Lim Guan Eng told reporters on Friday that Malaysia would consider a settlement with the bank to the tune of $7.5 billion.
"An apology is just not sufficient. Not enough," Lim said on Friday, speaking from Malaysia's administrative capital Putrajaya. "There must be the necessary reparations and compensations."
"Goldman Sachs should understand the agony and the trauma suffered by the Malaysian people as a result of the 1MDB scandal."
Goldman earned roughly $600 million in fees for raising $6.5 billion for the fund.
In December, Malaysia filed criminal charges against Goldman Sachs, saying that $2.7 billion of the proceeds of three 1MDB bonds was misappropriated and that it was seeking "well in excess" of that amount in fines.
Malaysia also filed charges against two former Goldman partners for their role in the scandal.
Lim's words come just two days after Goldman's CEO David Solomon apologised publicly to the people of Malaysia for the role that Timothy Leissner, one of the two ex-partners facing criminal charges, played in the scandal.
On the bank's earnings call Wednesday, Solomon said Malaysia had been "defrauded by many individuals" including Leissner.
"At least he accepted that they have to bear and shoulder some responsibility," Lim said in response to Solomon's apology.
"That apology of course goes some way toward that, but that is insufficient."
Goldman Sachs did not immediately respond to a request for comment on Friday, but in a statement earlier this week, the bank maintained that it will "vigorously defend" itself against any charges, and accused former government officials of lying to the bank.
The full Goldman statement is below:
SEE ALSO: The bizarre story of 1MDB, the Goldman Sachs-backed Malaysian fund that turned into one of the biggest scandals in financial history