The Newsletter 71 Summer 2015

The 1MDB controversy in Malaysia

Cassey Lee

One of the most controversial issues confronting Malaysia’s ruling political coalition, Barisan Nasional, is the 1Malaysia Development Berhad (1MDB). Technically, the 1MDB is a private corporation wholly-owned by the Ministry of Finance, Malaysia. It was established in 2009 by converting a state sovereign investment fund, the Terengganu Investment Authority, into a federal entity. The 1MDB was assigned the role of a strategic investment company with the mission “to drive sustainable economic development by forging strategic global partnerships and promoting FDI”.