KUALA LUMPUR - Malaysia said on Thursday it will provide up to 2.8 billion ringgit ($697.9 million) to complete an integrated financial district from which more than 3 billion ringgit was diverted to pay debts of scandal-plagued 1Malaysia Development Berhad (1MDB).
Finance Minister Lim Guan Eng said the decision will "help allay concerns" of local and foreign investors on the fate of the TRX City project in Kuala Lumpur. It includes nearly-complete Exchange 106, which will be the tallest building in Southeast Asia.
The TRX City case is an example of how 1MDB used money that was intended for a venture to instead repay debts "not related to the project," Lim told a news conference.
The minister said since 2012, Malaysia's government extended advances and transfers, and bought land from TRX City for a total amount of 3.69 billion ringgit. Of that, 3.07 billion ringgit was "misappropriated" by 1MDB, mainly for 1MDB loan repayments, he said.