Asia-Pacific News

Najib says 1MDB failure 'manageable': Report

Najib Razak, Prime Minister of Malaysia.
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Malaysia aimed to cut the debt load carried by beleaguered state fund 1Malaysia Development Bhd (1MDB), but even if the fund failed, the financial effects will be containable, Prime Minister Najib Razak said, according to The Star.

In comments to the newspaper, Najib said the business model of the fund was "too idealistic previously" and some of the investments had not met targets.

"I am confident that as we conclude 2015, 1MDB will undergo a successful rationalization process with a massive reduction in debts," Najib told the newspaper.

Najib Razak, Prime Minister of Malaysia.
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The fund has been under scrutiny for months amid allegations of false auditing, huge debt and, more recently, financial fraud, with alleged links to the Prime Minister himself.

Sultans from nine of Malaysia's states, who typically keep to ceremonial duties, have asked for an investigation into the fund, while the country's central bank this month urged the attorney general to begin a criminal investigation of 1MDB, amid signs of increasing unease with the government's handling of the affair.

Najib admitted to the newspaper that there were concerns about governance at the fund but said the government would investigate thoroughly through the police, Malaysia's Anti-Corruption Commission and Bank Negara, the country's central bank.

"All these investigations are ongoing and we will get answers," he said.

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