By Khairie Hisyam
Something hasn’t been right at controversial 1Malaysia Development Bhd for a long time and the air now smells of desperation.
More recently, a myriad decision changes and contradictory statements, as well as flip-flopping seen from Putrajaya, raise gave concerns on whether things are really worse than Malaysians’ worse fears.
The issue is cash — despite billions of free cash stated in its accounts, the self-styled strategic development company had been desperately scrounging around for some to pay loans due. And a lot of different entities are providing cash to 1MDB too.
As a simple illustration, consider that 1MDB has RM46 billion in borrowings. 1MDB only has RM13 billion in power generation assets, which it was looking to sell to strategic investors just last week but apparently not anymore earlier this week.
These figures suggest 1MDB should have so much cash it shouldn’t know what to do with it. Then why is the company in such dire straits of illiquidity?
The time has come for full disclosure.
Malaysians should be informed of exactly what borrowings 1MDB has, from whom and due when. Tell us the repayment terms and exactly what assets and investments 1MDB has to show for its RM46 billions. Explain why 1MDB doesn’t seem to have enough in its pockets despite indications otherwise from its accounts.
Because lest we forget, at the end of the day 1MDB is owned by the Ministry of Finance and that makes you, me and all other Malaysians vested in the issue.
In any case, here are a selection of our best news, analyses and commentaries this week for your reading pleasure:
Pick 1 — Water boils in Selangor, again. Selangor state’s water restructuring seems close to collapse with a fresh federal-state dispute over the master agreement. Are the people set to be the ultimate loser in the whole saga? In addition our resident cat asks whether politics should be allowed to float above a basic living necessity for millions of Selangorians. Read here, here and here.
Pick 2 — Dr M: Why does Najib trust Jho Low? The Godfather of Malaysian politics, former premier Dr Mahathir Mohamad or Dr M had launched a fresh assault on incumbent prime minister Najib Abdul Razak, criticising various issues and raising pressing questions on among others the close involvement of businessman Jho Low in 1Malaysia Development Bhd affairs. Read on here.
Pick 3 — Break telco monopoly, calls minister. Deputy Finance Minister Ahmad Maslan has urged the break-up of monopoly in the telecommunications market after telcos were found collectively hiking prices of reload coupons along with the introduction of the goods and services tax (GST). While telcos have agreed to revert back to pre-GST prices, they need one month to do so. Read here and here.
Pick 4 — Mydin insists GST not passed on to consumers. After a public promise to retain prices despite additional costs from GST, Mydin chief Ameer Ali Mydin had reiterated the stance as shoppers circulate purchase receipts from the hypermarket showing GST charges. The indication of GST paid is a legal requirement but end-price remains unchanged, said Mydin. Read here.
Pick 5 — Dubai gauntlet for Kuala Lumpur’s sukuk dominance. Having outstripped London last year in terms of sukuk listed on exchanges, the emirate of Dubai now has its eyes on Kuala Lumpur’s dominance in its goal to be the capital of the global Islamic economy. That said the Dubai market is far behind still in comparison. Read more here.
Pick 6 — Halal marketplace targets 1 mil vendors by 2020. Barely five months since its launch last October, and Zilzar, the self-styled e-commerce “Muslim lifestyle marketplace” has set a target to get 1 million vendors across the globe on board by 2020. How does Zilzar intend to carve out that space for itself in a global industry worth US$1.3 trillion (RM4.8 trillion)? Read on here.
Pick 7 — Why, oh why, do you want to fly, flymojo? The plan to set up yet another airline in Malaysia – with the funky name of flymojo – boggles the mind as airlines are facing major problems. What is it that flymojo can offer that will make it different… and who really backs it? Our resident cat ponders these questions and more here.
Pick 8 — Why Malaysians remain unconvinced of GST. Malaysia is now into its first week of living with the goods and services tax or GST. And there had been teething pains aplenty. But even up to the eve of GST kicking in many Malaysians remained unconvinced that this is the right thing for the nation. Chief concern? Faith (lack of it) in the government’s ability to manage it, argues our resident cat here.
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– by Khairie Hisyam Aliman, News Editor
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