KUALA LUMPUR, Jan 6 — Malaysia is ramping up its long-running effort to recover money lost in the 1Malaysia Development Bhd (1MDB) scandal, accelerating lawsuits across multiple jurisdictions and expanding scrutiny of international banks and financial intermediaries, as recoveries continue to lag far behind the scale of the losses, according to an interview with Datuk Seri Johari Abdul Ghani published by Singapore-based media organisation CNA today.
Johari, who is investment, trade and industry minister and chairman of the 1MDB Asset Recovery Taskforce, told CNA that Putrajaya hopes to “fast-track” existing civil suits by asking courts in Malaysia, Singapore and Hong Kong to fix early hearing dates in 2026.
He said the government is also reassessing the role of additional financial institutions beyond those already named in lawsuits.
“We are also reviewing other banks and financial intermediaries involved in the flow of funds from 1MDB,” Johari said in the CNA interview, adding that Malaysia remains open to privately negotiated settlements with global financial institutions.
CNA reported that Malaysia has already filed suits in Malaysia, Singapore and the British Virgin Islands against several major financial players, including Deutsche Bank, Standard Chartered Bank, Julius Baer Group, BSI Bank and Hong Kong-based corporate services provider Amicorp, with total claims amounting to about US$5.21 billion (RM21.2 billion).
Kuala Lumpur has also brought a separate US$1.83 billion claim against PetroSaudi International’s former chief executive Patrick Mahoney and US law firm White & Case.
Some cases are already moving. CNA said Malaysia is currently in mediation talks in Hong Kong with Julius Baer, while proceedings against Deutsche Bank are expected to begin in Kuala Lumpur this month, although hearing dates for other suits have yet to be fixed.
Johari said parties that received funds directly from 1MDB are also on the task force’s “legal radar”, without elaborating.
Johari emphasised that litigation does not preclude negotiation.
“We are flexible. If parties choose to enter into negotiations after suits are filed, we are open,” he told CNA.
He added that recovery efforts would be stepped up in the coming months, stressing: “There is no slowing down in the asset recovery campaign.”
According to CNA, Malaysia has recovered just over RM25.62 billion so far through a combination of overseas asset seizures, non-conviction-based forfeitures, settlements and fines imposed on local and international banks.
Overseas recoveries, assisted largely by US authorities, have included proceeds from the sale of luxury assets such as the superyachts Equanimity and Topaz, as well as high-end real estate and artworks.
Domestically, major sums were recovered through settlements with institutions including AmBank Group, Goldman Sachs and JPMorgan.
Despite these efforts, the sums clawed back cover only about 64.6 per cent of 1MDB’s RM39.64 billion debt, CNA reported.
Prime Minister Datuk Seri Anwar Ibrahim has told Parliament that since 2018 the government has already paid RM42 billion in principal and interest linked to 1MDB borrowings, with another RM13 billion still to be settled in the coming years — a gap that underscores how asset recovery has yet to fully offset the financial damage caused by the scandal.
CNA noted that Malaysia’s renewed focus on suing banks and professional firms marks a strategic shift as the role of the US Department of Justice has diminished following the disbanding of its Kleptocracy Asset Recovery Initiative.
With most major criminal cases now concluded, including those involving former prime minister Datuk Seri Najib Razak, the Johari-led task force has become the central pillar of Malaysia’s attempt to recover what remains of the billions siphoned off in one of the world’s largest corruption scandals.
