Thursday, March 12, 2015

What's next with 1MDB

There are so much pressure on 1MDB that it has no choice but to open its book gradually in a controlled fashion to minimize its damage besides shielding responsibilities away from " The Untouchable ".

No matter what, one lucky scapegoat must be identified as an offer to the divine god since it is year of the goat. How on earth can an ordinary citizen pull all the strings behind the scene and make all the big shots look like puppets and fools in the public eyes ?

1MDB needs cash fast and in big chunk, apparently it gets two separate 1 billion at its disposal, with limited resource, it has to be First Come First Serve basis, unless, someone has special right to jump ahead the queue.

Then, it must examine its assets, bear in mind, 1MDB must always maintain the perception that its total assets is larger than its total debts. This means a fire sale is out of the picture.

1MDB has two types of assets, one is utility ( power and water plants ) assets and the other is potential property development assets ( Bandar Malaysia and Tun Razak Excange Malaysia ).

The utility assets are acquired at inflated price and the amount of cash generated from its operation is just above fixed deposit return, hence, it has no immediate role to play.

Bandar Malaysia at best is just another Bandar Nilai development project with long profit capturing period, so it is also out of the picture.

The only way to save 1MDB comes down to TRX.


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