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1MDB does not pose systemic risk to govt finances: Moody's

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Malaysia's economy, its banking system and government finances are not under systemic risk from developments at state fund 1MDB, rating agency Moody's said on Monday.

[HONG KONG] Malaysia's economy, its banking system and government finances are not under systemic risk from developments at state fund 1MDB, rating agency Moody's said on Monday.

A Wall Street Journal report on Friday said investigators had traced nearly US$700 million to bank accounts they believed belonged to Prime Minister Najib Razak. The prime minister has denied taking any money from state funds for personal gain.

Moody's said the rise in political friction has not affected the government's stance on fiscal reforms.

Two of Malaysia's main opposition parties on Sunday demanded an emergency sitting of parliament to discuss the prime minister's future. On Monday, stocks declined while the ringgit slumped to a fresh low.

REUTERS

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