1MDB rationalization plan improves perception towards company

1Malaysia Development Berhad's (1MBD) ability in implementing its rationalization plan within six months has help improve the overall perception towards the company.

Affin Hwang Investment Bank Vice-President and Head of Retail Research, Dr Nazri Khan Adam said, the plan was successful in achieving its objectives as it was implemented in a systematic and timely manner.

Dr Nazri said, to continue the recovery process of the company, 1MDB needs to further strengthen its business model in order to generate profits again.

"I believe its Chief Executive Officer, Arul Kanda has more plans that are not only focused on debt reduction, but also to generate profits.

"After the 6-month phase, 1MDB is already seen as having a strategic vision and good focus and I hope it will continue to the next phase," said Dr Nazri in an interview with AWANI.

He believed that 1MDB can regain investor confidence by giving priority to its strengths in the real estate sector and power plants without having to compete with other local companies.

"The sale of Edra Global Energy Bhd and a 60 per cent stake in Bandar Satu Malaysia is proof of investor confidence in 1MDB," he said.

Dr Nazri explained that as a sovereign fund company, 1MDB is responsible for providing governance and transparency in its business model.

In addition, he also hoped that the strategic development company will bid in tenders abroad, and at the same time attract more foreign investors to Malaysia.