From Malaysia Factbook
1Malaysia Development Berhad (1MDB) is a wholly-owned government corporation that is aimed at spearheading initiatives that have a significant impact on the Malaysian economy. It seeks to achieve this by way of:
- making strategic long-term investments;
- forging global partnership; and
- promoting foreign direct investment.
1Malaysia Development Berhad (1MDB) has a Board of Advisors that is chaired by the Prime Minister. As of March 2014, its key projects are:
- Tun Razak Exchange (TRX), a 70-acre RM26-billion mega property development that was launched on 30 July 2012, initially known as the "Kuala Lumpur International Financial District";
- Bandar Malaysia, a planned 196-hectare redevelopment of the old Sungai Besi Airport into a mixed integrated development of commercial, residential and hi-tech green environment; and
- Various energy-based projects in the Sarawak Corridor of Renewable Energy (SCORE).
2. History: 1Malaysia Development Berhad (1MDB) began as the 'Terengganu Investment Authority' (TIA) which was set up on 27 February 2009 under Prime Minister Tun Abdullah Ahmad Badawi as a sovereign wealth fund, aimed at developing Terengganu's economy.
Less than 2 months later, on 3 April 2009, Najib Tun Razak succeeded Tun Abdullah Ahmad Badawi as Prime Minister of Malaysia and on 22 July, he announced that the 'Terengganu Investment Authority' (TIA) would be expanded into a federal entity to enable its benefits to reach a broader spectrum of Malaysians, rather than confined its benefits to only residents of one state. TIA was thus renamed '1Malaysia Development Berhad' (1MDB) on 25 September 2009.
3. Criticisms and controversies:
- FY2010 1MDB amazing profits: In the financial year ended 31 March 2010, 1Malaysia Development Berhad (1MDB) posted a profit of RM425 million. Bearing in mind that 1MDB was formed only on 25 September 2009, this performance is nothing short of 'miraculous'. DAP Member of Parliament for Petaling Jaya Utara, Tony Pua, questioned as to whether the figures were the result of hefty asset injection into 1MDB by the government, such as the transfer of land rights to the company.
- Hefty discount for Sungai Besi Airport land to 1MDB: On 23 November 2011, Tony Pua demanded an explanation from the government over what he saw as a huge discount for the sale of the 495-acre Sungai Besi Airport land to 1MDB. The land was sold at RM1.6 billion, equivalent to just RM74.20 per sq ft for prime land in Kuala Lumpur where prices had reached in excess of RM1,000 per sq ft. At that price, he said that the government was, in fact, subsidizing 1MDB with money which could have been used for welfare programs for the rakyat.[1] more... at Chronology
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