Johari: 1MDB can resolve debt issue without Government help

(Bernama) – 1Malaysia Development Berhad (1MDB) is confident of resolving its debt and cash flow issue more quickly without help from the Government, the Dewan Rakyat was told Wednesday.

The 1MDB issue is not a cause for the fall of the ringgit, said Deputy Finance Minister Datuk Johari Abdul Ghani (pic).

“On the contrary, several external factors, such as the fall in crude oil prices and a global economy dependent on exports, are exerting pressure on the ringgit,” he said when replying to an oral question from Siti Zailah Mohd Yusoff (PAS-Rantau Panjang).

Johari said all strategic planning under the 1MDB rationalisation plan were being implemented quickly towards reducing the debt-incurred interest of the company.

“1MDB has planned and is implementing the rationalisation measures, including asset sale and equity partnership. We are confident of resolving the amount of debt incurred without government financial assistance,” he said.

1MDB said recently the rationalisation plan involves, among others, debt-for-assets exchange with International Petroleum Investment Company (IPIC), sale of equity in Edra Energy and Bandar Malaysia, sale of land in TRX (Tun Razak Exchange) and disposal of non-core assets.