1MDB’s assets sale proceeds to go to consolidated funds

by SHAHEERA AZNAM SHAH / TMR file pix

The proceeds from the recovery and disposal of 1Malaysia Development Bhd’s (1MDB) assets will be parked under the government’s consolidated funds.

Finance Minister Lim Guan Eng said the processes of disposing the assets are being handled by the Attorney General (AG) Tommy Thomas.

“The monies derived from the disposal of (1MDB) assets will have to go to the consolidated funds, which will be channelled later to the relevant trust accounts when they are proven that they belong to 1MDB,” he said at a press conference in Putrajaya yesterday.

He said the AG will make the announcements on the assets which are currently being disposed of.

“It is only appropriate for the AG to announce which asset is currently set to be disposed of and all related matter will have to refer to him,” he added.

Meanwhile, Lim said the government is terminating the recently announced policy that requires employers to pay only 20% of the annual RM10,000 levy for the extension of each foreign worker.

He said following the decision, the extension levy will have to be fully borne by employers.

The move, he said, was based on feedback that foreign workers are not able to pay the remaining 80% cost of the levy.

“Recently we announced that foreign workers were allowed to extend their working tenure for three more years if they have worked in Malaysia for 10 years to assist employers to secure skilled workers.

“However, a local daily reported today that the foreign workers are unable to pay their portion of the extension levy. The government has decided to return to the previous policy which requires only employers to pay the full cost of the levy,” he said.

Yesterday, Lim announced that the extension levy of RM10,000 for skilled foreign workers will be borne both by employers and workers with a rate of distribution of 20% and 80% respectively.

Lim said the policy is only applicable for foreign workers who have worked in Malaysia for 10 years and they have opted for a permit extension of a maximum of three years.

He said the ministry has received complaints from employers over the extension levy and the high cost related to the measure.

He added that the annual levy prior to the extension tenure remains at RM1,850 and will be borne by the employers.