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1MDB issues have no impact on country’s fiscal policy

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Syndicated News
Written by Syndicated News
KUALA LUMPUR, Nov 26 2015 : Issues pertaining to 1Malaysia Development Berhad (1MDB) have no impact on the national fiscal policy.
The Finance Ministry, in a statement explain that this was so  because the government investment firm’s debts guaranteed by the government only amounted to RM5.8 billion.

It a written reply circulated in the Dewan Rakyat today, the ministry stated that the government would ensure that 1MDB would be focused on efforts to consolidate its financial position, including resolving issues related to cash flow.

The ministry said the main issue of 1MDB now was the mismatch between the inflow from business operations and asset sales and outflow of principal and debt interest payments.

“The mismatch occurred due to the postponement of the Initial Public Offering (IPO) plan of implementation and the difficulty in selling land owned by 1MDB as a result of the various accusations and criticisms levelled at 1MDB,” it said in reply to a question from Datuk Dr Mujahid Yusof Rawa (Amanah-Parit Buntar).

The ministry said that to address the challenges and to repay the debts of the company, 1MDB had carried out a strategic review following which a rationalisation plan was presented to the cabinet.

“The cabinet agreed to the plan and directed 1MDB to implement it immediately,” it said. – Bernama

 

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