1MDB refutes Zeti's claim on ringgit depreciation

1Malaysia Development Berhad says other currencies have also depreciated following the abrupt fall in oil prices.

On Monday, Zeti (pic) had stated that the issues surrounding 1MDB needed to be resolved first before the ringgit can rise again. | Astro Awani
1Malaysia Development Berhad (1MDB) has refuted a statement made by Bank Negara Malaysia (BNM) Governor Tan Sri Dr Zeti Akhtar Aziz which linked the company with the ringgit's decline.

Zeti had said that issues surrounding 1MDB needed to be resolved first before the ringgit can recover, during a session at the Malaysia Economic Update forum organised by the Performance Management and Delivery Unit (Pemandu) on Monday.

The state investment fund in a statement today said, apart from the ringgit, other currencies such as the Norwegian Krone, the Australian Dollar and the Russian Rouble have also depreciated following the abrupt fall in oil prices.

Other factors, it said, include expectation of rising US interest rates and concerns over the global economic slowdown in emerging markets.

1MDB also stressed that the value of its assets exceeds its debts.

1MDB said it had consistently met, with no default, its interest service and principal repayment obligations to both foreign and domestic lenders.


At the same forum, Zeti also said that Malaysia needed to build its own strength and resilience to ride out the patch of uncertainties in China and the United States, as factors affecting the ringgit were largely driven by global economic developments -- particularly these two powerhouses.

On BNM's investigation on 1MDB, she had said the central bank had concluded its probe and the findings have been handed over to the Attorney-General's Chambers.

Meanwhile, another panel member at the forum, Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said the government must come out with holistic solutions for 1MDB to recover as much as possible from its assets.