Why 1MDB Parked Its Money In Singapore?

Hantu Laut


Veteran Newsman Questions Rationale Of Parking 1MDB Funds In Singapore.


Again, I must qualify this is not a support for 1MDB (something is rotten in Denmark applies), but since they are keeping their inelegant silence, maybe, I can throw some lights on the controversy, why 1MDB keep parking the money outside the country. 

I don't believe in prolixity, so I'll make it short and breezy in layman's terms.

If you know the nitty-gritty of international banking and finance, it's not hard to understand why they keep parking the money outside Malaysia.

Why Singapore?

Singapore, being a financial centre allow non-residents to park their money in time-deposits in foreign currencies, where you can place your money in most major currencies and interest earned are not subject to Singapore tax (non-residents only)

Unlike Malaysia, many banks in Singapore have two departments, the DBU (Domestic Banking Unit) and ACU (Asian Currency Unit). 

Singapore is not short of banks that will gladly accept this kind of money as long as they are comfortable with where it came from.

Why 1MDB parked the money outside Malaysia?

If 1MDB remit the money back to Malaysia, they will have to convert it to local currency and they will no doubt collect more ringgit in exchange for the US$ funds, but should any of its foreign obligation matures anytime soon, they will have to incur massive foreign exchange losses, if they have to use ringgit to repay the foreign debts, so it makes sense to keep the money in the original currency, which, unfortunately, has to be placed in one of the financial centres as Malaysia do not have, or rather do not allow foreign currency deposit in the country.

The explanation given by PM Najib for keeping the money in Singapore because of BNM ruling requiring its approval for amount over RM50 million is wishy-washy, a terrible misguidance. Who would believe BNM can put a hurdle on a sovereign fund the brainchild of the PM? Why would BNM objected whatever the amount is for money coming into the country and allow billions to fly out of the country without a squeak?  

As a matter of fact if the US$1.1 billion had been remitted back to Malaysia, it would have strengthened the ringgit wee bit.

On the other hand, there is also strong possibility that the money is encumbered as collateral or part of collateral of other borrowings, thus the constraint of bringing it back home and the inelegant silence.

One can imagine one of two things of the opaqueness of 1MDB operations, either they are completely arrogant, or they are in such a big mess, they just don't know how to respond sensibly.

1MDB Bank Negara Approval:Are They Barking Up The Wrong Tree?

Hantu Laut

Jho Low Claimed The “PM/ FM” Gave Approval To Keep Bank Negara In The Dark On 1MDB Loan

I 'll not doubt there is something rotten down in 1MDB and the goings-on, therein, may not be known to the PM.

As I have suggested earlier forensic audit of the account be carried out to detect any fraudulent transactions, such audit should be carried out by our Auditor-General together with a reputable international auditing firm, which has in-depth knowledge of the world of international banking and finance, the reason being our AG office may not be familiar with those complicated cobwebbed financial instruments.

What I am going to say here is not in support of Jho Low, 1MDB or the PM, it's purely my personal opinion.

I suggest you guys check out BN (Bank Negara) objectives and regulations before you freak out on this highly politicised issue.

Jho Low may be right about BN approval not required as it is an offshore to offshore loan in foreign denominated currency (no ringgit involved), which in all likelihood is outside BN jurisdiction, therefore, BN approval is not necessary. It also makes sense that only MOF (Ministry of Finance) approval is required as 1MDB is wholly owned by the Malaysian government under the jurisdiction and control of Ministry of Finance, therefore, the company's BOD approval is required and MOF being the sole shareholder of 1MDB, its consent is also required.

Being an entity under MOF, who else can give approval on the matter if not the Minister of Finance, who also happened to be the Prime Minister? Don't forget by virtue of being the PM, he automatically become the de facto CEO of all state-owned companies.

Bank Negara would be more concerned if there were going to be foreign exchange involvement, or if the loan originated or domiciled in Malaysia, or if proceeds of the loan remitted back to Malaysia, where there would be greater impact on the local currency, economy and financial well being of the country if things go wrong.

1MDB would only need to inform BN and gets its approval if it raised foreign loans or issued bonds and bring back the proceeds to Malaysia. Its borrowings from domestic banks must be reported to BN, who as regulator can block or vary the huge borrowings if it's worried of undue impact on the credit and monetary system. 

As it is, the ringgit had already gone deep down south due to comprehensive politicising of the issue that have created skepticism and distrust in the Malaysian economy. Today, the ringgit is 3.69 to US$1.00 due to highly speculative and effective rumoring rather than fact-based economic indicators. Malaysia, is now rated one of the most politically unstable countries among investors and fund managers and it will get worse if no effort is taken to stabilise the very fluid political situation.

Most of the blame should fall squarely on the shoulder of PM Najib Razak as he was more concerned in keeping his popularity and hold on to power within his own party rather than to revive and strengthen the party popularity among the populace.


If they are so sure of the BN regulation, why SR (Sarawak Report) not named the source in Bank Negara who says to them such approval is required?

I think, Sarawak Report, Rafizi and the rest of the gang are barking up the wrong tree on the issue of Bank Negara's approval.

Murder With Recourse:Why Western Media Blacked Out Sirul's Story ?

Hantu Laut

It's like a nuclear fallout to many Malaysians, the biggest scoop of the century with politicians from the opposite camp having a field day drawing their knives going for an overkill.

DAP Lim Kit Siang was having the biggest thrill of his life poking murderous pun at PM Najib here.

When it rains, it pours in Malaysia, but it's all quiet on the Western Front........ 

Why?

Why did the Western media blacked out Sirul's story?

I have trolled the Internet numerous times hoping to hook onto some reputable media in the West reporting the story first hand, there was none. Every search I made took me to pages of either Malaysian Insider, Malaysiakini, or some other Malaysian news portal or blogs.

Western media hungry for story like this seemed to have avoided the convicted killer like a leper. Not a single reputable Western media have published the story. The Australian media known for its rapacity for this kind of news have not had a single mention of the story.

Why are the Western media giving Sirul a wide berth and our Malaysian news portals and opposition leaders were having agonising orgasms of Sirul's story. A story from a man whose life hang by the thread, a convicted murderer who now openly admitted to the crime and a crime committed with recourse, but he has not named the person that order the execution.

In the West, I believe they are more conscientious that a convicted killer not be allowed to profit by selling his/her story.


Who did Sirul speaks to? 

There is no guessing who needed this kind of story the most for political mileage.

Saril's interview was with Malaysia's most popular pro-opposition news portal...Malaysian Insider and Malaysiakini, the most partisan and lopsided newsmakers with irrefutable loyalty to the opposition's cause. The disclosure have generated a raging thunderstorm among opposition leaders and their supporters.

How do you reconcile the irony of this convicted felon's conflicting statements............ that he obeyed order from higher up to kill Altantuya, but on the other hand said he had not admitted to the murder. 

He questioned the method he was convicted making it sounds as if circumstantial evidence used by the court was wrong. Many murderers from all over the world had, in the absence of direct evidence, been convicted on circumstantial evidence.

That was his story, but more mystifying is......... who let the horse bolted?

How did Sirul get his passport? How did he manage to pass through the immigration's blacklist? Was his name on the black list in the first place, or someone removed it to make it easy for him to escape? All these are questions left unanswered. 

How could a convicted murderer like him escape detection by the Immigration Dept when bankrupts and people who can't pay up their income taxes are barred from leaving the country, but a convicted murderer can leave the country without hindrance?

Shouldn't the Director of Immigration be hauled up to explain how the horse bolted the stable?

In most cases you do need a motive to kill someone. Most of the time you kill to cover your crime leaving no witnesses behind.

Sometimes, rapists killed their victims if they are known to the victims to cover the crime, as they say "dead man tells no tales"

Why are many Malaysians in ecstatic overdrive?

Is it showing that PM Najib has become very unpopular with the people?

Anwar: Blow by Blow

By Gopal Raj Kumar

ANWAR: CONVENIENTLY FORGOTTEN TRUTHS ABOUT THE MAN AND MYTH

1. Anwar Ibrahim did nothing to reform the system when he was an insider. And mind you, he was sitting at its apex and even acting as prime minister between May and July 1997.He did nothing towards a repeal of the ISA, OSA, Emergency Ordinance or Sedition Act. Nor did he roll back the restrictions imposed by the Societies Act and the UUCA.
2. In the 16 years that Anwar was rising up the Umno ranks until he was a heartbeat away from the very pinnacle, he made no changes for the better from the inside. On the contrary, it was he who poisoned Umno’s well through expanding and entrenching the culture of patronage and money politics.
3. He is no democrat. In 1995, the Umno general assembly decided that the top two posts should not and would not be contested in its 1996 party election.

The assembly instructed that only Dr Mahathir Mohamad and Anwar could be nominated for president and deputy president respectively. Anwar was deep in the bowels of the BN system that has been dubbed a “guided democracy”.

Neither is Pakatan democratic. In the DAP, the first families of Lim and Karpal rule like as if the party is their personal fiefdom.

Guan Eng’s younger sister Hooi Ying is Penang DAP secretary. Three of Karpal’s children – Jagdeep, Gobind and Ramkarpal – are YBs. Ramkarpal was gifted an inheritance of his father’s Bukit Gelugor Parliament seat.

As for the PKR first family, Daddy is Anugerah Tuhan aka ketum parti, Mommy is president and Oldest Girl is vice president. There’s even talk of Younger Girl being given the chance to contest Permatang Pauh, previously rotated between her parents.

What democracy are Pakatan people talking about?!

4. Anwar was so Machiavellian in the ruthless way he toppled Ghafar Baba. Anwar was confirmed twice as Umno deputy president – in the 1993 and 1996 general assemblies.

He planted cells everywhere, appointing his coterie to vital and pivotal positions in the superstructure of the state. He was like a giant octopus with tentacles spread over the Umno machinery and the entire government bureaucracy. In short, he was a control freak.

Side note:

Man-in-a-hurry Anwar only served as Dr M’s deputy in Umno for five years (1993-1998) before trying to oust his boss. Unlike the treacherous Anwar, Tun Razak was a loyal deputy to Tunku Abdul Rahman. Tun Razak was Umno deputy president for 20 years (1951-1971) until Tunku resigned his party presidency in June 1971.

5. True, Anwar was infamously given a black eye by the IGP but he was certainly not “beaten to within an inch of his life” as his declared by his lawyer. Reminder:A member of the Bar is not an aspiring novelist (or is he?). Hence he should always endeavour to be more factually precise in his expression and refrain from engaging in hyberbole.

Anwar, on the other hand, is an acknowledged drama queen. If you’ll recall, he had also alleged that he was being poisoned with arsenic. Oh, and the stage props – that ubiquitous neck brace and the wheelchair

Read more here.