COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING

SULTAN HAJI AHMAD SHAH CAMPUS

TRAINING AND DEVELOPMENT
HRSB 323
INDIVIDUAL ASSIGNMENT
SEMESTER 2 2015/2016
SUBMITTED BY:
JAMILAH BINTI ROSLAN
SECTION 2M
SUBMITTED TO:
PN FATINI HANIM
SUBMISSION DATE:
25TH NOVEMEBER 2015

What I understand after I read about 1 MDB is and from my knowledge about 1MDB
was 1MDB or known as 1 Malaysia Development Berhad which the CEO of the company is Arul
Kanda. The company supposed to be the leaders of the market-driven initiatives to assist the
Government in propelling Malaysia towards becoming a develop nation that is highly
competitive, sustainable and inclusive. 1MDB also supposed to invest for to gain benefits for
Malaysia.
Currrently,1MDB have faced a problem reported that Malaysians state investment and the
missing money in the Middle East have widened about nearly $ 1 billion. The mystery of the
missing money also have been said that it relates with the Malaysian Prime Minister that is Najib
Razak and investigation revealed that almost $700 million enter into the prime minister private
accounts and the source of money is unclear. According to the Malaysias anticorruption body,
they claimed that the money was donated from the Middle East but the donor remains unknown
as it was unspecified.
It became a big question marks to Malaysian about the donor of that big amount of
money to the prime minister, it doesnt make sense that somebody would donate such amount to
a prime minister and it became very suspicious because there is a lot of poor people in the world,
why on earth the donator from Middle East want to donates to a wealthy person like Najib
Razak.
Since 1 MDB have a huge debt that is totaling RM42billion, the have come to an
agreement with the China General Nuclear Power Corp or know as (CGN Group) to sell their
entire energy assets such as Powertek Energy Berhad, Jimah O&M Sdn Berhad, Mastika
Lagenda Sdn Berhad,, Tiara Tanah Sdn Berhad and Edra Solar Berhad or formerly known as
1MDB Solar Sdn Bhd. They sell off their assets in order to gain almost RM10 billion cash and
the cost incurred does not profitable for Malaysia but instead we have lost a lot. The shock news
announced that this is the first time a foreign were allowed to 100% share in independent power
plant in Malaysia, usually foreigners are allowed for only 49%. The transaction will be
completed around February 2016.
1MDB had already paid RM 12 billion for the equity of the power assets under Edra and
assume debt worth RM6 billion. The 1MDB hope to sell the energy assets at a price close to its
book price even though they didnt put the reserve price on Edra.
1MDB receives a lots of criticism but they still wants to be in the market. Everybody
seems to blame 1 MDB for Ringgits fall and they said no need to peg Malaysian currency since
the problem is 1MDB. They also said that 1MDB needs resolve its cash flow and so on.