Malaysian Prime Minister Najib Razak, who is reeling under attack over debt-laden sovereign fund 1Malaysia Development Bhd (1MDB), has just been handed another headache.
Portfolio investors and bankers are panning the acquisition of plantation and sugar assets owned by Indonesian tycoon Peter Sondakh by state-controlled Felda Global Ventures Bhd, Malaysia’s largest listed plantation.
The deal is seen as hugely expensive for Felda, whose shares plunged to a record low this week, and could wipe out its cash reserves. It also smacks of a bailout for Sondakh.
It is but more ammunition for those out to remove him from office.