Malaysia has reclaimed $156m in assets tied to the 1MDB scandal following a US investigation, according to the US embassy in Kuala Lumpur.

The US ambassador to Malaysia, Edgard D Kagan, mentioned that these funds represent the fourth installment of assets returned to Malaysia after a US Department of Justice investigation.

"This substantial amount of money is being returned to the Malaysian people, where it truly belongs, and can finally be used for its intended purpose – to improve the lives of everyday Malaysians," Kagan said in a statement released by the embassy late on Thursday.

Kagan met with Malaysian Prime Minister Anwar Ibrahim on Tuesday to confirm the latest amount, raising the total of returned assets to $1.4bn, according to the embassy.

US authorities estimate that over $4.5bn was diverted from Malaysia’s 1MDB state fund by high-ranking officials and their partners.

The scandal led to Malaysia's first governmental change in six decades, initiated investigations in six countries, and resulted in the convictions of former Malaysian Prime Minister Najib Razak and former Goldman Sachs banker Roger Ng.

Earlier this year, Malaysia announced the recovery of property and assets valued at 23.9m ringgit ($5m) from 1MDB, a fund created by Najib for economic development.

In February, Malaysia’s pardons board halved Najib’s 12-year prison sentence and reduced a 210 million ringgit ($44.5m) fine to 50 million ringgit ($10.6m).

Jho Low, a Malaysian financier alleged to be the mastermind behind the scheme, was indicted in 2018 but remains on the run.

Malaysian authorities claim Low is in China, a claim denied by Beijing.