Now almost 6 months ago, I have been alarmed by the level of national debts and wrote this. According to Singapore's Today, Dow Jones reported that 21 more government bonds auctions (really it means rakyat debts committed by temporary administrators on their behalf without getting rakyat's consent), 1/3 more than this year, to raise money to spend on 131 "key projects" (which should include the much objected Menara Warisan Merdeka).
Malaysians are expected to owe another RM90 billion from debts raised in 2011 alone; the years and years of accumulated debts as at 2008 alone was already RM213 billion.
In 2011, Najib's administration will almost double our debts and subject us to more foreign exchange risks. The loans are for infrastructure and property projects - not a whimper about healthcare, human capital development, education .... the soft skills so vital nowadays and Malaysians so lack of it nowadays.
When Najib gleefully announced his election budget for 2011, I wondered where the heck the money is going to come from, given the declining oil revenue and foreign as well as local investments; the apparent answer now, bluntly and without apology, shrinks my balls.
I do not know if the "projects" will generate enough revenue to repay the principals and interest and have enough crumbs for the rakyat to feed on. Who are going to rent the Menara Warisan Merdeka? Will KLCC become another Menara Dayabumi ghost building? Will the other commercial buildings owned by Malaysians be deprived of its existing tenants? Simple questions and no answers.
What I do know is that tax payers' money which could be used for hospitals, subsidy on food and medical supply, schools, street lighting, flood preventation, crime fighting, living expenses assistance to the handicap and aged will be forgone.
What I do not know is who are the financial service professionals that will earn a lot of fees from organising the loans? 
What will the rakyat get? According to Dr Kua Kia Soong in his writing entitled "Defence Ministry on a spending spree", RM1 billion can built 100 hospitals or 1,000 new schools or 10,000 new homes. So next year when the government borrows on average almost twice a month to raise RM90 billion, we will forgo 9,000 hospitals, 90,000 new schools or just 900,000 new homes. And we have people waiting for months just to have an appointment with public hospitals.
I know Najib did some lab studies on the ETP, NEM and what not. I did a low budget lab on my own. I asked a kindly old lady who should be more knowledgeable than me.
I asked her, "madam, what would you say to me if I were to borrow in your name without your consent, spend it on something that would not benefit you but you will just spend years and years of your life paying the debt off and not getting your medicines, better quality food and other necessitites of life."
The result of my lab study is as follows:
Great article. Lets do the Revolution.!!!
ReplyDeleteI love the pic!!
ReplyDeleteLOL!!!
I wonder how we hope to pay off the debt. This administration is so careless that they spend the money today and expect the future generations (tin an 's') to pay. I think we are taking the road of the Philippines.
ReplyDeleteBN is really irresponsible. Although I was once a youth leader at branch level of MCA, I have since given up hope that one day BN will change for the better.
How do you expect a BankruptingNation led by the UtterlyManipulatingNationalObligation ByAbusingRakyat'sUrbanity with Malaysian ChineseAssociates and MalaysianIndianCohorts to do a good job????
ReplyDeleteEach Prime Minister, upon taking charge, always comes out with his own individual slogan calling for this and that but at the end of the day these slogans failed miserably, the situations get worse economically,racial disunity and religious intolerance worsen, and the institutions deteriorate into just "yes man" to the "powers" that be. Corrupt, Corrupt, Corrupt is the name of the game......
http://malaysia-today.net/mtcolumns/from-around-the-blogs/36691-national-debts-this-is-getting-a-bit-serious-now#comments
ReplyDelete...
written by StevenO, December 15, 2010 21:46:23
The only way to reduce the National debt is to take over the Federal Government and freeze the foreign bank accounts of those corrupt politicians and recover the stolen money!
+1 ...
written by Eskay345, December 15, 2010 20:59:26
"Serious" is never in the Ameno vocabulary.
Therefore, unless the country is already in technical bankruptcy, the situation is not serious.
So they spend, spend and keep on spending like nobody's business knowing jolly well that the "bodoh punya rakyat" who voted them into power will have to pay for it.
+5 ...
written by lelong _sick, December 15, 2010 18:41:21
A vote to Najib/BN is an endorsement to FFFF First Lady to continue plundering Malaysia..
Say No to BN and No to FFFF First lady!
+5 ...
written by Voter get Voters 1, December 15, 2010 13:07:14
Y all d complaining, groaning,moaning n bitching ???
Just spent more time to get MORE people to Vote for PR lah. Simple is'nt it ?
I did it and convince at least 100 already
+42 ...
written by justice seeker, December 15, 2010 12:50:37
Malaysians are expected to owe another RM90 billion from debts raised in 2011 alone; the years and years of accumulated debts as at 2008 alone was already RM213 billion.
In 2011, Najib's administration will almost double our debts and subject us to more foreign exchange risks.
IN A FEW YEARS TIME, WE WILL BE SENDING OUR WIVES AND DAUGHTERS TO INDON AS MAIDS
WHEN OUR RINGGIT BECOME WORTHLESS.
+30 ...
written by Bellboy263, December 15, 2010 11:53:49
A moronic imbecile government with no vision' A den of thieves'
+35 ...
written by temenggong, December 15, 2010 11:38:01
It is more than serious. It has reached critical levels. Why, because our economy will also collapse without borrowing! IOW, damn if you do, and damn if you don't.
Malaysian foreign debt by the end of 2011 will be 65% of the GDP. For Ireland which has a far more robust economy (and EC support) than us went into technical 'bankruptcy' when their debt reached 65% of their GDP. So we are on the very threshold. This means bankruptcy can can take place anytime in 2011 onwards!
Other nations like the US, Japan and Britain have higher ratios of debt to GDP but their economy is far more industrialised and resilient than ours, and therefore we cannot compare with it.
The bottomline is this; can we pay our bills as they arise? The answer is even as now we cannot even pay operating costs of the government without income from Petronas, let alone development expenditure. And Petronas' fortunes are declining. Operating expenditure means govt salaries, pensions, and their daily operating bills.
Now we have all voiced our concerns for some years but no one seems to listen. The best medicine is to intentionally go into bankruptcy so that the IMF can take over and run this country. The Malays deserved to be colonised again. Their leaders have been most imbecilic.
This month the Singapore economy overtakes Malaysia for the first time in history. That's how far we have lagged. 40 years of industrialisation and what we have is SMEs which contribute to 12% of the economy. We have no backbone industry to fall back on, not competitive in any industry, unlike in the past when we had rubber and tin for a century that enabled us to built the infrastructure and open up the country. Today we only have tourism.
Foreign labour has in the long run turned out to be a resource curse because it sustains uncompetitive industries. Therefore, our country is a sustained uneconomic economy.
+34 ...
written by Pegasus, December 15, 2010 11:30:23
Ameno style is why bother? The public always can foot the bill, while we (ameno) can continued to loot and spend like grandfather's money!
+26
Thanks Pak Yeh
ReplyDeleteTemenggong, well written comments. maybe if Mahathir let IMF take over in 1997, we probably will be in better shape than now.
the lack of capacity to repay the loan really worries me. If Malaysians still not aware of the implication, then they deserve whats coming...but for those 49% who vote with brains...they do not deserve to go this way
Yup, most malaysians are still sleeping on it.
ReplyDeleteLee.. let IMF take over? malaysia will be like indonesia then.. hahaha.. this is what happen when people did not really understand how the economy works.. malaysia are using deficit budget which is the expenditure is higher than revenue using the formula y = c + i + g.. where y is income n C is consumption and G is gov's expenditure.. when G increased.. Y will increased.. when Y increased.. C and I also will increase.. we use the same method in last recession for example: the building of KLCC,F1 circuit, Cyberjaya and many more which all been done during recession so that we could all go out from the slump.
ReplyDeletesaudara syed gaddafi, South Korea was a succes story post IMF take over..the intricate association between their big corporation and state disentangled and just look at the improvements Samsung and Hyundai since the 1997 crunch
ReplyDeleteagree, national income is measured either GDP method, consumption & expenditure (hope I remember my form 6 economic studies properly)
IMF bitter pill back then will finish the croninomics that has given a false impression and will bankrupt us
while revenue increase via G the debts also increase...together with exchange rate & foreign exchande rate risks....
when Malaysia withstood the onslaught on the Asian economies and exposed the IMF as an extended arm of Western policy. Whilst we do not agree with the way the Malaysian government has treated its domestic opposition without the necessary regard for their dignity and the required differentiation between subversive elements and genuine critics, he must be recommended for standing up to a formidable enemy.
ReplyDeleteDr. Mahathir's courageous actions conclusively prove that sovereign nations, however small, can and should always ignore the IMF, The World Bank, and anyone else who tries to impose such destructive monetary and economic restrictions on their countries, particularly when the medicine is rarely applied to the organisations making these harsh rules which claim that: there can be no gain without pain. An extract from an official report into the United Nations Monetary & Financial Conference at Bretton Woods is timeless. It was referred to in a speech to the House of Commons by Norman Smith, the member of parliament for Nottingham South, on Monday, the 20th of August, 1945, and accurately predicted that the IMF and the World Bank - which came out of Bretton Woods - "would POISON world harmony" which it undoubtedly has and yet they are still calling for more of the same.
1n 1997, Malaysia refused economic aid packages from the (IMF) and the World Bank, surprising many analysts. By refusing aid and thus the conditions attached ( basically IMF would control the country ) thereof from the IMF, Malaysia was not affected to the same degree in the Asian Financial Crisis as Indonesia, Thailand and the Philippines.
the truth is Malaysia was saved by petrolium and oil palm, not because of Mahathir standing up to IMF
ReplyDelete"By refusing aid and thus the conditions attached ( basically IMF would control the country ) thereof from the IMF, Malaysia was not affected to the same degree in the Asian Financial Crisis as Indonesia, Thailand and the Philippines"
- wrong, the FC hit Malaysia as a result of weak fundamentals and flow of hot money; not because of refusal to take up IMF package which came after the FC hit the various countries
- wrong, the FC hit Malaysia as a result of weak fundamentals and flow of hot money; not because of refusal to take up IMF package which came after the FC hit the various countries
ReplyDeleteplease elaborate more..
malaysia was not saved by petroleum and palm oil ONLY.. what malaysia did during the FC? we build towers.. we build KLIA.. we build Sepang.. why? so that the future generation ( which is now ) could benefit from it. indonesia, philipines and other SEA countries until now did not benefit much from their "wise" decision to accept the MIF offer dont they? our economy is slowly improved...This translates to an increase of GNI per capita income from RM20,770 (US$6,700) to at least RM46,500 (US$15,000), meeting the World Bank’s high-income benchmark. To help achieve this, the government aims to sustain 6% GNI growth between 2011 and 2020.
ReplyDeleteA total funding of over RM1.4 trillion is required for the duration of this economic push, with 92% of the funding expected to come from domestic investments and public funding expected to take up the remainder.
non government-linked companies (GLCs) are expected to fund 60% or RM824 billion with GLCs funding 32% or RM446 billion. Public spending is estimated to be around RM105 billion.
the targeted 60% private sector funding will be a significant increase from 37% in 2008, and is consistent with the 12.8% per annum private investment growth noted in the 10th Malaysia Plan.
it was noted that the total private investment from 2005 to 2010 was RM410 billion or an average of RM68 billion per annum.
Malaysia needs to increase this average annual private investment level in the next 10 years by about 60% more than historical average to around RM120 billion per annum for 2011-2020.
Private investment-led growth will cut government funding, which is constrained by the need to improve the nation’s fiscal position,
As such, government funding will be targeted at initiatives that will maximise GNI impact for every ringgit of public money spent, with heavier emphasis on development expenditure over operational expenditure.
as i've explain to u before.. using the deficit budget with the formula y=c+i+g.. malaysia will grow slowly.. the gov have to spend more in order to get MORE..
Malaysia has no time to lose. We need a complete, radical economic transformation. The days of depending on traditional growth engines are over. If we continue on the current model, we risk getting stuck in middle-income trap and lose out on talents necessary to support a high-income economy.
all these funding means more national debts, building KLIA and KLCC and Putrajaya is only taking petroleum money and income tax collected to benefit contractors to boost up the GNP numbers but in terms of distribution of national income to benefit on an equitable basis...this scores porly, very poorly....
ReplyDeletethere is no mentioning of developing soft skill, correct work attitide, ability to compete locally let alone internationally
we have a public service work force feed on by BTM indoctrination rather than striving for being number 1 service provider, we produce unemployable graduates who struggle with English and fare very poorly against graduates from non-M'sian universities whom i have pleasure to wrok with, we have insufficient internet services tat restain our competitiveness, the workforce in KL wasted time and energy commuting and incalcurable loss of man hours due to traffic jams and crime, we have insufficient health services in East Malaysia especially etc....I would trade solutions to all of the above with a few mega prooects that benefits a few contractors, consultants, hardware suppliers and foreign labourers
u need me to explain tat?
ReplyDeletesigh,IMF package came AFTER Malaysia SUFFERED the consequence of structureal weaknesses....not because after M'sia refuse to take IMF package then SUFFER the 1997 tsunami.