Najib on 1MDB

The following is a Bernama report:

Dewan Rakyat: 1MDB Has Total Assets Worth RM44.67 Billion - Najib

KUALA LUMPUR, Oct 8 (Bernama) -- 1Malaysia Development Bhd (1MDB) has accumulated assets amounting to RM44.67 billion until March 31 last year, said Prime Minister Datuk Seri Najib Tun Razak.

He said the agency was tasked with raising funds by bringing in foreign direct investments for national projects and issuing bonds, apart from securing loans from domestic and international financial institutions.

"1MDB, set up by the government in 2009, has secured loans guaranteed by the government amounting to RM5.8 million, but has not receive any government guarantee for bonds or other financing.

"It issued RM5 billion guaranteed Islamic medium-term notes (IMTNs) for a tenure of 30 years and borrowed RM800 million," he said in a written reply to Liew Chin Tong (DAP-Kluang) at the Dewan Rakyat here today.

Najib, who is also Finance Minister, said 1MDB spearheaded long-term projects by capitalising on foreign investments and expertise to clinch investments that have high multiplier effect and innovations.

He said the ongoing 1MDB's ventures included the City of Malaysia Project, which entailed the development of affordable housing, particularly for young executives.

The integrated development project involves the redevelopment of the Sungai Besi Airport as an icon for sustainable living in the capital, he added.

He said 1MDB also focused on the energy sector by acquiring energy assets from Tanjong Energy Holdings, Genting Sanyen and Jimah Energy Ventures Sdn Bhd to fulfil the government's aspirations in ensuring long-term sustainable energy security.

"1MDB-Mitsui Consortium also won the Energy Commission's 3Boleh Project involving the construction and operation of a 2000 megawatt coal-fired plant adjacent to the Jimah power plant in Negeri Sembilan," he said.

Hence, 1MDB has become the second biggest independent power producer in the country in terms of energy production capacity.

Najib said 1MDB was also tasked with the development of the Tun Razak Exchange to turn Kuala Lumpur into an international financial hub in line with the government's aspiration to make the capital a global city.

He said the project, scheduled for completion in 15 years' time, was identified as an enabler in the National Economic Transformation Programme in the quest to double the country's per capita income by 2020.

"The agreement signed by 1MDB Real Estate Sdn Bhd and Lend Lease's is expected to attract up to USD$1 billion (RM3.2 billion) in foreign direct investments into Malaysia," he said.

The Prime Minister said 1MDB was set up in accordance with the Companies Act 1965 to spearhead sustainable strategic economic development initiatives and encourage the inflow of foreign investments into the country.

"1MDB was established to drive long-term high impact economic development and forge strategic partnership globally to attract foreign direct investments into Malaysia that focus on the energy, real estate and hospitality sectors," he said.

-- BERNAMA