Malaysia

Kuala Lumpur can give up Malaysia Airlines

21 March 2019

The flag carrier has been losing cash for years. Now Premier Mahathir Mohamad is asking if it should fly at all. State-meddling has hampered a turnaround and there’s too much local capacity. Folding the airline would show that his government is ready to rein in the state.

Goldman Sachs will spend 2019 in velvet handcuffs

18 December 2018

New boss David Solomon starts the year with a mission to grow, lots of ambition and a crosstown rival that has steadily upped its game. A big deal – say, buying an asset manager – could help Solomon vault ahead of Morgan Stanley. That’s if the 1MDB scandal doesn’t bind his hands.

Wall Street could use remedial lectures on culture

17 December 2018

The New York Fed’s push to improve industry behavior deserves top watchdog billing. Goldman’s 1MDB mess is only one reminder the message hasn’t totally sunk in. Slower economic growth in 2019 could expose more lapses. It’s a good time for boss John Williams to badger his charges.

Goldman Sachs could wind up paying twice for 1MDB

28 November 2018

Abu Dhabi’s sovereign fund is now suing the investment bank for its role in the Malaysian scandal. Damages being sought could exceed Goldman's average net profit of $5.4 bln. U.S. authorities may want a piece, too. The longer this drags out, the worse the financial fallout looks.

Malaysia claim of Goldman cheating is a bit rich

21 November 2018

Prime Minister Mahathir Mohamad’s administration says the country was deceived and wants back $600 mln the investment bank made arranging bonds for disgraced 1MDB. Goldman’s compliance was weak, but the last regime knew what it was buying. There’s plenty of blame to go around.

The Exchange: 1MDB, Goldman, Jho Low and Leo

19 November 2018

The new book “Billion Dollar Whale” chronicles the Malaysian mega-scandal involving Goldman Sachs and Leonardo DiCaprio. Co-author Tom Wright joined Breakingviews in Hong Kong to discuss how alleged mastermind Jho Low pulled it off and what the saga’s next chapter may bring.

Goldman has half a defense in 1MDB mess

14 November 2018

Two former executives accused in the Malaysian corruption scheme openly lied to the bank, U.S. authorities say. Rival firms have found leniency in similar cases. But an indictment also cites a culture that favored deals over compliance. That could warrant a deferred prosecution.

Goldman gets no closure from banker’s 1MDB plea

1 November 2018

Former star banker Tim Leissner pleaded guilty in the Malaysian money-laundering scheme. The firm can cite his lies and deception. But fat fees from bond offerings should’ve raised red flags. U.S. authorities have punished Wall Street for past examples of poor oversight.

Budget tests mettle of Malaysia’s mavericks

1 November 2018

Mahathir Mohamad's government is set to present the $300 bln economy's most significant blueprint in decades. It needs to burnish reform credentials and soothe rating agencies. Outlining a credible tax plan will be a start; a plan to reduce the state's role is the bigger prize.

Review: Malaysian heist hides deeper moral

21 September 2018

“Billion Dollar Whale” tells how a chubby twentysomething stole a fortune and partied his way around the planet, ultimately bringing down his country’s prime minister. Behind the exploits, however, lies a darker story of how global capitalism facilitates fraud and fuels excess.

Malaysia’s China reset imagines Byte and Road

20 August 2018

After months of fighting talk, Prime Minister Mahathir Mohamad is striking a softer tone. His PRC visit began in Alibaba's hometown of Hangzhou and included a new-energy deal with carmaker Geely. That suggests an effort to extract tech aid in exchange for infrastructure projects.

Silk Road speed bumps show limit of yuan diplomacy

13 July 2018

There is trouble along Beijing's trillion-dollar trade route. From the Maldives to Malaysia, politicians are calling to review deals, fretting over debt and dependence. Domestic politics are driving the backlash, making it tough to turn economic might into lasting influence.

Malaysia taps brakes along China’s Belt and Road

5 July 2018

Prime Minister Mahathir Mohamad has suspended work on a $20 bln rail link between his country’s east and west coasts. It’s a rare setback for Beijing's massive infrastructure initiative. The project's importance, though, means Kuala Lumpur can afford to fight for a better deal.

1MDB trial is just start of Malaysian war on graft

4 July 2018

Former Premier Najib Razak has been charged in connection with the $6 bln scandal. The swift action is commendable. Deeper change is needed to reassure investors, though. That means measures like forcing politicians to declare assets, and regulating party funding.

Guest view: Beware emerging market storm clouds

22 June 2018

A new period of mounting risks and uncertainties looms on the horizon for developing economies like Turkey, Malaysia, Brazil and Mexico, argues former Citibank executive William Rhodes. Rising price volatility and pressures on a range of currencies are merely the warning signs.

Malaysia’s 1MDB purges may hurt before they help

6 June 2018

The central bank is the latest institution caught in the backlash over the disgraced wealth fund, with the mooted departure of its governor. More heads will roll in the bureaucracy and beyond, creating extra uncertainty just as external pressures mount and fiscal plans shift.

1MDB scandal could yet bring some critical closure

4 June 2018

As Malaysia's new prime minister reexamines a case the top U.S. lawman called "kleptocracy at its worst", a Breakingviews e-book recounts the sovereign fund’s rise and fall. Lessons for banks, money managers and politicians will be even sharper if ringleaders are held to account.

E-book: 1MDB

4 June 2018

The Malaysian scandal once called “kleptocracy at its worst” is being freshly investigated following the country’s shock election outcome. Breakingviews chronicles the sovereign fund’s rise and fall, and the potential repercussions from Kuala Lumpur to Wall Street. Read online or download the book.  

EMI deal calls out to 1MDB bounty hunters

24 May 2018

Sony is taking control of EMI Music Publishing. The sale could mean a $420 mln payout to financier Jho Low. U.S. prosecutors allege he used funds stolen from Malaysian fund 1MDB to make the purchase. That’s a temptingly huge sum for authorities in both countries to pursue.

Viewsroom: 1MDB rears head in Malaysian election

16 May 2018

The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.