09.01.2017

Malaysia: government works to close 1MDB

400The Malaysian government is working towards the winding up of state investment firm 1Malaysia Development Berhad (1MDB) under a plan spearheaded by a high-level government unit called the Budiman committee.

The state investment firm, which was established by Prime Minister Najib in 2009, is now being dissolved following allegations that its funds were used for personal reasons by the premier and his close associates, resulting in 1MDB’s debts peaking to $12 billion at one point. 

The assets of the state development fund will be transferred in coming months to two companies owned by the Finance Ministry. These valuable assets are two massive plots of land in Kuala Lumpur and one on Penang island.

"The resolution of 1MDB's debt obligations will be carried out separately by the government," said a senior government official familiar with the exercise.

Second Finance Minister Johari Abdul Ghani, who leads the Budiman committee, recently told The Straits Times that the sale of 1MDB’s power plants under Edra Energy to a Chinese firm for $3.79 billion had helped settle debts owed to Malaysian lenders.

“Our next move is to kick-start the property development of Bandar Malaysia and TRX,” he said, referring to 1MDB’s two major property development on the outskirts of the capital.


Events


Semptember 2015
  • 22
    Jun

    Benjamin Graham once said: "The essence of investment management is the management of risks, not the

  • 22
    Jun

    Wo liegt die Zukunft des Investierens und wie kann man sich in der steigenden Komplexität der Produ

  • 22
    Jun

    The event, reserved only to qualified investors, is aimed at private bankers, asset managers, famil

  • 28
    Jun

    Only a little more than half a year is remaining until implementation of PRIIPs and MiFID II, and th

  • 30
    Jun

    Lo Shipbrokers and Shipagents Dinner è uno degli eventi più importanti nel panorama mondiale della

See All

newsletter

Updates and news from MarketPlus

Market Overview
SMI® PR9015.420,33 %
LYXOR DAX INAV121.865-0,07 %
FTSE MIB Index20892.97-0,86 %
FTSE 1007426.50-0,29 %
CAC 405255.22-0,36 %
S&P 5002433.75-0,08 %
NASDAQ Composite6223.7339-0,16 %
HANG SENG INDEX25674.53-0,08 %
Powered by Yahoo Finance