PM Najib admits 1MDB failings, lapses 'valid' cause for concern

Keynote address by Prime Minister Datuk Seri Najib Tun Abdul Razak at Invest Malaysia 2018. Photo by: MOHD SUHAIMI MOHAMED YUSUF

Keynote address by Prime Minister Datuk Seri Najib Tun Abdul Razak at Invest Malaysia 2018. Photo by: MOHD SUHAIMI MOHAMED YUSUF

Keynote address by Prime Minister Datuk Seri Najib Tun Abdul Razak at Invest Malaysia 2018. Photo by: MOHD SUHAIMI MOHAMED YUSUF

Bursa Malaysia Bhd Chairman Tan Sri Amirsham A Aziz at Invest Malaysia 2018. Photo by: MOHD SUHAIMI MOHAMED YUSUF

Prime Minister Datuk Seri Najib Tun Abdul Razak, Bursa Malaysia Bhd CEO Datuk Seri Tajuddin Atan (far left), Minister of Finance Two Datuk Seri Johari Abdul Ghani, Maybank Group Chairman Datuk Mohaiyani Shamsudin and Maybank Group, Group President & CEO Datuk Farid Alias at Invest Malaysia 2018. Photo by: MOHD SUHAIMI MOHAMED YUSUF

From left: Minister of Finance Two Datuk Seri Johari Abdul Ghani, Bursa Malaysia Bhd Chairman Tan Sri Amirsham A Aziz and Bursa Malaysia Bhd CEO Datuk Seri Tajuddin Atan (center) at Invest Malaysia 2018. Photo by: MOHD SUHAIMI MOHAMED YUSUF

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KUALA LUMPUR (Jan 23): Prime Minister Datuk Seri Najib Tun Razak said 1Malaysia Development Bhd's (1MDB) failings and governance lapses were 'valid' causes for concern for a government-owned entity.

Najib said in his keynote address at Invest Malaysia Kuala Lumpur 2018 today that he is not going to brush over the issue and that the nation has learned lessons from 1MDB.

"This is why I ordered one of the most comprehensive and detailed investigations in Malaysia’s corporate history, one that involved multiple lawful authorities, including a bipartisan parliamentary body. Their findings were taken on board — and the company’s board was dissolved, its management team changed and its operations reviewed.

"1MDB rationalised its assets, and with the proceeds, took an aggressive approach in reducing the debts to its lowest possible levels, and the company concentrated their efforts on ensuring its two most valuable assets, Bandar Malaysia and Tun Razak Exchange, remain as attractive investment propositions to both its shareholders and its investors," Najib said.

He claimed while 1MDB has its failings and governance lapses, there was a concentrated campaign to sabotage the Malaysian economy for political gain. 

"Challenges at certain state-owned institutions, and you will all know I am referring to 1MDB, were amplified and used as a tool to suggest that our economy is collapsing," he added.