Skip to content
Subscriber Only
Business
QuickTake

How Malaysia’s 1MDB Scandal Shook the Financial World

The Tun Razak Exchange project in Kuala Lumpur, Malaysia.
The Tun Razak Exchange project in Kuala Lumpur, Malaysia.Photographer: Goh Seng Chong/Bloomberg
Updated on
From

Read More: Ex-Malaysia PM Najib Razak Faces Court for Biggest 1MDB Corruption Trial

Malaysia’s state-owned investment fund, 1MDB, was supposed to promote development. Instead, it has spurred investigations around the world into deal-making, election spending and political patronage under former Prime Minister Najib Razak. The figures are mind-boggling: Of the $8 billion that 1MDB raised via bond sales, the U.S. alleges more than half was siphoned off. Angry voters ousted Najib in a 2018 election that ended his party’s 61 years of rule, and two years later he was convicted in the first of a series of trials. Goldman  Group Inc. has agreed to pay more than $5 billion, including a record $2.3 billion fine in the U.S., and enter its first-ever guilty plea for its role in the scandal.