Financial result proves 1MDB is productive - Ahmad Maslan

The financial result of 1Malaysia Development Berhad (1MDB) which ended on March 31, proves that it had a productive year.

Deputy Finance Minister, Datuk Ahmad Maslan said the group recorded a loss of RM665.3 million for the 2014 financial year, largely due to higher financing costs amounting to RM2.4 billion as compared to RM1.6 billion in the previous financial year.

"It is a part of its strategy to expand its asset base.

"The group's asset base increased to RM51.4 billion from RM44.6 billion in the previous year, with total increase in loans from RM36.2 billion to RM41.9 billion," he said in his Facebook posting today.

He explained that the total income increased by 64 percent from RM2.6 billion to RM4.3 billion, and reflects the quality of its assets which are being developed and strengthened to generate income.

Ahmad also said the main focus of the capital expenditure in the next financial year includes projects acquired by a subsidiary of energy and sustainable development, the Tun Razak Exchange (TRX).

"It is the first financial hub of Kuala Lumpur, by a subsidiary of our properties.

"Since the end of the financial year in March 2014, 1MDB has redeemed a total of more than RM4 billion from our investment in the Segregated Portfolio Companies, which is registered in the Cayman Islands, with the remainder expected to be fully acquired in November 2014.

"A dividend of RM435 million from this investment has also been obtained after the financial year which ended in March 2014 and will be deposited into the account the next financial year ending March 2015," he added.