IPOH, March 14 — The cash flow problem faced by 1 Malaysia Development Berhad (1MDB) currently is expected to be resolved by the end of 2015, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

He said the 1 MDB had now taken several strategic measures including studying the rationalisation of land owned by the company and launching initial public offering (IPO) in June or July.

“We believe that after the land rationalisation and launching of the IPO, we will be able to tackle the financial problems faced by 1MDB,” he told reporters after attending the Chinese New Year open house organised by the Tambun pomelo smallholders, here today.

Ahmad Husni said that so far, the 1MDB had utilised RM600 million of the RM950 million allocated by the government as temporary available credit before the company launched the IPO.

“We provided the funds because we don’t want the company to continuously be in debt. The debt will not only increase the amount to be paid but also include the interest rate.

“So, after the launching of the IPO and several other measures, we want to see the company review its financial structure to reduce their debt repayment burden,” he said.

Ahmad Husni, who is also the Member of Parliament for Tambun, pointed out that the 1MDB is facing the cash flow problem not due to management problems or misappropriation as had been alleged.

“The 1MDB is involved in long-term investment, so to reap profit from the investments made would take some time.

“The company’s financial statement for the year ended March 31, 2013 had shown profits but it only recorded a loss in 2014,” he added. — Bernama