Writer : Abigail Priskila l Editor : Achmad Zulfikar Luthfi
As the world marks the 10th anniversary of the 1Malaysia Development Berhad (1MDB) scandal in 2025, the complex story of one of the largest financial frauds in history continues to unfold. What began in 2009 as a state investment fund to promote Malaysia’s economic growth has since spiraled into a multi-billion-dollar scandal involving high-ranking officials, international business figures, and financial institutions across the globe. The scandal’s legacy is marked by corruption, criminal mismanagement, and international efforts to hold those responsible accountable.
- The Origins of the 1MDB Scandal
In 2009, 1MDB was established under the leadership of then-Malaysian Prime Minister Najib Razak. The sovereign wealth fund was created with the objective of fostering economic development and attracting foreign investment into Malaysia. However, it quickly became clear that the fund’s operations were plagued by mismanagement and fraudulent activities. By 2015, reports revealed that billions of dollars from 1MDB had been misappropriated, funneled through global financial systems, and laundered by corrupt officials and businessmen.
The revelations of these financial irregularities sent shockwaves through Malaysia and the international community. As the scandal became more widespread, investigators began to uncover the vast scope of the corruption network, which spanned multiple countries, involved shell companies, and included high-profile figures, such as financier Jho Low and former Prime Minister Najib Razak.
2. Global Investigations and Asset Recovery Efforts
The scale of the fraud demanded an international response. The U.S. Department of Justice (DOJ) became a key player in the investigation, launching one of the largest asset recovery efforts in history. By 2025, over $1.7 billion worth of assets, including luxury properties, artworks, and even financing for Hollywood films, had been seized. The DOJ’s Kleptocracy Asset Recovery Initiative has been instrumental in tracking the illicit flow of 1MDB funds across international borders.
Despite these efforts, several key figures involved in the scandal remain at large. Jho Low, the financier accused of orchestrating the fraud, remains a fugitive, with law enforcement agencies across multiple jurisdictions still working to apprehend him. Meanwhile, former Prime Minister Najib Razak continues to face legal proceedings in Malaysia, where he is embroiled in multiple corruption trials related to the misappropriation of 1MDB funds.
3. The Impact on Malaysia’s Politics and Governance
The political ramifications of the 1MDB scandal have been profound. In 2018, public outrage over the fraud led to the downfall of Najib’s government, marking a historic shift in Malaysia’s political landscape. Najib’s successor, Prime Minister Mahathir Mohamad, who had once supported him, became a vocal critic and promised to investigate those responsible for the scandal.
However, even after Najib’s electoral defeat, the 1MDB scandal continued to affect Malaysia’s governance. In 2025, the legal process remains slow, with critics arguing that political influence has hindered the investigations. One of the key figures in this debate is Tan Sri Abu Kassim Mohamed, the former Chief Commissioner of the Malaysian Anti-Corruption Commission (MACC). Under his leadership, MACC began investigating the 1MDB scandal. However, his abrupt replacement by Tan Sri Dzulkifli Ahmad in 2016 raised questions about external interference in the investigation.
Testimonies, such as that from senior MACC officer Nur Aida Arifin, suggest that Abu Kassim’s efforts to probe the scandal were hampered by political pressures, with instructions to halt investigations after his departure. These revelations have sparked concerns over the independence of Malaysia’s anti-corruption body and the ability of investigators to tackle high-profile cases without fear of interference.
4. A Decade of Accountability and the Road Ahead
As the 1MDB scandal enters its 10th year, the fight for justice continues. While significant strides have been made in recovering stolen assets, the ultimate goal of holding all those involved accountable remains elusive. In Malaysia, the legal battles continue to unfold, with Najib’s ongoing corruption trials highlighting the long road to justice. The scandal has exposed deep vulnerabilities in the political and financial systems, revealing how high-ranking officials and international financial institutions can collaborate to perpetrate large-scale corruption.
The 1MDB scandal has also underscored the need for greater transparency and stronger financial regulations, not just in Malaysia but globally. The extensive use of shell companies, international banking systems, and opaque financial practices has highlighted the challenges in preventing and detecting corruption in the globalized economy.
As the world reflects on the 10th anniversary of the scandal, it serves as a stark reminder of the importance of transparency, accountability, and international cooperation in the fight against corruption. The global nature of the 1MDB fraud highlights the need for collective action to ensure that corruption, no matter where it occurs, is confronted and dealt with decisively.
5. The Legacy of 1MDB: A Call for Reform
The legacy of the 1MDB scandal extends far beyond the shores of Malaysia. It has become a symbol of the dangers of unchecked power and the global challenge of tackling corruption at the highest levels. The ongoing asset recovery efforts and legal proceedings demonstrate the determination of the international community to hold those responsible accountable. However, the scandal has also sparked important conversations about the future of financial oversight, the need for stronger anti-corruption laws, and the importance of protecting the independence of law enforcement agencies.
As we look ahead to the next decade, the 1MDB scandal serves as both a cautionary tale and a call to action. The fight for justice is ongoing, and the global community must remain vigilant in its efforts to combat corruption, promote transparency, and ensure that the lessons learned from 1MDB lead to meaningful reforms in governance, finance, and law enforcement. The 10th anniversary of the scandal is not only a moment to reflect on the past but also an opportunity to recommit to a future where corruption is no longer tolerated, and accountability prevails at every level of society.
