Which Malaysian state investment fund was at the center of the 1MDB financial scandal?

1Malaysia Development Berhad was the Malaysian state investment fund at the center of the 1MDB financial scandal.

The fund was established in 2009 after the Terengganu Investment Authority was taken over and renamed. It was intended to promote economic development through strategic investments and infrastructure projects. Instead, investigators found that billions of dollars raised through bonds and other financing were diverted from the fund.

The scandal involved Malaysian officials, bankers, intermediaries, and companies in several countries. The U.S. Department of Justice alleged in 2016 that more than $4.5 billion had been misappropriated from 1MDB between 2009 and 2015. Assets linked to the case included luxury real estate, artwork, a superyacht, and funds used in film financing.

A common mix-up is confusing 1MDB with Malaysia’s sovereign wealth fund Khazanah Nasional. They are separate entities: Khazanah was established in 1993, while 1MDB became the subject of the international corruption investigation. The scandal also contributed to the defeat of Malaysia’s long-ruling coalition in the 2018 general election.