Malaysia to receive RM4.65bil from IPIC as part of 1MDB settlement, Parliament told

KUALA LUMPUR: Malaysia will receive RM4.65bil from Abu Dhabi's International Petroleum Investment Co (IPIC) next year as part of the settlement over the 1Malaysia Development Bhd (1MDB) scandal.

Deputy Finance Minister I Datuk Seri Ahmad Maslan said the amount would be enough to pay off the remaining debts of the state investment arm.

"This brings the total in the trust fund to RM9.85bil, which is enough to service the remaining debt obligations of 1MDB amounting to RM5bil," he said while winding up his ministerial reply on Budget 2024 on Monday (Nov 6).

"This 1MDB problem is almost resolved," he added.

He said the government has thus far serviced 1MDB debts amounting to RM24.53bil.

"In 2024, we will only have to pay an interest of RM287mil, and the maturity period for this interest payment is 2039. The last principal payment in 2039 will be RM5bil," he said.

Meanwhile, Ahmad said Putrajaya is taking steps to drop demands brought by Goldman Sachs, which commenced arbitration proceedings against the government on Oct 11 this year.

"It is a form of mischaracterisation towards the Malaysian government, and the government was not in breach of the settlement agreement," added Ahmad.

On Oct 11, it was reported that the New York-based investment bank was suing the Malaysian government in a UK arbitration court following a disagreement during former premier Tan Sri Muhyiddin Yassin's tenure to resolve 1MDB's US$6.5bil bond saga.