As previously reported on this blog, 2010 was a very bad year ( or good year depending on how one looks at it) for Malaysia’s financial system, which in that year suffered record leakages,or illicit outflows, of about USD 64 billion, approximately USD 20 billion of which appears to be attributable to the 1MDB theft.
That money must have gone somewhere, and given the number of Singapore banks that found themselves entangled in the 1MDB theft, it is only logical to look south. As it turns out, 2010/11 was for Singapore a very good year.Between the end of the 2010 and 2011 the “Provisions & Other Liabilities” item in the Singapore MAS Balance Sheet fell by $15 billion, from about $102 billion to $ 87 billion.Between 2009 and 2010 that figure had grown by $20 billion.
Singapore has yet to account for the millions if not billions in Singapore bank accounts frozen as a consequence of i
ts investigation into the 1MDB theft,and it does look as if Singapore might be playing for keeps.