'Recovery plan' to 'save' 1MDB in the works

19 May 2015 / 21:18 H.

PUTRAJAYA: The Finance Ministry, with its relevant agencies, will work out a "recovery plan" to "save" the debt ridden investment arm 1Malaysia Development Bhd (1MDB), said Prime Minister Datuk Seri Najib Abdul Razak.
He said the government is striving to reduce 1MDB's debts and is confident the plan would work out well.
"We believe the recovery plan can reduce 1MDB's debts. I am confident that the ministry will see it through.
"Although we are faced with many criticisms, eventually we will prove that the recovery plan can save 1MDB and help it reach its goals," Najib said at the Finance Ministry's monthly assembly today.
Stressing the government will continue its current financial policies, Najib, who is also Finance Minister and 1MDB advisory board chairman, said this also included 1MDB.
However he did not elaborate on the "recovery plan" outlined for 1MDB.
Najib said all questions on 1MDB will be answered soon because the Auditor-General will present the report to the Public Accounts Committee (PAC).
Urging all quarters to wait for the report, he said, he is confident the measures taken will resolve the current problems.
On March 4, Najib had directed the Auditor-General to verify 1MDB's accounts.

Meanwhile addressing the ongoing hiccups with the Goods and Services Tax (GST) implemented since April, Najib said its implementation would help narrow the country's fiscal deficit.
"Since GST was introduced in April, I admit there are many questions and complaints from the people, especially those who do not understand its implementation.
"It is an efficient and effective change that will bring the country to a stronger fiscal position. It will help narrow our fiscal deficit.
"If we continue to depend on the current tax system, we would face an account deficit," he told the congregation from various departments under the ministry.
He reiterated the enforcement on errant businesses seeking opportunities to profiteer with GST and the government's efforts in getting public feedback.
Najib said the government is in the midst of collecting feedback and questions from the public to know whether it "has basis" or only grouses from certain irresponsible parties.
He also said the government will disclose how the additional funds collected from GST will be used in the next budget.
Najib said GST was implemented to face short term challenges which will be ironed out in the long run.
"Eventually people would realise and accept the implementation," he said.


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