1MDB Global Investment Ltd (1MDBGIL), a subsidiary of 1Malaysia Development Berhad (1MDB), will have to settle a RM11.1bil (S$4.17 bil) loan from internal sources before the Government steps in to assist.
"1MDB Global Investment Ltd is required to use the company's internal funds, including all its assets, first.
"Only if all these steps have been taken and the company is still lacking funds to solve that particular loan will the Government's letter of support come into effect," Datuk Seri Najib Tun Razak said in a written reply to Tony Pua (DAP-Petaling Jaya Utara).
The question centres on the subsidiary's bond issuance last March to raise US$3bil, of which the Government had provided a letter of support.
The money raised via the bonds was to have been used by 1MDBGIL to invest in the Abu Dhabi Malaysia Investment Company.
However, the money was subsequently used by 1MDBGIL as working capital and to repay loans.
In another written reply, the Prime Minister, who is also Finance Minister, said that Malaysian businessman Low Taek Jho was never employed by the state-owned strategic investment fund.
"All 1MDB business decisions and dealings are conducted by the management and the 1MDB board of directors," he told Datuk Dr Tan Kee Kwong (PKR-Wangsa Maju).
Earlier this month, Najib directed the Auditor-General to conduct a probe into the accounts of 1MDB, which had accumulated debts amounting to RM42bil since it was started in 2009.
Meanwhile, industry players in the logistics and services sector will be able to access some RM5.3bil worth of schemes from April 1 under the Logistic and Trade Facilitation Master Plan and the Services Sector Blueprint.
Najib said the master plan was formulated to stimulate more exports within the sector.
"It is expected to generate some 146,000 new jobs, with most categorised as highly skilled talent by the year 2020," he said at the launch of the plan and blueprint in Parliament yesterday.
To further accelerate the master plan, the Government has allocated RM300mil to improve its last-mile connectivity to Port Klang and another RM12mil to upgrade the Padang Besar railway terminal.
A National Logistics Taskforce, comprising 12 ministers as well as relevant agency heads, has also been set up to lead the development.