PAROI, Aug 1 — Datuk Seri Najib Razak sought again today to defend his administration from criticism over the multibillion ringgit 1Malaysia Development Berhad (1MDB) scandal, telling his detractors that the state investor’s problems do not determine the country’s financial position.

The prime minister suggested that 1MDB’s problems may have been exaggerated to paint a bad image of the government, pointing out that it was even claimed that the firm had lost RM42 billion.

“The 42 billion is not missing, impossible to go missing,” he told the Seremban Umno delegates meeting today in his speech.

“The situation in the country is not as bad as what has been claimed by certain parties. The country is not been defined by the 1MDB issue,” he added.

The Umno president added that contrary to rumours, 1MDB’s investments never involved public funds.

“1MDB.... is not a development model that uses public funds,” Najib said, before stressing that the firm has only ever received a RM1 million in equity from the government and that its debts are backed by solid assets.

The Pekan MP added that the Finance Ministry which oversees 1MDB has already taken the necessary measures to reduce the firm’s debt under the rationalisation plan. "I am only asking for six months to make sure it gets underway. It is not like the debt can be reduced overnight but what is important is we have a plan," Najib said. He added that several foreign dignitaries have already expressed their interest in purchasing 1MDB's assets, including the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani and the China ambassador, both of whom he said have met him to discuss the matter. "It means we have assets. It means we have people interested in buying the assets. It means we have a plan to revive 1MDB," he said. The prime minister also cited the improvement in Malaysia’s credit outlook by Fitch Ratings, noting that this had come even after the agency met with him and visited 1MDB’s office here. Fitch Ratings had last month revised Malaysia’s A-grade outlook to stable from negative after signalling a downgrade earlier this year, saying the country’s finances are improving and growth remains steady.