Malaysian Insider
By Clara Chooi
June 08, 2010
KUALA LUMPUR, June 8 — Prime Minister Datuk Seri Najib Razak today moved to quell fears raised by a minister that Malaysia would one day go the way of Greece and Iceland and become a bankrupt nation.
In a written response to a question by Lim Kit Siang (DAP-Ipoh Timor) in Parliament, the premier gave an assurance that the government was taking steps to ensure that Malaysia’s debts would be reduced and maintained at a manageable level.
“Malaysia will not face problems like what is happening at present in Greece and Iceland.
“The financial position of the federal government will continue to be monitored and controlled responsibly.
“Our deficit is expected to be reduced and our debt level will continue to be controlled in the medium, long and short terms.
“These efforts will help to ensure that the level of deficit and debt of the government will not rise to a point that it affects the ability of the country to repay them,” he said in his reply.
In his query, Lim had voiced concerns that Malaysia would go the way of Greece and Iceland and had asked the prime minister to explain the government’s efforts in ensuring that the country would not have to seek the aid from regional and international communities.
Najib explained that the country’s debt level had reduced in 2009 to RM233.92 billion from RM236.18 billion in 2008.
“The country’s debt ratio to GDP between 2004 and 2009 remained manageable with an average of 34.6 per cent.
“In 2009, the country’s debt level was reduced although the ratio rose a little. The reduction was caused by the full repayment of medium- and short-term loans by the federal government and the private sector, which better balanced out the net takings by non-financial public enterprises,” he said.
He added that the strengthening of the ringgit to the US dollar had also contributed to the reduction of the country’s foreign debt levels.
“The ratio of foreign debt as at Dec 31, 2009 was estimated at 7 per cent and this mirrors the strengthening of export revenue to repay our debt obligations.
“The ratio of international reserves to foreign short-term debts is more than enough to accommodate 4.2 times of our short-term debts,” he said.
Najib said the government would continue to be prudent and pragmatic in managing Malaysia’s foreign debts in order to facilitate the diversification of external borrowings by the public sector and to minimise risk in large external obligations and the capacity to service debts.
“For the private sector, external borrowings will only be done if it is needed to finance productive economic activities capable of generating foreign currency receivables to repay loans,” he said.
To reduce foreign debts, Najib said the government was embarking on several proactive measures including the prioritisation of domestic borrowings that do not contribute to inflation.
“Also, to encourage financial and monetary stability while at the same time preserve balance of payment positions, foreign debt management is supported by a comprehensive monitoring and debt surveillance system. This is to enable early detection of any risk and weaknesses that could be caused by national debt exposure,” he said.
Najib also said the government was currently studying the restructuring of fuel subsidies, which is in line with its objective of consolidating the country’s staggered fiscal position.
“The 2010 Budget will stress steps taken to increase effectiveness, income efficiencies and the government’s expenditures,” he said.
The government, added Najib, would also continue to intensify public-private partnership programmes for several high-impact projects including high-speed broadband, federal development corridors and public transportation infrastructure.
“To strengthen our stream of income, the government is also taking efforts to introduce the Goods and Services Tax. Through this, the government’s earnings base will be broadened and it will further shelter us from fluctuating oil prices,” he said.
#1 by rahmanwang on Tuesday, 8 June 2010 - 9:50 pm
O I like the last part.GST to be introduce to strenghten the income source for the government.
Put it simply “tax the people till they die”
#2 by limkamput on Tuesday, 8 June 2010 - 9:53 pm
The reduction was caused by the full repayment of medium- and short-term loans by the federal government and the private sector, which better balanced out the net takings by non-financial public enterprises,” he said.// i don’t think clara translated correctly from the BM’s version as stated by PM in the Dewan.
1. If there was full repayment of loan, there will no more debt.
2. Federal govt has no short term debt. The answer given by PM was net repayment of medium and long term debts.
3. We should ask how the federal govt had net repayment of foreign debt when the budget was in deficit. Where did the govt get the money to repay the loans? If you borrow domestically to repay foreign loans, then domestic debts would go up correspondingly.
#3 by sheriff singh on Tuesday, 8 June 2010 - 10:16 pm
What about the LOCAL debt?
If everyone is right, then Idris is wrong. He should then do the honourable thing. No one seems to be backing him. Not even Koh Tsu Koon.
Read the PM’s reply very, very carefully.
Its all mumbo jumbo.
#4 by sheriff singh on Tuesday, 8 June 2010 - 10:19 pm
Put the country’s financial position on stress tests and see the results.
#5 by -ec- on Tuesday, 8 June 2010 - 10:25 pm
debts should be analyzed by remaining term to maturity. bankruptcy will happen when no cash to pay upon debt maturity.
#6 by tak tahan on Tuesday, 8 June 2010 - 10:30 pm
Can someone help me with easier registration as voter like;thru net.I have few more friends who have few more friends also want to register.
#7 by yhsiew on Tuesday, 8 June 2010 - 10:31 pm
Why did Najib assign someone who is not familiar with the country’s finance and expenditure to do this kind of KPIs. I am sure there are more qualified people for the job. Such blatant mistakes make one think whether the new senators appointed by Najib would make a mess in the job assigned to them.
Selection of a particular person to fill a particular post should be based on that person’s knowledge and experience and not on political patronage or connection.
#8 by Jeffrey on Tuesday, 8 June 2010 - 10:43 pm
It was reported : “The Malaysian Insider understands that Idris has come under fire from Cabinet colleagues because his remarks (about bankruptcy) had undermined Najib’s government….”
Idris should respond either to admit he’s wrong about his remarks and retract them – or else he should stand by them, resign and follow Zaid Ibrahim’s path if he believes that politicians on his side aren’t interested in the truth.
Just like the other case. Bursa now denies absolving Vincent Tan of wrongdoing. TheMalaysiaInsider now reported: “Bursa Malaysia further clarifies that it did NOT say that ‘because of the conditions of the proposed acquisition, Berjaya Corporation did not deliberately mislead shareholders or Bursa Malaysia’….”Bursa Malaysia today refused comment over the status of tycoon Tan Sri Vincent Tan’s listed Berjaya Corporation’s claim…”
Ministry of Finance’s version is final OK?
#9 by waterfrontcoolie on Tuesday, 8 June 2010 - 11:07 pm
Bankruptcy will not hit the BolehLand, we will just print big notes like Zimbabwe; then we Malaysians have chance to spend mr$2 million on a loaf of bread. Wouldn’t that be nice, we are all trillionaires!!! Malaysia BOLEH!!!! with the latest discovery of the Black gold off Trengganu, more cash is available for the Umnoputra to spend , hence bankruptcy will be many years from now. Idris Jalal didn’t know that he was Johnny Come lately so they kept hom out of the oil discovery off Trengganu!
#10 by limkamput on Tuesday, 8 June 2010 - 11:09 pm
Aiyoo, of course lah MOF is king mah, you don’t know meh? Which Westminster model of government has PM double up as Finance Minister. All these nonsense start with mamak lah. What check and balance? Within the Executive Branch is already like a runaway train lah.
Even if VT is right, so what. When MOF says he is wrong, Bursa will say he is wrong, simple logic lah, no need to think one.
#11 by Justitia on Tuesday, 8 June 2010 - 11:10 pm
I think one important point that people tend to forget and our bozo PM forget as well is that financial markets sometimes take on a life of it’s own. Greece was cruising along happily until one day someone decided that the risk for bankruptcy was great. Then the herd instinct takes over and the rest is history.
Now the rest of the Euro zone are going through austerity plans to contain the Greek crisis. There is wide unrest in Spain and the German cabinet just propose plans to bring the budget deficit down to under 3%. We have the anchor of the Euro zone concern about budgetary matters. I would submit that Germany has a stronger and more diversified economy compared to M’sia. And if Germany is concerned, shouldn’t we be also.
Once the spotlight is turned on M’sia, how is Najib going to cope? Bankruptcy? Belt tightening (politically unpalatable with extremely high risks of social unrest)? Print more money? Ringgit devaluation? Higher taxes? Commit Harakiri?
#12 by sheriff singh on Tuesday, 8 June 2010 - 11:41 pm
The PM dispels Idria Jala claims. His Cabinet colleagues are against him. BN MPs and backbenchers have spoken out against him. The treasury dispute his figures and methodology. Dr M disagree with him. Why, even Ibrahim Ali and Perkasar has spoken out against him. Everyone is distancing away from him.
This man Idris Jala stands alone. Are his laboratories correct or are they badly flawed?
But what if he is right?
#13 by Godfather on Tuesday, 8 June 2010 - 11:42 pm
Europe is going to drag the world into a double-dip recession soon. Asset prices will be marked down 30 – 40 pct. Banks will go bankrupt. Interest rates will be near zero. Prices of commodities will fall drastically. Factories will shut down. All over the world people will be thrown out of work.
Here in Bolehland, we are trying to convert to a high cost economy without understanding how. We are still in deficit spending mode. Latest scam is the RM 50 billion rail projects to be given to UMNO and royalty cronies.
Najib is only as good as Alfred Neuman in MAD magazine. “Who?” “What?” “Me?”
#14 by good coolie on Tuesday, 8 June 2010 - 11:59 pm
Oil revenue may save us. Mine mother earth (she won’t mind). Don’t give UMNO any of the money, though!
#15 by BoycottLocalPapers on Wednesday, 9 June 2010 - 12:00 am
To prevent our country from becoming like Greece, we should stop donating money to Palestine.
It is better to use the money wisely by educating our children and fellow citizens as we are not sure whether the money given would be used to help the poor or to commit suicide bombing.
If you need to donate, donate to the Red Cross because Red Cross can do better charitable job than those idiots on floatilla.
#16 by House Victim on Wednesday, 9 June 2010 - 1:28 am
1. If taking the exchange rate fluctuation of 2008 & 2009, should a debt of RM233.92 billion in 2009 in compare with RM236.18 billion in 2008 mean an Increase in external Debt?
2. According to IMD (the one putting Malaysia as the 10th most competitive countries) http://www.imd.ch/research/publications/wcy/upload/PressRelease.pdf
The Debt % in reference to GDP is already 53,73% in 2009, and NJ is saying an average of 34.6%. So, obviously he is playing with figures and surely 53.7% is not a good figure!!
3. Shouldn’t there be a precise figure for foreign debt % instead of estimated 7% s at Dec 31 2009? The repaying power is only related to a positive Balance of Trade and not on export revenue. Is there a Positive Balance.
4. According to the BNM (Bank Negara) Statement of Assets & Liabilities http://www.bnm.gov.my/index.php?ch=12&pg=142&sdate=2010-05-31
a) Total international Reserve is 93 billions, should they be also for Trading?
b) If the whole is to meet 4.4times short-term external debt, meaning short-time ext debt is only about 21billions. But, what do it means by short-terms? Where are those Foreign Debt being listed in the Statement
4. How much external loan are for Finance productive economic activies and what are they?
5.How much is the domestic loan? If 238billions means 7%, the domestic loan is at 3400billions. if with 5% interest, annual cost is already 170billion!! So, who are these interest receivers?
Does it include Malaysia’s US$1.25 Billion Global Sukuk issued by 1Malaysia Sukuk Global Bhd (1Malaysia),
Or, do these kind of Trust certificate being under Government Guarantee and accounted in BNM’s statement.
6. What are Budgeted for 2010 by items?
7. For Petrol, what is the production cost so as to qualify the word “subsidize”?
8. Introduction of GST will make cost higher for production and living so less for profit tax income. And, it also cost a lot when this has to be imposed.
#17 by johnnypok on Wednesday, 9 June 2010 - 3:33 am
1. Abolish AP with immediate effect
2. Reduce the price of petrol for Sabah and Sarawak only
#18 by House Victim on Wednesday, 9 June 2010 - 7:24 am
Repost again as had mistaken 233.92billion being the Foreign debt instead of Total Debt
—————————————
http://www.bnm.gov.my/index.php?ch=12&pg=142&sdate=2010-05-31
As at May 31, 2010 BNM Statement of Assets & Liabilities
Assets RM
[1]Gold and Foreign Exchange and Other Reserves including SDR 312,209,079,195 *
[2]Malaysian Government Papers 2,658,635,494
[3]Deposits with Financial Institutions 12,715,815,000
[4]Loans and Advances 12,549,436,786
Other Assets 6,723,329,314
[5] 346,856,295,789
Liabilities RM
Paid-Up Capital 100,000,000
General Reserve Fund 13,478,068,329
Other Reserves 14,700,289,635
Currency in Circulation 53,209,995,798
Deposits by:
[6]Financial Institutions 158,016,490,148
[7]Federal Government 8,116,623,892
Others 1,398,764,249
[8]Bank Negara Papers 72,162,267,878
[9]Allocation of Special Drawing Rights 6,656,367,049
Other Liabilities 19,017,428,811
346,856,295,789
Effective from 1999, all foreign assets and liabilities are revalued at the end of each quarter.
The US Dollar equivalent of International Reserves was USD 95,470.6 million as at 31 May 2010.
KUALA LUMPUR 7 June 2010 DR. ZETI AKHTAR AZIZ GOVERNOR
International Reserves (with Main Components)
31 May 2010 USD billion
[10]Total Gross International Reserves 95.5
Foreign Currency Reserves 85.7
IMF Reserve Position 0.4
SDRs 2.1
Gold 1.3
Other Reserve Assets 6.0
=====================================
[1] what is SDR?
a) Deducting from [9] & [10],including IMF SDR, the balance SDR will be 101.2billions!!
b) It could not be IMF’s SDR as IMF is mentioned separately under [10]. IMF SDR for the world upto Sept 2009 is SDR 204 billion. http://en.wikipedia.org/wiki/Special_Drawing_Rights
c) It could be for the back-up of the 72billion of BN paper under [8] with 2.7 billions of Government Guarantee at [2]. d) The key point is What is SDR in this case?
[3] 12.7billion deposited with Financial Institutes (FI) but [6] 158billions are from FI. So BNM owes FI 145.3 billions. Does that includes Provident Fund?
[8] Deducting [2], Can we take the Federal Government has only 5.7billions as cash to run.
What is the budgeted deficit for 2010?
[9] Special Drawing Rights – who are they issued to and for what?
[10] For 95.5 billions of International Reserve, how much is to be for Debt repay, trade payment?etc..?
[11} What are those other liabilities.
a) Do those Reserve include the one for PKFZ and others, or, the 1.2 billion USD Global Sukuk accounted.
b) What are the repayment schedules of all the loans by the Government or under its guaranteed both domestic and international.
c) How many foregin loan via those Corporations under the Ministry of Finance had not be accounted?
d) How many “Guarantee” via Minister and not Financial Minstry, such as the PKFZ not been included.
e) Where are those Provident Fund and Pensions?
f) What is the total annual financial cost?
f) from http://www.statistics.gov.my/portal/index.php?option=com_content&view=article&id=447:gross-domestic-product-gross-national-income-updated-13052010&catid=35:key-statistics&Itemid=53&lang=en
GDP in 2009 is 679,687 millions rounding up to 680 billions.
The Debt of 233.92 billion does not seemed to has been accounted in the BNM Statement.
———————————————-
1) If NOT, is it proper? And, WHERE should they be accounted?
2) With [8] above, some 5-8billion cash, which cannot even stand one month operating Expenditure!! (ref. 5) below)
Can the Government stand without Bankruptcy? Unless they has substantial other Fixed Asset. And, can they talk about New Project or Continued with Old ones?
3) How many fixed Asset does the Government has? And, what are they?
4) With a GDP of 680 billions and 233.92 billions in debt, can Malaysia talk about an annual Budget of 470 billions?
With cut of Subsidies, Imposed of GST….
http://finance.klmanagement.com.my/malaysia-budget-2010/
5) The Budget for 2009 is at 207.9 billion with 154.2 as operating expenditure and 53.7billion for Development Expenditure.
http://www.scsglobal.com.my/article/Budget%202009%20Summary.pdf
#19 by HJ Angus on Wednesday, 9 June 2010 - 7:32 am
The “Bankrupsi Negara” government hides behind too much hidden information and the voters should be informed with more details.
Some time ago, they proclaimed they would make toll agreements public and some 2 years have passed.
Also publish the sweetheart deals for the IPPs.
Even the most simple task to start to get rid of the subsidy mentality cannot be done – so how to implement even more stringent budget constraint?
I am referring to the 7% to 15% discount that Bumiputra property buyers enjoy – from single-storey terrace houses to million ringgit bungalows.
How about publishing some stats on how many homes the rich and famous have bought at prices subsidised by the poor?
NAZA late boss can even afford a string of properties abroad on the generous APs dished out.
A fair policy on housing for Bumis would be:
Each Bumi is granted the concession of buying ONE discounted property in his/her lifetime for a property that costs less than RM300k.
#20 by Bigjoe on Wednesday, 9 June 2010 - 7:55 am
Oh Well, since he says so, it must be true!!
You have your guy do the numbers and says its so, then you say its not true. Remember Idris Jala is a senator, his guy. If he can turn his back like that on his own fellow, what he won’t do to the rest of Malaysian regardless of race, religion. What won’t his wife do?
The man cheats on his family, his employers, his underlings and you can bet he will cheat on us all..
#21 by House Victim on Wednesday, 9 June 2010 - 7:57 am
http://www.scsglobal.com.my/article/Budget%202009%20Summary.pdf
1. “This budget allocates RM17 billion for fuel subsidise and RM3.1 billion for food subsidise…”
The annual budget is 207.9 billion can afford subsidies in 2009 and not a budget with 470 billion in 2010??????
2. “Malaysia’s International reserves remianed strong at RM403.9 billion (USD123.7 billion) as at 15 August 2008 (end December 2007: RM335.7 billion/USD100.7 billion)….” International reserves were adequate to finance 9.7 months of retained imports, and five times short-term external debt.”
meaning
a) Finance of retained import is around 41.64billion/months
b) Short term external debt is around 80.78billion
2. With the International reserve at 95.47billion on May 31, 2010,
a) it could only be good for about 2months retained import!!
b) does it mean around 60billion of foreign short-term debt been paid in one year?
3. When operating expenditure is budgeted at 154.2 billion, monthly expenditure is estimated at 12,85billion. But the Federal Government is only having some 8.12billion of cash in BNM on May 31, 2010!!
#22 by Thor on Wednesday, 9 June 2010 - 8:09 am
This pink lipped guy is talking with lots of shi..t in his mouth!
With lots of big spending and buying, what does he knows?
As long as he is loaded, he need not fear of anything.
To him and to his cronies, this country is a “gold mine”, and once it’s empty, they’ll move in to another country where they finally call it home.
Though they looked old, all these scums are still thinking with kid’s mind.
They’re totally a spoilt brat and if you have any of these people in your family, you’re gonna be bankrupt one day.
Bankrupt???
In their dictionary, there’s no such word!!!
#23 by House Victim on Wednesday, 9 June 2010 - 8:12 am
Basically, how can a Budget be made for 470 billion when the GDP is only 680billion per annual and 233.92billion in debt with deficit budgeting a number of previous years. And, with very little cash and Asset in BNM???
#24 by waterfrontcoolie on Wednesday, 9 June 2010 - 9:24 am
YB, it looks like the press release by the Ronnie Lui pertaining to the withdrawal of the need to fill up the house assessment forms is no avail while the public is still being told by Municipal office, they have to fill up or face action. it is a reminiscent of poor administration. This is some small issue that can cause you the votes of the fence sitters. Either way, come out with a clear directive. The average Malaysians have to earn their daily bread ; they should not be burdened with vague directive!
#25 by TheWrathOfGrapes on Wednesday, 9 June 2010 - 9:42 am
/// “Malaysia will not face problems like what is happening at present in Greece and Iceland. ///
But is will face problems like Ireland and Hungary.
#26 by TheWrathOfGrapes on Wednesday, 9 June 2010 - 9:43 am
/// Najib explained that the country’s debt level had reduced in 2009 to RM233.92 billion from RM236.18 billion in 2008. ///
Wow, this calls for celebration and fireworks!!! A reduction of 0.97% – what an astounding achievement.
#27 by ekompute on Wednesday, 9 June 2010 - 10:01 am
QUOTE: “To strengthen our stream of income, the government is also taking efforts to introduce the Goods and Services Tax. Through this, the government’s earnings base will be broadened and it will further shelter us from fluctuating oil prices,” he said.
We have been assured that GST won’t affect the people. So where does the GST earnings come from, if not from the people? Looks like our ministers are talking cock again.
#28 by ekompute on Wednesday, 9 June 2010 - 10:02 am
With petrol money, still cannot manage the economy. Wait until the petrol runs out and we will see how they manage.
#29 by HJ Angus on Wednesday, 9 June 2010 - 10:18 am
Whichever government takes over in the next GE will need to cut operating expenditure or raise taxes/remove subsidies:
We cannot be forever having stimulus budgets that keep increasing the national debt.
Now if you consider that we bought billion ringgit worth of submerging tin-cans with no budget for maintenance, you will realise that this government is going to Bankrupsi Negara.
Anyone who has worked in the private sector will know that any project proposal must include operating cost plus maintenance spares for one or two years.
So I will not rule out GST as it is a consumption tax and those who use more pay more tax – maybe start at 4% and have cash hand-outs to the really poor.
I daresay there are some well-off traders who pay no tax and enjoy the subsidies.
As in Spain, you can see how difficult it is for a government to cut salaries of civil servants – so we need to take steps now to freeze wages and other benefits. Transfer staff from the surplus departments to those that are lacking. Freeze intake of new employees and when recruitment starts again, eliminate the pension for NEW staff and get them into EPF.
#30 by Godfather on Wednesday, 9 June 2010 - 10:30 am
HJ Angus:
Cutting expenditure ? Eliminate subsidies ? Freeze hiring ? Eliminate pensions ? Where are the votes coming from if all these were to be implemented ?
The government is about to approve RM50 billion of rail deals, and another RM 8 billion of new coal power plants. Already the talk is that UMNO cronies have been lined up to undertake these contracts. Nah, no contracts equals no money for BN. They would rather that the country goes bankrupt in 2019 than go on an austerity drive between now and then.
#31 by k1980 on Wednesday, 9 June 2010 - 10:36 am
//cash hand-outs to the really poor//
How do you classify the really poor? The rural poor at least possess a bit of land on which to build their shanties and grow some food. On the contrary, the urban poor rely on rented rooms and odd jobs. Both of these poor are not paying income taxes at the moment, but all hell is going to break loose with the imposition of GST
#32 by k1980 on Wednesday, 9 June 2010 - 10:54 am
Words of wisdom for Jib and Rosemary—
* For attractive lips, speak words of kindness.
* For lovely eyes, seek out the good in people.
* For a slim figure, share your food with the hungry.
* For beautiful hair, let a child run his or her fingers through it once a day.
* For poise, walk with the knowledge you’ll never walk alone.
* People, even more than things, have to be restored, renewed, revived, reclaimed, and redeemed; never throw out anybody.
* Remember, If you ever need a helping hand, you’ll find one at the end of your arm.
* As you grow older, you will discover that you have two hands, one for helping yourself, the other for helping others.
* The beauty of a woman is not in the clothes she wears, the figure that she carries, or the way she combs her hair. The beauty of a woman must be seen from in her eyes, because that is the doorway to her heart, the place where love resides.
* The beauty of a woman is not in her wig, but true beauty in a woman is reflected in her soul.
and most important of all,
Those who live by the sword get shot by those who don’t.
#33 by ekompute on Wednesday, 9 June 2010 - 11:03 am
Yes, cut everything but leave corruption alone… don’t cut that!
#34 by johnnypok on Wednesday, 9 June 2010 - 11:13 am
We can’t afford to celebrate high world oil price, because we have pre-sold to Japan at $20 per barrel to off-set the massive loan that was taken to build the stupid twin towers.
#35 by HJ Angus on Wednesday, 9 June 2010 - 11:37 am
Of course eliminating corruption must be the cornerstone of any responsible government.
Maybe not eliminate but reduce significantly or there will be a collapse of the system.
We, rather the nation, have been living for too long beyond our means and with significantly lower FDIs we are losing the capacity to sustain the level of consumption.
The government has not been able to work well with public servants but instead just keeps on giving more to keep them happy(to get voted). Another fixed deposit that needs to be fixed.
#36 by Brats195 on Wednesday, 9 June 2010 - 12:21 pm
Check and Balance is lacking. How can a government servant, in this case PM, give away tax payers’ money during by-election? I believe the money is put to good use, but the lack of check and balance is SCARRRRRRRRY….
How can a government servant, in this case PM, give away my money (I’m a tax payer) by a mere spoken words during the by-election campaign????
This is happening right before my eye, I could not believe it! Where is accountability.
I wonder how much more are given away JUST LIKE THAT either at a stroke of a pen or uttering of spoken words!!! This is not what a government servant should behave…
Every cents spent should be justified and going through at least 3 levels of approval and vetting;
Every cents from the Tax Payers money should be grouped by states seat and parlimentary seats.
Level #1 – Tax payers (I recommend 3) together with the State & Parlimentary elected representative should be consulted before spending a single cents from that constituency. Tax payers are pay masters and should be consulted. In this case, there is adequate check and balance. For example, I would not approve if my money and my fellow tax payers’s money were not put to good use. I will spend hundreds of hours to scrutinize proposal before parting with my money. This is accountability! This is check & Balance. This will prevent irresponsible government servant from giving away our money for his or her own agenda.
Level#2 – State Government should be involved to make sure money taken from the states’s tax payers’ money is used to benefit the states. This is another check and balance to make sure my money is not given away for different agenda.
Level#3 – Federal givernment should be involved to ensure the project has long term impact. This is another check and balance.
I don’t think it is that easy for an irresponsible givernment servant to waste Tax Payers’ money given the above approval process.
Time is an essense to investigate and evaluate justification for spending money.
The key to check and balance is to get approval from pay master. In this case, tax payers.
If any government servant were to spend his or her own money, I do not think he or she will part with his/her money that easily!!!
Today, the government servant is spending Tax Payers’ money with ZERO check and balance. WHAT DO YOU EXPECT? HOW CAN YOU STOP ABUSES?
God bless all the tax payers…..
#37 by Voter get Voters campaign for PR on Wednesday, 9 June 2010 - 1:06 pm
To ALL readers & commentators : Complained and whinned ALL you want,there is NOTHING,absolutely NOTHING you ALL can do. However there is one and ONLY one thing which we ALL can and SHOULD do viz is start your own “VOTER-get-VOTERS” campaign for PR. Do it not tommorrow but NOW cos GE13 is just around the corner..closer than you think. Start this ” VOTER-get-VOTERS 4 PR” campaign NOW by chain emails,sms,words of mouth to everyone….for a BETTER Malaysia..Join us at “VOTER-get-VOTERS for a Better Malaysia ” in facebook
#38 by Onlooker Politics on Wednesday, 9 June 2010 - 2:31 pm
A teacher of a national school who is about to retire told me that the Federal Government decided to revise the pensioner remuneration scheme and would adopt a scheme of several years’ delay in paying a sum of emolument to the retired teacher. This is an bad sign showing that Federal Government is running into the cashflow problem already! That is high possibility that Idris Jala’s forecast will fall true!
#39 by newchief on Wednesday, 9 June 2010 - 2:57 pm
dtk lim….pls raise this point by the moron koh su khoon …. HE DISPUTE & DISAGREE with MOF but cited his man ( idris ) as correct in the figures .
pls raise this point that the whole of MOF should resign immediately from their post if no action is taken against koh and idris !!!
both parties is making conflicting confusing statements to the rakyat !!!!
#40 by Brats195 on Wednesday, 9 June 2010 - 3:20 pm
Absolutely agree with “VOTERS GET VOTERS”. Vote BN out……but whom should we vote in to replace BN?
Pakatan Rakyat is equally hopeless! Pakatan Rakyat is ill prepared to manage success. You know the failures as much as I do.
The choice of candidates is anything but quality…..
Lim Guan Eng is capable but he is singing solo in Penang to the tune of CAT. Trust me, his staff is less than competent to even work for private company, let alone holding public offices. I have names and evidence if you want to know more. His MPPP president is one example, I have tons of email and phone converation to show how sloppy she is!
PKR can not even hold it’s own party together, let alone manage the federal government. I see chaos and havoc instead of the ideals that ANWAR has been preaching.
All candidates selected to run for office must be knowledgeable in his/her chosen field, uphold integrity and honesty. The value he or she uphold must be demonstrated instead of “hoping for” or “has potential”.
He or she should be chosen by party members instead of party leaders. His or her credential should be circulated for close scrutiny to be qualified as a contender for public offices.
Lim Guan Eng’s MPPP president is one dubious example of careful selection of candidate to hold public office.
I welcome more discusssion and example to bring home the point the Pakatan Rakyat is ill prepared!!! PR needs more input from all of us Net-Citizens to wake them up
VOTERS GET VOTERS is a good idea, I still wonder who to vote ??????????
God bless the voters……
#41 by victimofcorruption on Wednesday, 9 June 2010 - 3:36 pm
Give change a chance (although highly unlikely it will happen). If change does takes place, but not for the better, then change again.
In the mean time, you must start to save money from now so that you can migrate to more livable country when 2019 looms (if both sides failed to perform).
#42 by victimofcorruption on Wednesday, 9 June 2010 - 3:39 pm
yeap. What an eyesore. Add KL Tower to the list too.
#43 by victimofcorruption on Wednesday, 9 June 2010 - 3:41 pm
We can only anticipate more robberies till then.
#44 by victimofcorruption on Wednesday, 9 June 2010 - 3:45 pm
Come GE13, our deficit will jump a big jump.
#45 by Jamal Malik on Wednesday, 9 June 2010 - 4:00 pm
In Australia, before the government introduced GST, there was the 20% tax fpr all.
When the 10% GST was introduced, the 20% tax was eliminated altogether. It makes sense. By abolishing a higher tax to replace with a 10% consumption tax.
In the case of Malaysia, if you were to remove subsidies, that would increase household expenditures. Impose GST on top ? – that would be a double whammy for all.
It would be interesting to see what the outcome would be. Obviously these goons passage through university has been assisted somehow.
Elementary UMNO ! Elementary !
#46 by waterfrontcoolie on Wednesday, 9 June 2010 - 4:38 pm
Someone sent me a video regarding the financial problems of Greece. It ws deemed that the explanation was quite simple: Greece and Portugal or Ireland took loans from Germany, France, Italy Britain to finance their hutang. These countries in turn took loans from USA who kept printing green backs as they keeping selling thier asset to China, Japan, Russia, Singapore, Hong Kong and Taiwan. Problem ssolved!
#47 by johnnypok on Wednesday, 9 June 2010 - 4:43 pm
The lazy / unproductive majorities must start to work hard, and all the rent-seekers should be sent to Indonesia to work as laborers / domestic servants, and bring the money home.
All the corrupt to be resttled in detention camp and made to do hard work.
#48 by Brats195 on Wednesday, 9 June 2010 - 6:04 pm
I have no idea what our PR MP’a is doing in parliament?
Lim KS keeps writing, writing and more writing……for what?
Lim KS keeps very busy sending twitters…I wonder what the use is.
Lim KS is empowered in Parliament, do something! Blog sphere is for helpless people like us to voice out when I can’t do a damn thing.
I wonder what the use of our MP’s is if they can not do a thing in parliament.
We better off remove all of the PR MP’s, save the salary and perks, Save the environment (excessive use of internet, phone, twitter and papers). The outcome is still the same…..So why do we need any PR MP’s in Parliament??????????????????????????????
I wonder.
God bless the MP’s…………….
#49 by raven77 on Wednesday, 9 June 2010 - 10:01 pm
Winning elections is one thing….but governing and that too governing successfully is whole different ball game….can PR do a Singapore in 5 years…I dont think so. They will say things like dont expect to right the wrongs of 52 years in 5 years. But that exactly is the problem. People are at the end of their tether. And if they dont perform within 5 years, the BN juggernaut will come knocking them out double quick. And how do you perform in 5 years!!!!! The answer is ….you need to collect the brains and get them ready now to do the job. I dont see the Pakatan getting ready to do this at all!
Just look at Selangor. Khalid and co are still keeping moronic council officers who send out idiotic 40 year old letters for home assessment despite the PR being in power for two year. It will soon be 5 years. And people at the end of their tether may just throw up their hands in the air and go back to the devil they know. PR fellas have to go head hunting and get their 4 states to start delivering miracles. Otherwise, it’s bye bye at GE13.
#50 by writecom on Thursday, 10 June 2010 - 1:03 am
The PM’s statement contradicts with his ministers in the PM’s Office so what’s real and what’s false. One things for sure is that the Malays will suffer badly when the UMNO cronies empty the government’s coffers. The other communities won’t suffer so much as we are not dependable on the handouts or special privileges. Only the smart Malays will join the corporate bandwagon together with the other communities as Malaysians. All Malaysian irrespective of race & religion should make their stands in the next GE and deny BN before we are turn insolvent. BN has complain that the United Nations are undemocratic in handling the Israel affairs. Why can’t they say that they are also undemocratic in the elections and ruling the country. UMNO are like the Israels who dominate & deprived the other communities like Palestine of their rights & freedom. UMNO/BN & TDM claims that UN are undemocratic, so what rights does UMNO/BN & TDM has to fight against Israel when they also treat the other communities in Malaysia as Palestine. We should refer Israel to the International Court including UMNO/BN.
#51 by House Victim on Thursday, 10 June 2010 - 7:35 am
The Debt figures given by NJ are contradicting to his presentation as well as those figures present in the 2008/9 or 2010 budgets speech as in Post #16 & 18.
1. From IMD, the renowned Swiss Survey Report putting Malaysia as the 10th Most Competitive Country indicated Debt GDP % at 2009 being 53.73%.
whereas GDP from the Statistic Department is 680billion. Therefore, the total debt should be around 365billion.
where as NJ only indicated RM233.92 billion.
2. Foreign Debt
a) NJ mentioned it to be 7% of the total debt
7% x 233.92 billion = 16.31billion
b) NJ indicated the International Reserve (IR) is good for 4.2x Short-term Foreign Debt.
From Bank Negara Statement, (BNM), IR at May 31, 2010 is 95billion. So, even only for short-term Foreign Debt it is 22.68billion.
c) BDW for his 2009 budget mentioned that the IR on August 2008 is good enough for 5time Short-term Foreign Debt. And, the IR at that time is 403.9billion. This indicated the short-term Foreign Debt during that time is already around 80billion.
d) However, NJ ‘s indicated there are very little change in the Debt position from 2009 to now!!
3. From BNM Statement
It does not seem to reflect the debt position of the country!! Nor, any Fixed asset of the Government.
3. Cash flow is very low at max some 8billion in BNM, when Operating Expenditure budgeted in 2009 is 154.2 as operating expenditure and 53.7billion for Development Expenditure. Meaning it cannot even sustain ONE month expenditure for an annual budget of 207billion for 2009.
And, NJ wants a budget of 470 billion!!And,the GDP at 2009 is only 608billion and Total Debt at 234-365billion!!
NOTHING SHOULD PROCESS TO ANY BUDGET DEBATE WHEN THE ACCOUNT OF THE GOVERNMENT IS NOT CLEAR AND COMPLETE!!
#52 by victimofcorruption on Thursday, 10 June 2010 - 9:46 am
That is exactly what I am worried about. So does this means that Malaysia is a gone case now? PR may have made a lot of “useful noises” recently but have they thought about what needs to be done if by a miracle they have managed to topple BN?
#53 by johnnypok on Thursday, 10 June 2010 - 3:42 pm
Majority are handicapped, lazy and unproductive, with increasing number of unemployable graduates, and many big government-owned companies begging for money to bail out, while corruption has gone out of hand, and instead of looking after our own people, they are giving free food to other countries, spending millions on cheap advertisement in the US to promote the fat lady, like this surely will go bankrupt even before 2019.
#54 by HJ Angus on Friday, 11 June 2010 - 10:05 am
I don’t expect any new government to be able to undo all the wrongs within the first 5 years but definitive steps must be taken to take criminal action against a few big sharks so that others will start to cooperate with any government to mitigate actions that can be taken against them.
Maybe a system of plea bargain in return for a reduced charge that does not cause them to become out of job etc.
Remember what happened in Iraq when the old Iranian Guards were simply sacked? Chaos!
Of course all ill-gotten gains by civil servants will be surrendered to the state.
Minor civil servants “the ikan bilis” will be given amnesty if they simply coperate with any new government.