New appointment at Malaysia's controversial state-backed fund ignites concerns

Singapore

THE bewildering and sudden helm change at Malaysia's controversial 1Malaysia Development Bhd (1MDB), more so as the state-backed fund prepares for a delayed but desperately-needed stock offering of its energy assets, has roused concerns that the fund's financial woes may be deepening.

The top management change is the second switch since 1MDB's inception, which is deemed one too many for a fund that's merely five years old and has also has changed auditors twice over this period.

The appointment of investment banker Arul Kanda to 1MDB's hot seat - he succeeds Mohd Hazem Abdul Rahman, a low-key per…