1MDB business model too idealistic, says Najib

  • Nation
  • Wednesday, 04 Nov 2015

How do you view the 1MDB issue, which continues to be contentious?

Najib: The business model was too idealistic previously and its investments in Edra Global Energy did not meet its fast IPO listing target, hence it became saddled with large debt financing. Bank Negara has come out to say there is no systemic risk related to 1MDB. In other words, even if it fails, the financial effects are containable.

We expect to reduce the total debt for 1MDB by a significant amount – in the region of RM16 billion. For instance, with Edra Global Energy Bhd, there are two very real and huge proposals on the table to take over its power assets.

I am confident that as we conclude 2015, 1MDB will undergo a successful rationalisation process with a massive reduction in debts.

The 1MDB controversy has led to serious concerns on governance in Malaysia.

Najib: I agree that there are concerns about governance as a result of the problems with 1MDB. We are applying rigorous and exhaustive processes of investigation, and the wrongdoings will be dealt with in accordance with the law.

There are three agencies involved: the police, Malaysian Anti-Corruption Com­mission (MACC) and Bank Negara. All these investigations are ongoing and we will get answers.

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