By KINIBIZ
Issue 018 of KINIBIZ Magazine hits the stands today with it’s cover story focusing on the main issues that will concern and confront us and our country going forward. We nailed it down to just three – 1Malaysia Development Bhd (1MDB), that RM2.6 billion “donation” that went into the prime minister’s personal accounts at AmBank and AmIslamic Bank, and the falling ringgit.
This was the main preoccupation in 2015 and you can bet your bottom dollar – sorry, a badly depreciated ringgit – that these three things will come to haunt us in the new year.
Now, despite everything that 1MDB says, issuing many times more press releases this year than it has in the previous years since 2009 combined, 1MDB is NOT – I repeat, NOT – OK. It may be trying to sell its assets to repay part of its debts, but that does not justify at all what it has done in the past which has already cost the country billions of irrecoverable ringgit and will cost it many billions more.
We have attempted to explain the serious problem that 1MDB is as simply as possible and to untangle the money maze which shows a deliberate attempt to siphon off billions of ringgit through extremely dubious and questionable means likely to benefit a few. It is a convoluted maze, with many side paths, but we have stayed on the main trail to cover the necessary ground.
Well, is there a link between 1MDB and that RM2.6 billion donation? For that we move into the realm of circumstantial evidence – inferences from other pieces of evidence. Most of the money, some US$680 million out of US$700 million, did indeed come from a bank intimately related to one of the key players in 1MDB. And the amount involved is quite close to the US$700 million which was siphoned off from 1MDB. Meanwhile, the prime minister’s fate hangs upon that “donation” and what people make of it.
Market operators know that when there is negative news, it exacerbates the fall of a currency more than what the fundamentals dictate, which is the case of the ringgit and 1MDB coupled with the “donation”. And does that not put a risk premium on Malaysia unless the governance issues are settled?
Also look at our list of people and things to watch out – they are likely to be different from the norm. And we still carry all our usual comment pieces and analyses.
One interesting development is that KINIBIZ is turning to equity crowdfunding to raise funds for future expansion, explained in this issue too.
Please do note that we have only one bumper issue in December and that our next issue will appear on Jan 12 when we examine the state of the world for your benefit.
Meanwhile, Merry Christmas and Happy New Year and may 2016 be a prosperous and fulfilling one for you and those dear to you. See you in 2016.
This issue of the KINIBIZ Magazine can be bought at the stands for just RM20. A combined subscription to both KINIBIZ online and KINIBIZ Magazine is just RM318 per year. In order to subscribe, all you need to do is click here.
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