Wednesday 8 October 2014

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.



  1. Jibby conveniently skipped the part about what happened to all the billion of RMs being parked in the black hole called Cayman Island

    1. To: Ah Jib Gor . . . . MONEY FOR NOTHING

  2. Jibby, what about the issue of GS making extremely large beyond normal fee for arranging the bond? Ada kickback ke involved?

  3. ""1MDB, set up by the government in 2009, has secured loans guaranteed by the government amounting to RM5.8 million"

    Think its 5.8 Billion

    1. Hi bro SatD. It's an honor to have you dropping by here. I actually copied and pasted the report bulat-bulat. Don't really feel like commenting on it. If it's billions and not millions, then my guess is that someone, either at PMO or Bernama, was trying to be funny....or just being careless.

    2. Since you have a link with PMO, why don't you tell them to investigate fully and take action on the trying to be funny or careless on important matters?

      Bikin malu the entire PMO. Ask the culprit(s) to resign. At least disciplinary action. PMO or Bernama.

  4. i've heard about creative accounting and ponzi funds ruining the lives of your average American. the PM's explanation of 1MDB sounds so creative sorrylah i ordinary joe cannot understand, but Dr. M is more than worried i read.

  5. Singapore is doing way better in terms of attracting FDI (foreign direct investments) and getting both MNCs and foreign SMEs to set up operations there to service Asean and the region.

    And it has done this without having a local version of 1MDB!

    It's just a matter of having consistent and sensible policies, fairly and rigorously applied without fear or favour, taking a hard line on crime, corruption and unskilled foreign labour, and not flip-flopping on policies and decisions once in place.

    Even Tun Dr Mahathir, for all his sarcastic comments about Singapore, is noticeably reticent about how the "little red dot" has made a successful go of it thus far, after being unceremoniously ejected from Malaysia, without the benefits of overarching subsidies, affirmative action etc etc.

    I'd love to hear your explanations for this, Annie...

    1. Annie might have to consult PMO first, hehe

  6. has secured loans guaranteed by the government amounting to RM5.8 million. Look carefully at the word 'LOANS". DR M argue such business concecpt when the country have excessive fund not 'LOANS'. 1MDB venturing into business which can easily taken up by PRIVATE SECTOR. Why is goverment so actively entering business thus it will create a 'MONOPOLY' state and neglected healty 'COMPETITION' to the private sector. What is actually going on in the country. Why buy back private power generator when in the first place it a private venture.? Aint goverment suppose to create business oppurtunity to MALAYSIAN and collect taxes except for certain projects that is big and effects the people.

  7. he didnt answer tun's question on 1mbd at all.

    nice speech with some numbers and as usual some bombastic words like all his transformation but in the brings nothing to the people.

    not impress at all.

  8. really anxious how Tuan Syed OTSB responds to this..

    this glossy reporting aside, i think there are more than meets the eye.. eg.. the allegations of parked money in cayman etc.. even Tun M commented on it..

    how lah ajib gor??


    business and politics cannot be mixed.. too many conflicting interests!

    1. Najib sudah confused? His advisers confused? All told, it'll be a dark and gloomy PRU14 if UMNO does not replace Najib.

  10. Full Parliamentary scrutiny should exist for all these entities. Publish the audited accounts and be clear who the ultimate owners are. This is a public entity and not a private company. If the international partners don't want anything of information value published, then are these really the partners that our country needs?

  11. Nobody dares to start protests.