Friday, October 5, 2012

WHAT IS THE RATIONALE FOR THE ACQUISITION OF THE IPPs BY 1MDB


Over the next few days I will be sharing with you some information and explanations on why 1MDB made an acquisition of the IPPs.

Energy has always been one of the core focus areas for 1MDB

At the moment, there is a supply  demand imbalance in power hungry countries like Malaysia as well as other countries such as Egypt and Bangladesh, which makes going into the power business a lot of sense.

The acquisitions are 1MDB’s first steps towards1MDB fulfilling the government’s aspiration to drive sustainable energy security in the long term.

Critical to economic growth is electricity supplies that are free of interruptions and shortages so that businesses and factories can work unimpeded.

As a strategic development company wholly owned by the Government, 1MDB is in a strong position to create new synergies.

1MDB can leverage on its unique new private-public sector dynamics to further strengthen energy supply by creating a more competitive market and reducing energy subsidy in stages as envisioned in the New Energy Policy.

In my next posting I will share with you information on how much did 1MDB pay to acquire both the IPPs, did the Government (or rakyat's money - as claimed by the opposition) gave them any money? 

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