1MDB should disclose what needs to be disclosed, says CIMB chairman

CIMB Holdings Bhd chairman Datuk Seri Nazir Razak supports Bank Negara's view that 1MDB does not impose any risk on the country's financial system and the movement of the ringgit.1Malaysia Development Bhd (1MDB) should disclose what it should, says CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak.

"We need to put the concerns to rest. Probably we should disclose what needs to be disclosed for people to have the full picture of it," he told reporters after CIMB group’s annual general meeting today.

Even though he opined that 1MDB would not pose any systemic risks to the country’s banking and financial system, he said it is good "to put the issue behind" as early as possible as 1MDB is impacting investors sentiment towards Malaysia and the sentiment on the ringgit.

Nazir, however, said he has no idea how to resolve 1MDB’s issues.

On speculations that he has disagreements with his brother Prime Minister Datuk Seri Najib Razak, who is also the Finance Minister and the chairman of 1MDB’s board of advisers, Nazir said it is normal to have disagreements with brothers.

"We are brothers. There are agreements and disagreements. It is healthy and it is normal," he said.

He also explained it was the Ministry of Finance's decision to forgo the strategic sale option of 1MDB’s power assets a few days after the CIMB Group was appointed as adviser. 1MDB is fully owned by the ministry.

Meanwhile, CIMB group chief executive officer Tengku Datuk Zafrul Tengku Abdul Aziz said the overall loan growth target for the group is at 10%, after taking consideration of its businesses in Malaysia and in the region. – The Edge Markets