Certain politicians have blown issues surrounding 1MDB out of proportion in an attempt to topple the federal government, Prime Minister Najib Abdul Razak told a group of domestic and foreign investors today.

In his opening speech at InvestMalaysia 2017, Najib said the government had acknowledged there were lapses in 1MDB's governance, and he had personally given instructions for a rationalisation of the company's operations.

"But let's not forget that while there were issues in 1MDB, certain politicians blew them out of proportion, and tried to sabotage the company, in an attempt to topple the government in between election cycles.

"At the time we knew the real issue was not 1MDB, and that if 1MDB hadn't been around they would have chosen another line of attack to try to illegitimately change the government," Najib told some 900 representatives from over 150 local and foreign companies.

As a result of the ongoing 1MDB rationalisation efforts, Najib reiterated that many assets formerly owned by 1MDB are now thriving.

"One only needs to drive past Tun Razak Exchange to see the new construction for confirmation," he added.

The 70-acre project, located on prime land next to Bulatan Pandan in Kuala Lumpur, was formerly a key asset for 1MDB, which acquired the land from Putrajaya at RM194.1 million in 2010.

As part of 1MDB's debt restructuring exercise, Second Finance Minister Johari Abdul Ghani had in December last year said the project touted as a future hub for Islamic Finance, with a gross development value of at least RM40 billion, is now a government undertaking.

Najib, meanwhile, also compared his administration to former premier Dr Mahathir Mohamad's and alluded to how various bailouts of GLCs during the nonagenarian's 22-year rule had allegedly benefited only a few selected individuals.

"This is also one of the reasons I am not very popular with that certain nonagenarian.

"Under his leadership, many corners were cut, and the Malaysian people had to pay a very high price so that a few of his friends benefitted, even when symbols of national pride had horrendous and catastrophic decisions inflicted on them," he said.

'No more sweetheart deals'

Unlike during Mahathir's era, Najib today sought to reassure investors that his government will be cracking down on crony capitalism.

"No more sweetheart deals. No more national follies kept going to stroke the ego of one man.

"No more treating national companies as though they were personal properties," he stressed.

First held in 2005, this year's Invest KL is hosted by CIMB, represented by its chairperson person Nazir Razak who delivered the welcoming address.

This year's event is themed Malaysia at 60: Maximising Potential, also in conjunction with the nation's 60th independence anniversary celebrations.