Former Selangor menteri besar Abdul Khalid Ibrahim believed that 1MDB's "rationalisation" exercise is making good progress and that talks of having to bail out the company were "irrelevant".

Khalid, who once headed Permodalan Nasional Bhd and Kumpulan Guthrie Bhd, said this conclusion was made following the briefing by 1MDB CEO Arul Kanda Kandasamy on Monday.

"It must be pointed out that while the Public Account Committee (PAC) successfully evaluated 1MDB's operation but it was not clear if the company was sustainable.

"At the discussion, Arul Kanda briefed us on the current financial position showed us the balance sheet of the 1MDB following the restructuring plan enforced by the management...