Najib: 1MDB payment to IPIC delayed because of technical matter
KUALA LUMPUR: The 1Malaysia Development Bhd’s (1MDB) payment to the International Petroleum Investment Co (IPIC) is delayed due to a technical matter, said Prime Minister Datuk Seri Najib Tun Razak.
“A statement was already issued on this matter, so this is a question of technicality and not about being unable to afford repayments.
“This is not expected to affect confidence in our national economy,” he said in reply to a supplementary question by Datuk Seri Dr Wan Azizah Wan Ismail (PKR-Permatang Pauh) in Parliament yesterday.
The US$602.73mil (RM2.56bil) was due on July 31 and is the first of a two-part payment that 1MDB has to pay IPIC under a debt-settle- ment agreement amounting to US$1.205bil (RM5.16bil) that was reached in April this year.
The second payment of US$602.73mil (RM2.58bil) is due at the end of this year.
Yesterday, in a three-paragraph statement, 1MDB said it had written to IPIC to inform them that the obligations would be made in August.
It said the delay was because the payments would be made from the proceeds of the 1MDB rationalisation plan, which was originally due last month but had been pushed back due to additional regulatory approvals.
On Wan Azizah’s question about national debt, Najib said it was within control and had in fact been reduced to 52.5% from 54% previously.
Earlier in the Dewan, Najib said the Malaysian economy was still exposed to risks at the global stage, despite projections that local and international economies are recovering.
He said the International Monetary Fund report projected world economy to grow 3.5% this year and 3.6% next year, an improvement from 3.2% in 2016.
“Even so, Malaysia is still exposed to risks like the uncertainty over policies of developed countries, volatility of the financial markets, increase in trade protectionism sentiments, crude oil prices, and geopolitical risks.
“The government’s far-sighted economic plans and proactive steps in implementing major decisions have built up a strong resilience for the Malaysian economy to face external challenges,” he said in reply to a question by Datuk Seri Ahmad Hamzah (BN-Jasin).
Najib assured the Dewan that the Government would continue to implement policies and initiatives to strengthen the economy at the domestic and international levels.
“The success of many of our previous initiatives have shot down accusations that we are a failed state.
“Instead, we have the National Transformation Plan to propel us towards a developed, high-income nation, but I do believe a complete achievement is when we also have a better quality of life for the rakyat,” he said.