Malaysia's 1MDB at Risk of Default

The transcript discusses the financial and political turmoil surrounding 1MDB, a Malaysian state fund, and its default on a $1 billion payment. The situation has significant implications for Malaysia's economy, with bond prices slumping and plans to sell Islamic bonds. The scandal also affects Prime Minister Najib Razak, linked to 1MDB and a separate political scandal involving Saudi donations. His brother, Nazir Razak, is scrutinized for distributing funds to politicians. A parliamentary committee identified over $4 billion in questionable transactions by 1MDB, with IPIC denying ownership of a company involved.

What are the potential repercussions for Malaysia's economy due to the issues surrounding 1MDB?

What actions are being taken by Nazir Razak in light of the 1MDB controversy?