fbpx
Connect with us

Social Stories

1MDB Debt To Cost M’sia An Additional RM7.7 BILLION Due To Ringgit’s Depreciation Against USD

Published

Feat Image 1Mdb Debt Ringgit
Source: The Sun Daily & Reuters

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

The recent depreciation of the Ringgit’s value may have an unwanted effect on the repayment of Malaysia’s 1Malaysia Development Bhd’s (1MDB) debt as it may end up costing our country an additional RM7.7 billion. This is according to former Finance Minister Lim Guan Eng who urged the government to adopt structural economic reforms to stop our currency’s rapid descent.

In a statement yesterday (17 September 2022), Lim said that the government will have to pay an extra RM7.7 billion to repay the principal of the three tranches of US dollar bonds totalling USD6.5 billion that Goldman Sachs had arranged for 1MDB. The USD6.5 billion dollar bonds issued in 2012 (USD1.75 billion at 5.75% per year and USD1.75 billion at 5.99% per year) and 2013 (USD3 billion at 4.4% per year), are due in 2022 and 2023 when the strength of the US dollar is at its highest in 24 years.

 - World Of Buzz

Former finance minister and mp for bagan, lim guan eng.

Lim, who is also the Member of Parliament (MP) for Bagan further elaborated that at RM3.35 to the USD when the three 1MDB USD bonds were issued, the principal amount of USD6.5 billion would come up to about RM21.8 billion. However, at the current exchange rate of RM4.54 to the USD, the principal amount due for the USD6.5 billion would be higher at RM29.5 billion or RM7.7 billion more.

Moreover, cumulative interest would have totalled just over RM1 billion a year and RM10.5 billion in the past decade. Hence, a weaker Ringgit this year means that the annual interest cost is around RM1.5 billion instead of RM1 billion. As of the time of writing, the Ringgit dropped to a 24-year low of RM4.54 against the US dollar and also recently dipped to a historic low of RM3.26 against the Singapore Dollar whilst the Indonesian Rupiah has appreciated by more than 4% this year against the Ringgit.

So, what do you guys think of this statement by the former Finance Minister? Share your thoughts with us in the comments!

 

Also read: “He was as red as grilled prawns” – Najib’s Lawyer Says That Najib Looks More Miserable Than Before

Ft Shafee

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

Feat Image Death Feat Image Death
News9 hours ago

18yo Teen in Penang Dies from Electrocution While Charging His Smartphone Using Socket on Express Bus

A teenager has tragically died in Butterworth, Penang, after he was electrocuted while charging his smartphone using a socket onboard...

Feat Image Twin Tower Feat Image Twin Tower
News12 hours ago

M’sian Activist Urges KLCC Twin Towers be Renamed “Sabah & Sarawak” in Honour of The Borneo States

Malaysian activist and founder of Saya Anak Sarawak (SAS) Peter John Jaban has urged for the KLCC Twin Towers to...

Collage 13 Collage 13
News12 hours ago

“They’ve been here over 3 months” – Foreign Beggars at Johor Pasar Malam Make up to RM12,000 a Month

Foreign beggars are making up to RM12,000 a month at a night market in Johor. In an official statement by...

Feat Image Parking Fine Feat Image Parking Fine
News14 hours ago

M’sian Vehicle Owners with Unpaid Parking Fines Face CTOS Blacklist as They’re Now Added to The System

The Miri City Council (MCC) has introduced a new measure to ensure that vehicle owners in Sarawak’s second-largest city adhere...

Feat Image Arrest Feat Image Arrest
News14 hours ago

Thai Police Arrests Famous Kelantanese Female Celebrity at Golok Hotel for Possession of 6,000 Meth Pills

A popular Kelantanese female singer was arrested by the Thai Police at a hotel in Golok, Narathiwat, north of the...

Collage 12 Collage 12
News17 hours ago

Kelantan Govt Says Cinemas in the State Must Play Movies With Lights On to Prevent ‘Unhealthy’ Activities

After a few decades, Kelantan remains one of the states in Malaysia that don’t have cinemas. The state government, however,...

Feat Image Indo Ban Pixel Feat Image Indo Ban Pixel
News2 days ago

“Who’s next?” – After Apple iPhone 16 Series, Indonesia is Now Banning Google Pixel Smartphones in The Country

Previously, we shared how Apple’s latest flagship smartphone series, the iPhone 16 Series, is currently banned from being sold in...

Feat Image Bnm New Rule Feat Image Bnm New Rule
News2 days ago

Bank Negara Now Requires All Money Changers in Malaysia to Record Full Name & IC Number of Customers

If you’re planning on visiting your local authorised money changer before that overseas trip to change Malaysian Ringgit banknotes to...

Announcement

Latest Videos



TRENDING TODAY