Malaysia says DBS-linked 1MDB asset recovery not just about lost funds

KUALA LUMPUR – Malaysia’s prime minister Anwar Ibrahim said a Singapore lawsuit involving DBS Group filed by liquidators of four 1Malaysia Development Bhd (1MDB)-linked firms is also about reclaiming the country’s credibility. “This recovery effort is not merely about reclaiming lost funds,” Anwar, also Malaysia’s finance minister, said in a statement on Sept 13 acknowledging the claim. “Trust, confidence in institutions, and Malaysia’s standing among international partners were also compromised during this dark chapter in the nation’s history.”The claim, filed in the Singapore’s High Court, seeks around US$1 billion (S$1.27 billion) in damages from DBS on behalf of four companies now in liquidation that were linked to one of the biggest financial frauds in history.DBS said it “categorically rejects and will vigorously resist” the claim.The move against Singapore’s largest bank shows how the fallout from the scandal continues to reverberate years after billions were allegedly siphoned from 1MDB, the now-defunct Malaysian sovereign wealth fund.Malaysia’s total financial obligation tied to the 1MDB scandal stands at RM51.4 billion (S$16 billion), with asset recovery efforts so far receiving RM31.3 billion, according to the government’s Sept 13 statement. Among the settlements, JPMorgan agreed to pay RM1.4 billion in 2025. Bloomberg