UMNO and MCA leaders should be explaining why Malaysia topped the world in per capita illicit capital outflows, losing RM888 billion in nine years from 2000 – 2008 as a result of corruption and misgovernance, instead of disseminating lies and falsehoods in the Tenang by-election in Johore.
It is five days since the Washington-based financial watchdog, Global Financial Integrity (GFI), reported that Malaysia is among the countries which registered the highest illicit financial outflows over a period of nine years in the last decade.
The five countries with the highest illicit financial outlays between 2000 and 2008 were:
1. China $2.18 trillion 2. Russia $427 billion 3. Mexico $416 billion 4. Saudi Arabia $302 billion 5. Malaysia $291 billion.
Capital outflows from Malaysia more than tripled from US$22.2 billion in 2000 to US$68.2 billion in 2008, totaling US$291 billion (or RM888 billion) in nine years between 2000 and 2008.
GFI warned that the massive and sharp increase of capital flight in Malaysia is “at a scale seen in few Asian countries”.
In per capita illicit outflows, Malaysia has the dubious distinction of topping the world – as seen from the following table (population figures for the other four countries based on CIA World Factbook 2010):
China (pop 1.3b) — US$1,677 Russia (pop 140m) — US$3,007 Mexico (pop 111m) — US$3,749 Saudi Arabia (pop 28.6 m) — US$10,559 Malaysia (pop 27m) — US$10,780 (RM33,000 approx)
It is more than five days since the publication of the GFI report but there has been conspicuous silence from the government, apart from the lame excuse by the Prime Minister, Datuk Seri Najib Razak, who is also Finance Minister, passing the buck to the Bank Negara on Friday when he said that Bank Negara would provide “specific comments” on the GFI report on the RM888 billion illicit capital outflows in nine years from 2000 to 2008 because of corruption and misgovernance.
Instead of resorting to irresponsible politicking and “scare-and-fear” campaign in the Tenang by-election, Umno and MCA leaders should explain the loss of such astronomical sums which cripple national development by depriving the public coffer of tax revenues crucial for providing public goods like public security and high educational standards and drain capital needed for various investment projects, poverty alleviation and economic growth.