Malaysia's 1MDB at Risk of Default

The transcript discusses the financial and political turmoil surrounding 1MDB, a Malaysian state fund, and its default on a $1 billion payment. The situation has significant implications for Malaysia's economy, with bond prices slumping and plans to sell Islamic bonds. The scandal also affects Prime Minister Najib Razak, linked to 1MDB and a separate political scandal involving Saudi donations. His brother, Nazir Razak, is scrutinized for distributing funds to politicians. A parliamentary committee identified over $4 billion in questionable transactions by 1MDB, with IPIC denying ownership of a company involved.

What was the main reason for the default involving 1MDB and the Finance Ministry of Malaysia?

• A drop in global oil prices

• A political scandal involving the Prime Minister

• A failed investment in Abu Dhabi

• A missed payment of over $1 billion

How did the 1MDB default affect Malaysia's bond market?

• Bond prices increased significantly

• Bond prices were unaffected

• Bond prices slumped to the lowest since November

• Bond prices remained stable

What action did the Malaysian Central Bank take regarding 1MDB?

• They provided a bailout to 1MDB

• They warned the government about financial risks

• They increased interest rates

• They imposed sanctions on 1MDB

What was the nature of the political scandal involving Prime Minister Najib Razak?

• Illegal arms trading

• Misuse of public funds for personal gain

• Receiving $681 million in donations from the Saudi royal family

• Involvement in a foreign espionage case

What did the parliamentary committee identify regarding 1MDB's transactions?

• They were mostly charitable donations

• They were all legitimate and above board

• They were primarily domestic investments

• They involved over $4 billion in questionable transactions