Response to Tan Sri Muhyiddin Yassin
1MDB notes the press release issued yesterday by Tan Sri Muhyiddin Yassin. The characterisation of 1MDB as a “debt-laden company” is misleading, as Tan Sri Muhyiddin, a former Cabinet member, knows full well that the value of 1MDB’s assets exceeds its debt.
This fact is reinforced by the significant value indicated by local and international investors for the ongoing sale of equity in Edra Energy and Bandar Malaysia.
As a Cabinet member when 1MDB was formed, Tan Sri Muhyiddin is fully aware of 1MDB’s capital structure. With RM1 million in equity from its shareholder, the Ministry of Finance, 1MDB raised capital on the markets – which is the debt on the company’s accounts.
Many businesses, both in Malaysia and abroad, have used debt to successfully build their asset base. In 1MDB’s case, from RM 1 million equity, total group shareholder equity of RM1.7 billion was generated as of 31 March 2014. Notwithstanding the subsequent and ongoing challenges, which are well documented and acknowledged, 1MDB remains confident of generating surplus value as we progress with the rationalisation plan.
1MDB regrets that, despite repeated clarifications, certain current and former politicians continue to issue half-truths about the company. It is now clear that this is part of a deliberate and politically motivated attack, to sabotage not only our previously planned energy IPO but the ongoing implementation of our rationalisation plan.
Despite this, 1MDB and our 100% ultimate shareholder, the Government of Malaysia, are fully committed to executing the plan, as presented to Cabinet on 29 May 2015.