1MDB dragnet poses thorny bilateral challenges for Malaysian PM Mahathir

KL govt faces potential economic and political repercussions over crackdown on fund scandal

Seized superyacht Equanimity (top) in Port Klang, Malaysia, earlier this month, while a Bombardier Global 5000 without a body number (above) is seen parked at Seletar Airport in February last year.
Seized superyacht Equanimity (above) in Port Klang, Malaysia, earlier this month, while a Bombardier Global 5000 without a body number is seen parked at Seletar Airport in February last year. PHOTO: REUTERS, AGENCE FRANCE-PRESSE
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Malaysia's aggressive stance towards all matters tied to its beleaguered state-owned investment firm, 1Malaysia Development Berhad (1MDB), has helped Prime Minister Mahathir Mohamad's government shore up its public approval ratings since coming to power after a divisive general election in early May.

But the dragnet over the assets allegedly purchased with embezzled 1MDB monies and the move to upend infrastructure projects suspected to have been used as inducements for financial assistance to settle debt payments for the scandal-ridden sovereign fund are producing separate challenges that could adversely impact the economy and sour relations with key foreign investors.

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A version of this article appeared in the print edition of The Sunday Times on August 26, 2018, with the headline 1MDB dragnet poses thorny bilateral challenges for Malaysian PM Mahathir. Subscribe