The MADANI government strengthens governance and public administration to restore international confidence after the 1MDB scandal, says deputy minister.
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.
Liew said the government, under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, had introduced a series of institutional reforms to prevent recurrence of the 1MDB scandal while rebuilding investor and market confidence.
“As a result, Malaysia has recorded its highest-ever approved investments and trade performance, while improving its position in global competitiveness rankings,” he said in reply to Chong Chieng Jen (PH-Stampin) during Question Time in the Dewan Rakyat today.
Among the key reforms, Liew said, was the enactment of the Public Finance and Fiscal Responsibility Act 2023 to strengthen fiscal discipline and prevent abuse of power in the management of public finances.
He said the government had also amended the Audit Act to expand the Auditor-General’s powers through a “follow the public money” approach, enabling more comprehensive audits of public expenditure.
In addition, Liew said the government is drafting a Government Procurement Bill and reforming the legal framework governing state-owned enterprises (SOEs) as part of broader efforts to strengthen governance.
He said the 1MDB scandal had not only inflicted substantial financial losses on the government but had also severely damaged Malaysia’s international reputation after attracting widespread global media attention, triggering investigations by foreign enforcement agencies and involving cross-border legal proceedings.
“This has negatively affected international perceptions of Malaysia’s governance, the integrity of its public institutions and the management of its public finances.
“The damage to the country’s reputation has also posed challenges to the government’s efforts to strengthen investor confidence, enhance economic competitiveness and maintain market trust in national institutions and fiscal policies,” he said.
Liew said the government had spent RM18.7 billion from operating and development expenditure since 2017 to meet 1MDB’s financial obligations.
He added that after the MADANI Government took office in March 2023, it had to allocate RM13 billion from the development budget to redeem USD3 billion in government-guaranteed 1MDB bonds, equivalent to about 13.1 per cent of that year’s total development expenditure.
