Tell us more, 1MDB!

Not easy to comprehend!

Any ordinary layman would question 1MDB's RM665.3 million loss on the back of its 'diversified investments, increased revenue and quality asset base'. At least we know how Malaysian Airlines registered continuous losses but not the government's investment company.

And why must we invested in a place like Cayman Islands when even New Caledonia offers better investment package?

1Malaysia Development Bhd (1MDB), a strategic development company, wholly-owned by the Malaysian government, posted a loss of RM665.3 million for its financial year ended March 31, 2014.
Total revenue increased by 64 per cent to RM4.3 billion from the RM2.6 billion registered in the previous year, reflecting the quality of the portfolio of assets being built and the strength of revenue generation.
In a statement today, it said the loss was largely attributable to higher finance costs of RM2.4 billion, compared with RM1.6 billion in the last financial year, as part of its strategy to grow the asset base.
"The value of the group's asset base had increased to RM51.4 billion, compared with RM44.6 billion in the previous year, with borrowings increasing RM36.2 billion to RM41.9 billion," said 1MDB.
The group also said the high quality asset base is backed by strong cash and cash equivalent reserves of RM16.7 billion and as such, the business was well positioned to fund significant capital expenditure over the next 12 to 24 months, with significant headroom to meet future funding requirement.
Managing Director and Chief Executive Officer Mohd Hazem Abd Rahman said the company had maintained its focus on growing the company's asset base and investment capacity.
"We are confident that the high quality nature of the assets acquired and projects secured will drive the business going forward and ensure its growth in the long-term," he added.

Major areas of focus for capital expenditure in the next financial year includes projects secured within the energy division and the continued development of TRX, Kuala Lumpur's first dedicated financial district, within the group's real estate division, he said.

Meanwhile, 1MDB said for the financial year ended March 2014, it had redeemed over RM4 billion from investments in Segregated Portfolio Companies registered in the Cayman Islands, with the balance expected to be fully redeemed by November 2014.

The company said it had also received a dividend of RM435 million from the investments, subsequent to the financial year 2014, and will be accounted for in the next financial year ending March 2015.

And what do you mean by 'higher finance cost' in order to strengthen the asset base?

Show the financial portfolio, will you?