The pre-tax loss for the year ended 31 March 2014 of RM670m stands in sharp contrast to its pre-tax profit of RM878 in the previous financial year – a swing of some RM1.5bn.
Half of this swing came about because 1MDB’s finance cost shot up to RM2.4bn from RM1.6bn the previous year. In previous years, profits were made simply because land banks were revalued.
The loss this year came despite revenue rising 64 per cent from RM2.6bn last year to RM4.3bn this year.
Meanwhile, 1MDB’s debt grew from RM36bn to RM42bn.
The group claimed the higher finance cost was due to “its strategy to grow the assets base”.
Indeed, assets rose from RM45bn to RM51bn. But how much of this RM51bn consists of surpluses on revaluation of land sold (cheaply?) by the goverment to 1MDB, and does this RM51bn include the “goodwill” paid on 1MDB’s purchase of power assets? Does this include the funds in the Cayman Islands?
1MDB maintains it has “strong cash and cash equivalents reserves of RM16.7 billion”. (Does this include the RM7bn parked in the Cayman Islands? Opposition politicians had reportedly claimed that these funds were being managed by an obscure Hong Kong firm.)
Since March 2014, 1MDB said RM4bn (60 per cent of the RM7bn) had been “redeemed” from its “investments in Segregated Portfolio Companies registered in Cayman Islands” with a dividend of RM435m also received. The balance (40 per cent) is expected to be fully redeemed by November 2014.
1MDB Managing Director and CEO Mohd Hazem Abd Rahman said: “We have maintained our focus on growing the company’s asset base and investment capacity. This has been driven by significant capital expenditure in the short-term, which has resulted in an expected loss this financial year due to an increase in borrowings, but we are confident that the high quality nature of the assets acquired and projects secured will drive the business forward and ensure its growth in the long-term.”
Are you convinced?
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The Finance Minister and his Deputy Finance Minister think they can fool the international capital markets forever?
http://www.themalaysianinsider.com/malaysia/article/putrajaya-hiding-real-deficit-figures-says-dap
Hence the desperation to implement GST although this will hurt UMNO Baru-BN politically.
in this country rational honest thinking is obsolete. its all for the amno cronies who suck the nation dry — you cant trust the (government agencies) ,you cant trust anything any more. its (a) country with its hypocricy and subjugation of the minorities .
On Chinese newspapers today, 7 pre-war shop houses belonging to Teng Hock Nam at Lebuh China (heritage zone) were (allegedly) altered without permission.
http://www.chinapress.com.my/node/575457
Teng Hock Nam can retire comfortably with the rental yield from the 7 shop houses he owned at Lebuh China.
Hock None from Doctor to Politician and before RIP a property speculator ? A career path to be emulated by aspiring penangites ???
Imdb strong cash?
Hello loan with banks here hv to be rescheduled
Imdb making money?
Ya from revaluation of lands given to the co on the cheap
My take is go after goldman sachs for (allegedly) defrauding the msian public
There is a law known as RICO for the public to recover the fraudulent losses sufered by the msian public
In any commercial entity there is bound to be loss and profit. Temasik of Singapore managed by Singapore PM wife purchased shares in Thailand Thaksin Shin Corporation and lost billions when the shares were disposed. It will be good enough if we are not bullied by the pg govt but some jerk is so stupid to say we bully the Pg govt when they bully us into take it or leave it a 72k LMC for 240k. Yes vote BN for Brim 950 compared to DAP RM100.00 since the CAT start this popularity game. Stupidity breed stupidity for some. Where… Read more »
Isn’t increase in hawker license fees a form of bullying? Of course not when you walk the talk like a CAT! Of course not when the CAT ‘acts’ result in Penangites suffering, whether is be LC, LMC housing or increase cost of doing business of hawking. BUT for KosmoKapitan Pulau Pinang to be a reality, the pandai-berguna (untuk CAT) must thrive & overcome all the bodoh-bodoh-tak-berguna including in this digital sphere, anilnetto.com When the CAT’s ears are full of praises, no need to dig its ears, not matter how smelly & unsavoury for common sense so to speak, to be… Read more »
What i can say is vote la for BN beramai-ramai !!!
Why worry 1Brim sudah increase now almost a thousand ringgit. What a caring
govt we have !!!
A foreign lady was killed and cut into pieces, pg govt punya pasal, ini otak apa, no wonder only tulang left ???
Altantuya c4 into powder and the explosives could only be obtained by the authorised personnel but we diam diam saja.
Berani bully pg cm saja, apa gunanya orang macam ini ???
The Star: Gruesome killings dominate coffeeshop talk and put state in the spotlight. Police records reveal that since January, 46 murders have been reported here, with 65% or 30 cases involving foreigners. Note: Statistics shows even before PPS was disbanded, crimes of such horrendous proportion were committed & on the rise. So what’s the advantage of suggesting that such crimes could have been prevented by PPS (for a shiok-sendiri feel)? Asked yourself: Was PPS thoroughly trained to handle murderers with penchants for lobbing off heads? Aren’t you concerned those Ah Peks / Ah Chims volunteers could be put in dangerous… Read more »
Cakap tak pakai otak
cuti-cuti @Cayman Island lucky draw main prize for those who support the vision of transformation to be rich income nation ?
PKR’s Rafizi Ramli has promised to reveal the people and companies involved in state-owned 1MBD’s funds in Cayman Islands.
Rafizi started the Kajang move and the rakyat and country lost more than 4 millions due to the by election just for the fantasy of 1 person who will soon rot in Kajang jail.
Daim Zainudin also questioned why 1MDB parked uts billions of ringgit offshore at Cayman Island. Dubios operation?
Najib saud the asset is good, but assets are acquired with liabilities, else how to balance the book?
Likely that the cronies (could) gain from the assets if there is revenue/profut, but rakyat 1Malaysia will have to bear the liabilities in time to come, real soon?
Anil, off topic: Serial killing on the loose? The Star: Cleaner discovers woman’s torso stuffed in suitcase in Penang Just three days after the headless body of a woman was found floating off the sea here, another woman was found brutally murdered. The body, believed to be that of a foreigner, was found without a head and legs. The torso and the arms were found stuffed into a luggage bag in Jalan Kebun Bunga here. There have been a series of killings in Penang, with numerous bodies being found wrapped in blankets. Q: Is Cosmopolitan status a good thing for… Read more »
Noticed that serial killings started after PPS was disbanded by the police?
PPS was no trained to counter serial killing.
Dumping of dead bodies like that in Bukit Mertajam happened way before PPS was disbanded.
Without PPS, criminals are likely to be more bold on the prowl…
Anil with his vast accounting experience can educate the masses about simple finance which TV1, TV3 and Astro have been avoiding when comes to the debt incurred by 1MDB.
Yesterday in Prliment YB Tony Phua brought up this issue but the mainstream media as usual block out his queries instead show the typical BeEnd response via that Kepala Batas rep.
In accounting, when’s there’s asset there liabilities.
The 1MDB’s asset is questionable (transaction wise); and such assets being just book value which very likely have severe negative implication on liabilities to the rakyat !