KUALA LUMPUR, Jan 10 — 1 Malaysia Development Bhd (1MDB) missed its stated timeline to repatriate billions of ringgit parked in the Cayman Islands due to the magnitude and complexity of the funds, its new president has said.

Clarifying previous statements specifying that a remaining US$1 billion (RM3.5 billion) would be brought home by the end of 2014, Arul Kanda said that the repatriation has been initiated and would be completed within months.

“I understand that it was originally stated these funds would be redeemed by the end of the year that has just concluded but as a former banker, I can tell you that — with investments of this size and nature — it takes a while to wrap them up,” Kanda was quoted as saying by news portal The Malaysian Insider.

“However, the process to do so has already commenced, and I can assure you that we will make an announcement about this as soon as it is done.”

Yesterday, the state investor confirmed that it has already repatriated some RM4 billion from the Cayman Islands, which it previously said was kept in the tax haven to shield the funds from foreign exchange fluctuations. It had deposited a total of US$2.3 billion there.

The ringgit has fallen from a high of RM3.10 last year to RM3.50 against the dollar following a sharp decline in oil price that triggered concerns over the country’s finances.

1MDB previously stated that the funds held by a Segregated Portfolio Company in the Cayman Islands would be redeemed no later than December 31, 2014.

Deputy Finance Minister Datuk Ahmad Maslan also told Parliament last November that all the money parked in the Cayman Islands would be brought back to Malaysia by the end of last year.

1MDB, a brainchild of Prime Minister Datuk Seri Najib Razak, has come under intense opposition scrutiny following revelations of its growing debt pile.

Financial daily The Edge recently reported that the investment arm, which started as Terengganu’s oil investment fund, had fail to pay a short term debt amounting to RM2 billion, prompting warnings of a rating downgrade.

But on Tuesday, Bloomberg reported Kanda defending the investment company’s credentials, insisting that it has been a “responsible borrower”.