Those criticising the Federal Government’s strategic development arm 1Malaysia Development Berhad (1MDB) don’t realise that Putrajaya committed only RM1 million into the company, but now has more than RM50 billion in assets to show for it, said Prime Minister Najib Razak.
While the PM admitted that 1MDB does have substantial debts to its name, he contended that the company’s assets far outweigh its liabilities.
He said 1MDB’s debt situation would change soon, as the company moves towards an initial public offering (IPO) for its power plant assets in the second quarter of the year.
The IPO is expected to help reduce 1MDB’s debts by some USD12 billion, and expand the company’s scope of businesses.
“When the IPO is launched later in a market condition which is positive, for sure we can attract local and foreign investors in the energy company owned by 1MDB,” Najib said on the Astro Awani programme Soal Jawab (‘Question and Answer’).
Najib also reminded viewers that 1MDB has a land bank of 222.58 hectares in Kuala Lumpur, the value of which is huge.
“The financial centre project, Tun Razak Exchange, also has great value.”
