Minister for communications in Malaysia, Salleh has accused Switzerland of breaking diplomatic protocol and spreading misinformation over 1MDB scandal. He has described the issue in a separate statement, as a diplomatic rift between these two countries. However, OAG in Switzerland has refuted to comment against political statement.

Allegations of corruptions have been first published in a Wall Street Journal report. The report has focused on transferring money from an account at Falcon Private Bank in Singapore to accounts in Malaysia. The accounts are believed to be owned by Najib, founder of 1MDB.

The OAG has initiated criminal proceedings against two former 1MDB officials in last August. It has brought allegations for violating Swiss law related to bribery of foreign officials, misconduct in public office and money laundering.

Consequently, Malaysian currency and stock market have dropped over the past year. Capital outflows have also in the rise.

Moody's has revised the outlook on Malaysia's sovereign rating to stable from positive in earlier this month. But the overall rating has been kept at A3.

The revision in economic outlook is due to the deteriorating economic growth, risks from high system- wide leverage. However, the rating agency has expressed skepticism over improvement in the public debt burden at a sooner time.

Allegations for embezzlement of funds amounting $4 billion from the state exchequer have been made by the Office of the Attorney General in Switzerland. Though Prime Minister Nazib Razak hasn't been fingered directly by the Swiss authority, but his opponents have called for his resignation. The scandal has increased the economic volatility and investors are seen to wait for an ending.