Former Malaysian prime minister Najib Razak leaving the Malaysian Anti-Corruption Commission headquarters in Putrajaya yesterday. He was questioned for five hours over transactions involving state firm SRC International, which was once a subsidiary o
Former Malaysian prime minister Najib Razak leaving the Malaysian Anti-Corruption Commission headquarters in Putrajaya yesterday. He was questioned for five hours over transactions involving state firm SRC International, which was once a subsidiary of 1MDB.

Malaysia’s new administration yesterday detailed the full extent of the threat posed to the country’s economy by mega projects under the previous government, while former prime minister Najib Razak was hauled in for questioning by anti-graft investigators.

Finance Minister Lim Guan Eng revealed that the country’s debt obligations had surpassed RM1 trillion (S$338 billion) under the Najib administration, far higher than the RM700 billion flagged by the previous government at the end of last year. The new administration said it would review defence deals, housing projects and even the High-Speed Rail (HSR) to Singapore in an effort to cut waste and corruption.

Mr Lim also claimed that the Treasury had been “bailing out” scandal-ridden 1MDB and had paid RM7 billion to service the state fund’s debt obligations since April last year. This included a settlement of more than RM5 billion to Abu Dhabi fund IPIC, he said. This showed that 1MDB had “essentially deceived Malaysians” by giving the impression that its debts…