KUALA LUMPUR, Sept 22 ― 1Malaysia Development Berhad (1MDB) today denied that its activities caused the ringgit to depreciate over the past year, amid Bank Negara Malaysia Governor Tan Sri Zeti Akhtar Aziz’s remark that domestic scandals are affecting Malaysia's economy.
The state-owned investor argued that the ringgit is not the only currency that has devalued in recent months, stressing that others such as the Norwegian kroner, the Australian dollar, Russian rouble and Brazilian real have likewise fallen due to the dive in global crude oil prices and uncertainty over US interest rates.
“1MDB is disappointed that Tan Sri Zeti appears to single out 1MDB for the current weakness of the Ringgit,” the firm said in a statement.
“We take this opportunity to highlight that the value of 1MDB's assets exceeds its debt. Furthermore, Tan Sri Zeti will be aware that 1MDB has consistently met, with no default, its interest service and principal repayment obligations, to both foreign and domestic lenders.
“Historically, never once has one company been linked in such a way to the value of the ringgit. We trust that the facts shared by 1MDB and the immediate clarifications issued to date, will provide clarity and assurance to all concerned parties,” the firm added.
Yesterday, Zeti said Malaysia's economic recovery will hinge on a speedy resolution of the 1MDB fiasco and questions over the RM2.6 billion donation made to Prime Minister Datuk Seri Najib Razak's private bank accounts.
She said in a panel discussion at the Economic Update 2015 that this must come in tandem with the eventual decision by the US Federal Reserve to raise US interest rates, a recovery in global energy prices and improvements to market conditions in China.
Zeti added that the public the public have every right to get answers on 1MDB ― which reportedly racked up debts amounting to RM42 billion ― and the donation purportedly from the Middle East, in the interest of greater transparency in governance.
