KUALA LUMPUR, 29 Apr: The PKR de facto leader, Datuk Seri Anwar Ibrahim, criticised the increase in debt by fourfold of 1Malaysia Development Berhad (1MDB), chaired by the Prime Minister, Datuk Seri Najib Tun Razak, from RM8.4 billion in 2012 to RM42 billion in 2013.
He added that despite the total asset for 2013 increased to RM44.6 billion, 1MDB needs to bear an annual payment of RM1.6 billion due to their total loan of RM36 billion.
He stressed that 1MDB may face financial crisis in the future, based on reports of the financial flow constraints it is currently facing if the situation continues.
“Quoting the report by The Edge Weekly on April 28, titled ‘Edge Weekly unearths questionable deals of 1MDB, urges fund to bring home RM18b’, the surge in net income for 2013 by RM0.78 billion compared to RM0.045 billion in 2012 was only because of real estate revaluation.
“Without the land revaluation gain of RM2.7 billion, 1MDB would have bled RM1.8 billion,” he said in a press conference today.
The Member of Parliament for Permatang Pauh also predicts that 1MDB will take in more debt in future to finance 1MDB mega projects, the Tun Razak Exchange (TRX) and Bandar Malaysia, which is now estimated to be around RM45 billion.
“The country needs to take a prudent approach in spending rather than continue to be in debt for the sake of short-term profit, which has potential of burdening the next generation,” he said.
