Datuk Seri Najib Tun Razak. -filepic
KUALA LUMPUR: The government is desperate for revenue following its decision to accept dividend from Khazanah Nasional Bhd despite the company posting a loss before tax last year, says Datuk Seri Najib Tun Razak.
The former prime minister said Khazanah posted a RM6.27bil loss before tax and had declared a dividend of RM1.5bil for 2018.
"If you look at the principles of corporate tax, if a government entity had posted losses, should that entity pay dividend?
"We know that Khazanah posted losses and the value of its assets fell by RM25bil or 22% from the value in 2017.
"If you follow the principles of corporate governance, Khazanah need not declare dividend.
"If there is already a RM6.3bil loss, compounded further by the RM1.5bil, this shows that the government today is too desperate to generate additional sources of revenue," said Najib in his debate on the motion of thanks on the Royal Address on Monday (March 18).
Najib said that according to official data from Bank Negara Malaysia, national debt level rose from RM686bil in 2017 to RM741bil as of end of 2018.
He said the official debt rose to RM776.3bil following the issuance of a RM28bil bond and RM7.3bil Samurai bonds.
"This is an increase of RM90.3bil under the Pakatan Harapan government.
"In this matter, we can see that the RM90.3bil, together with the RM82bil dividend from Petronas, is the RM30bil losses incurred by 1Malaysia Development Berhad (1MDB) the biggest problem for the country," he said.
Najib added that the Tun Razak Exchange project worth RM40bil is one of the best assets for Malaysia.
Bandar Malaysia can also be maximised to bring in more returns, he said.
"Therefore, the 1MDB debts definitely can be settled. This does not include investments from International Petroleum Investment Co (IPIC), where we can settle the 1MDB debt," he added.
The Pekan MP also took a swipe at the Domestic Trade, Cooperatives and Consumerism Ministry on price control of essential goods.
Najib said the relevant minister had once promised to look into the reason why the prices of McDonald's and KFC had increased.
"But until now, there is nothing. If you really want to control the prices of goods, then look into the prices of eggs," he said.
Najib said the minister had once announced that the prices of eggs dropped two sen.
"But today, when you look at the price of triple A egg, it is almost 50sen per egg.
"If you cannot even control the prices of essential goods, don't expect to control the prices of others," he said before ending his debate.
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