Umno deputy president Muhyiddin Yassin has disagreed with his boss Najib Abdul Razak's comment that 1MDB has not used the people's money.

Careful to qualify that he is merely "commenting and not criticising", Muhyiddin said the billions in loans given to the company were guaranteed by the government, which operates using taxpayer's funds.

"The prime minister said, why do you make noise about 1MDB? It did not use people's money.  

"But first remember, I am only commenting, not criticising (the PM).

"He (the PM) said don't worry because no taxpayers' funds are being used.

"That is true, but the billions were loaned from banks. Every cent of that loan will eventually be borne by whom?" he asked, to which the crowd shouted, " Rakyat (The people)!"

"The Semporna people are wise," he replied, cheered by about 2,000 Semporna Umno members  during the Sabah division's annual general meeting this morning.

Muhyiddin was removed as deputy prime minister on July 28 along with Semporna division chief Shafie Apdal from their respective ministerial posts.

Both are vocal critics of 1MDB and had made their views known in the cabinet and Umno supreme council meetings.