Kuala lumpur: The MADANI Government continues to strengthen governance and public administration to restore international confidence in Malaysia following the 1Malaysia Development Berhad (1MDB) scandal, Deputy Finance Minister Liew Chin Tong said.
According to BERNAMA News Agency, Liew stated that under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, the government had initiated a series of institutional reforms aimed at preventing a recurrence of the 1MDB scandal while also working to rebuild investor and market confidence. This initiative has resulted in Malaysia achieving its highest-ever approved investments and trade performance, as well as an improvement in its global competitiveness rankings.
A pivotal reform highlighted by Liew was the enactment of the Public Finance and Fiscal Responsibility Act 2023, designed to strengthen fiscal discipline and prevent power abuse in managing public finances. Additionally, the government has amended the Audit Act to expand the Auditor-General's powers, allowing for more comprehensive audits of public expenditure through a 'follow the public money' approach.
The government is also in the process of drafting a Government Procurement Bill and reforming the legal framework governing state-owned enterprises (SOEs) as part of broader efforts to enhance governance. The 1MDB scandal, Liew noted, not only caused significant financial losses but also severely tarnished Malaysia's international reputation, attracting global media attention, triggering investigations by foreign enforcement agencies, and involving cross-border legal proceedings.
Liew emphasized that the scandal has adversely affected international perceptions of Malaysia's governance, the integrity of its public institutions, and the management of its public finances. This reputational damage has posed challenges to the government's efforts to reinforce investor confidence, boost economic competitiveness, and maintain market trust in national institutions and fiscal policies.
Since 2017, the government has spent RM18.7 billion from operating and development expenditure to meet 1MDB's financial obligations. Liew added that after the MADANI Government assumed office in March 2023, it had to allocate RM13 billion from the development budget to redeem USD3 billion in government-guaranteed 1MDB bonds, an amount equivalent to approximately 13.1 percent of that year's total development expenditure.