KOTA BARU: 1Malaysia Development Bhd (1MDB) will be shut down once the strategic investment company settles all its debts.
1MDB chairman Tan Sri Dr Mohd Irwan Serigar Abdullah said he was confident the company would be able to repay all its debts through the ongoing rationalisation plan.
Irwan Serigar, who is also the Treasury secretary-general, said the debts would be paid from the revenue the government's mega projects such as the development of the Tun Razak Exchange (TRX), slated to be the tallest building in the country and region upon completion, the East Coast Rail Link (ECRL) and the second Mass Rapid Transit (MRT) project.
"Soon, residents who own a place in the TRX city will pay rent, and we will also sell land plots of Bandar Malaysia which will be developed with public transport such as high-speed train, ECRL and MRT.
"Through this, we will pay the debts ... Rome wasn't built in a day, we will not get the revenue immediately, instead it will take more than 10 years to generate income from the long-term development.
"Once the debts are paid, there will be no need for 1MDB," he said in a press conference after delivering the Economic Challenge Order to students of Universiti Malaysia Kelantan (UMK), here, today.
Last year, according to the Deed of Settlement with the Minister of Finance (Incorporated) Malaysia and IPIC, 1MDB had fully paid to International Petroleum Investment Co (IPIC) the debts due on Dec 31, 2017.
1MDB has to pay about US $ 600 million (RM2.43 billion) to IPIC as part of a settlement agreement agreed in April last year.
Earlier, Irwan Siregar said 1MDB was the same as any other company set up by the government.
"Of course, there are companies that profit and suffer losses ... when the company suffers losses, it will shut down, but all debts must be paid first," he said.