Deputy Finance Minister Chua Tee Yong cited the positive performance of foreign direct investments (FDI) to rebut concerns raised by rating firms amid a recent 1MDB default on payment of bonds.

"In 2014, we recorded a total of RM35 billion FDI. However, In 2015, the FDI increased to RM43 billion," Chua told the Dewan Rakyat during the question-and-answer session today.

"In the first quarter of 2015, We had RM9.9 billion FDI. In the same period this year it increased to RM15 billion.

"This shows that foreign investors still have confidence in the country," he stressed.

Hatta Ramli (Amamah-Kuala Krai) had asked him to release the FDI statistics, which are an indicator of the state of the country's economy. This follows concerns of rating firms over 1MDB's performance.

Hatta said both the Fitch Ratings and Standard & Poor's had voiced concern that the 1MDB issue may impact the stability of the country.

However, Chua was not able to give figures relating to FDI that had left the country, saying he had no records regarding this, off-hand.

1MDB had failed to pay US$50.3 million in interest on a bond, amounting to US$1.75 billion, last month.

Another default occured on the coupon payment for its US$1.75 billion bond due on May 12.

Both bonds are guaranteed by Abu Dhabi-based International Petroleum Investment Company (IPIC), which is engaged in a dispute with 1MDB over billions owed to IPIC. It has since paid the outstanding sums on 1MDB's behalf.

Fitch had expressed concern that the default on payments to bondholders by 1MDB last month could lead to weaker focus on policy and political instability in Malaysia, though it noted there is little sign of these risks materialising as yet.

It added the risk was low despite the fact that a default of the bonds in 2022 could trigger a cross default on 1MDB a government-guaranteed US$5 billion sukuk in 2039.

“Payment under the guarantee would only be required if bondholders vote to require acceleration under the cross-default clause.

“We believe that there is unlikely to be a majority among bondholders for acceleration,” it explained.

Fitch said 1MDB would only drag down sovereign ratings if it impedes Malaysia’s efforts to cut the deficit, keep federal debt in check, and spook investors.