Parliament ‘hallucinating’ on 1MDB global mega scandal

Photo credit: FMT

Putrajaya should table a White Paper based on the parliamentary Public Accounts Committee (PAC) Report on 1MDB Scandal.

PRESS STATEMENT In the past fortnight, while Prime Minister Najib Abdul Razak led the campaign in the Sarawak election to rain money throughout the state, Malaysia has not ceased to be at the receiving end of adverse international developments and references. For example, it has been named number two by The Economist in its second index of crony capitalism, just behind Russia which clinched the crony capitalism crown.

The Economist’s ranking for Malaysia was against the backdrop of the global fraud investigations into the RM50 billion 1MDB scandal. The scandal has already gained for the country a string of infamous world rankings, like the international website, foreignpolicy.com’s ranking the country for third worst ‘world corruption scandal of 2016’ and TIME magazine’s citation of Malaysia as the second worst example of global corruption in March.

We hope that the Malaysian Parliament would not “sleep-walk” for the eight parliamentary sittings when it reconvenes on Monday, May 16. Parliament must not carry on as if the first global scandal does not exist in Malaysia and that it was the whole wide world which was hallucinating about the 1MDB scandal and its adverse effects.

In fact, there should be a White Paper on the 1MDB Scandal based on the parliamentary Public Accounts Committee (PAC) Report.

Already, JP Morgan Asia has downgraded Malaysia’s status to underweight. This is bad news for Malaysia and potent testimony that the Prime Minister has gained no respite for the country or for himself on the 1MDB global scandal despite the landslide Barisan Nasional (BN) victory in the Sarawak election last Saturday.

The equity research team cited concern about Malaysian banks, which also account for about 30 per cent of the iShares MSCI Malaysia ETF (EWM), as one of the main reasons for the downgrade. It said the “negative outlook on financials was driven by increasing credit costs due to declining loan and deposit growth” and that banks are grappling with rising non-performing loans (expected to peak at 3.1 per cent in 2018).

The iShares MSCI Malaysia ETF had fallen 7.7 per cent in the second quarter, which makes it the second worst performing market in Asia after Taiwan.

 

Lim Kit Siang

Gelang Patah MP

DAP Parliamentary Leader

 

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