1MDB investment strategy could raise more hackles

[SINGAPORE] Malaysia's state-backed 1Malaysia Development Bhd (1MDB) has lodged its long-awaited and delayed accounts for the year ended March 2013, but the headline figures could raise more hackles over the fund's investment strategy.

According to 1MDB's latest filing to the Companies Commission of Malaysia, it has accumulated some RM42.3 billion (S$16.33 billion) of debt as at end-March 2013, up sharply from RM8.4 billion the previous year.

For the financial year under review, the fund, which is wholly owned by the country's Ministry of Finance, turned in a profit of some RM778 million, up significantly from RM45 million a year ago.