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Sell Of Energy Assets By 1MDB Has No Impact On Market

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KUALA LUMPUR – 1Malaysia Development Bhd’s sale of its energy assets to China’s firm will not have an impact on the market, said Bank Negara Malaysia’s Governor, Tan Sri Dr Zeti Akhtar Aziz.

“Our system is large and the foreign exchange market is huge. A single transaction so far in our monitoring does not impact the market. Only cumulative transactions will affect the market,” she said after officiating the “Iclif Leadership Energy Summit Asia 2015” here today.

Zeti was asked on possible impact of the disposal by 1MDB energy arm, Edra Global Energy Bhd, of all its assets to China General Nuclear Power Corp and its units (CGN group) for RM9.83 billion.

Zeti said Malaysia’s banking system was sound and solid with huge capital buffer and low impaired loan of 1.5 per cent.

On the investigation on 1MDB, she said, there was progress.

“We have already completed our investigation and now there is some progress in the action that are being taken relating to some of the approvals that we had given them,” she said.

BNM had earlier ordered 1MDB to repatriate funds amounting to US$1.83 billion after it has revoked three permissions to the fund under the Exchange Control Act 1953 (ECA) for investments abroad.

The repatriation was issued under the Financial Services Act 2013.

However, Zeti said she was not at liberty to discuss the status of the investigation until it was concluded. – BERNAMA

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