Malaysiakini
Mar 10, 11
Malaysia recorded RM135.3 billion in errors and omissions (E&O) in its outflow funds for the period 2000 to 2009.
Prime Minister Najib Abdul Razak said considering the huge amount of trade transactions with the rest of the world as well as the lack of data for specific goods due to statistical errors or unrecorded transfer of funds, there was bound to be E&O in the balance of payments.
“Malaysia’s financial and economic trading with the world outside is seen in the balance of payments statistics, which is prepared according to a methodology set by the International Monetary Fund (IMF),” he said in his written reply to a question from Lim Kit Siang (DAP-Ipoh Timur) at the Dewan Rakyat sitting today.
Lim wanted to know the measures taken by the government in the light of a report by Global Financial Integrity (GFI) which stated that Malaysia saw illicit money outflows amounting to RM889 billion from 2000 to 2008 due to corruption and mismanagement.
Najib, who is also the minister of finance said the RM135 billion E&O was less than two per cent of Malaysia’s total trade and about five per cent from total trade if measured by the accepted standard.
“Besides the statistical errors that actually occured, the E&O probably also reflect the unrecorded financial flows carried out through informal channels, which probably include funds arising from illegal activities,” he said.
Bank Negara Malaysia, aware of the increase in the number of unrecorded outflow of funds, has carried out investigations on illegal transfer of funds made by money changers, he said.
To date, the licenses of 50 money changers have been cancelled and eight money changers and their directors have been charged and found guilty in the courts, he said.
“An action plan and new framework of laws for the money changing and remittances industry will be implemented this year to bring about solid growth and development for the industry with good administrative standard and professionalism that will protect the integrity of the industry,” he said.
He said international cooperation and the sharing of information with foreign enforcement agencies including the sharing of investigation details and proof for cross border transactions have been also increased.
– Bernama
#1 by HJ Angus on Thursday, 10 March 2011 - 7:58 pm
This is what happens when the PM does not appoint a competent Finance Minister but does the job himself!
Instead of managing national finances, the FM’s duties seem to be more of allocating crony mega-projects.
And even those have poor results for taxpayers.
http://malaysiawatch4.blogspot.com/2011/03/jbs-rm2bil-ciq-good-example-of-lousy.html
#2 by yhsiew on Thursday, 10 March 2011 - 8:22 pm
///Prime Minister Najib Abdul Razak said considering the huge amount of trade transactions with the rest of the world as well as the lack of data for specific goods due to statistical errors or unrecorded transfer of funds, there was bound to be E&O in the balance of payments.///
Najib is not a good auditor. He should pass the job to a more competent person.
#3 by Loh on Thursday, 10 March 2011 - 8:27 pm
///Najib, who is also the minister of finance said the RM135 billion E&O was less than two per cent of Malaysia’s total trade and about five per cent from total trade if measured by the accepted standard.///–
It does not matter whether it was 2% or 0.2 % of whatever trade figure Najib wants to portray, the absolute figure of RM 135 billion is the issue. Najib cannot deny that the government tries very hard to attract FDI, and what comes in is less than what goes out. This means that owners of the money have no confidence in the country and that is why they moved their funds overseas, illegally. That statistics, the absolute outflow, not the percentage of whatever domain, tells foreigners that Malaysia is a risky destination.
Oil money from the Middle East found it convenient to park here by the few families whom perhaps Rosmah could help to convince. With the change in political environment in the Middle East, and democracy removing despots,oil money are no longer petty cash for despots who are not around to play with it. Then there will be net outflow of FDI. Yes, there was new found oil in Sarawak to delay net import of oil, if they are to be pumped up within the next few years. How long can oil remain fixed deposit?
#4 by Loh on Thursday, 10 March 2011 - 8:33 pm
The present Sultan of Johor while Raja Muda had shares in the company which was to undertake construction of the bridge to replace the causeway. Since ascending the Johor throne he urged the government to build the crooked bridge for the interest of Johor people. He is consistent.
#5 by joehancl on Thursday, 10 March 2011 - 8:59 pm
Malaysia where are we going? A govt. that does not know how to govern. Leakages everywhere. A PM whose directives are not carried out here: from malaysiakini…Group: PM gave consent for Bibles in BM
Mar 10, 11 4:04PM
Christian Federation of Malaysia claims that an order by Najib to allow the import of the Bible in BM had been ignored http://www.malaysiakini.com
#6 by HOHOHO on Thursday, 10 March 2011 - 9:24 pm
Ho Ho Ho
Like this M’sia sure will BANKRUPT la under this incompetence najis & their PIRATES goons………..check their SWISS account la n that ‘pek mo’ over the SEAS PROPERTY!!!!! ai yo yoyoyo shit lo ini macam punya LEADERS ………
#7 by HOHOHO on Thursday, 10 March 2011 - 9:26 pm
Ho Ho Ho
Malaysia will go BANKRUPT under this najis n the gangs of robbers……………..
#8 by boh-liao on Thursday, 10 March 2011 - 11:12 pm
Ppl miss d whole idea: NR n UmnoB no want competence, accountability, transparency so dat they continue 2 jiak, jiak, jiak n use $$$ 2 buy votes, bribe voters; UmnoB rules, OK!
#9 by yhsiew on Thursday, 10 March 2011 - 11:20 pm
///To date, the licenses of 50 money changers have been cancelled and eight money changers and their directors have been charged and found guilty in the courts, he said.///
Just wonder how much Malaysia lost in illicit outflow caused by these 50 money changers before their licenses were cancelled. These 50 money changers must have found lucrative rewards in money changing business!
#10 by Not spoon fed on Thursday, 10 March 2011 - 11:53 pm
Why asked Najib for remedies? If he and Mahathir knew how to prevent this, they would have known how to prevent this before this happens.
Even now Najib has replied, he still could not solve this hidden old habit. Old habit dies hard. Even former transport minister (Ling Liong Sicked) also has this habit.
For this type of problems, better let Malaysians think over until the coming general election without solutions from them.
If you ask for his solution, you are helping BN indirectly. It would be better to say like Anwar few days ago: If Pakatan become federal government, he would invesitgate until the end root..to catch the big fishes!
#11 by Not spoon fed on Thursday, 10 March 2011 - 11:58 pm
See our south neighbour recently announced to return money back to their people due to surplus? Look East policy of Mahathir is not as effective as “Looking into our south neighbour”. We have a very near and clean neighbour in the south where just half an hour of flight we could learn how to eradicate the old habit (corruption). Certainly flight for hours for Look East (Japan) is more enjoyable than half an hour as there were more “makanan”.
#12 by Thor on Friday, 11 March 2011 - 1:32 am
Tell you what!
Put PR in power and haul every of UmnoBn buggers back.
Seize every single assets that are found to be illegal and I’m sure we’ll recover back more that hundred billion.
Get those “froggies” as well.
#13 by gofortruth on Friday, 11 March 2011 - 3:48 am
RM135.3 billion error or less than 2% of Malaysia total trade is ACCEPTABLE by PM Najib. Its sickening to hear about that!
On the other hand, for a tiny peanut RM2000 Malaysia flags, they interrogated Teoh Beng Hock to death!!!!! What a group of lunatics running the country!!!!!
We need a new Federal Government to clean up the whole house.Period!!!!!
#14 by Godfather on Friday, 11 March 2011 - 8:45 am
GFI said it was RM 889 billion; Najib says it’s ONLY RM 135 billion. Sap sap sui lah….what’s a hundred billion here and there amongst friends like Taib, Daim…..
#15 by Godfather on Friday, 11 March 2011 - 9:09 am
Wasn’t a Menteri Besar implicated in an illegal transfer of RM 10 million overseas via a money changer ? Was the money changer charged ? Was the Menteri Besar charged ? Did the MACC investigate where the money came from ?
I guess they are all squatting under the rambutan tree, smoking their homemade joints, and contemplating the bigger affairs of this world.
#16 by dagen on Friday, 11 March 2011 - 9:16 am
Really one meh? Only few percent ar? How come wait for kit siang to ask in parliament then only say this? Whaaa. I tell you hoh. 2% or not. Dont care. Look. ONE HUNDRED AND THIRTY FIVE billion ar. Not small ar you know or not. Huh? Know or not?
See got 16.5m constitutional malays in the country. If umno want to be unfair can orso. No problem one. Give lah all 185billion to 16.5m malays. Then like that hoh every malay can get 11,200 ringgit ar. Know or not? Every malay man, woman and small kid and baby and orang tua tat tat lang orso can get 11,200 ringgit ar. If one malay family got 7 people then every family total can get RM78,500!
Whaaa. Fatt tatt lor. Like that. Every malay family (7 people) can straightaway buy one low cost flat – cash ar. No need bank loan. Installment pay pay pay until die. No need lor. Cash pay all. Everything. Can orso consider buy medium cost apartment. Pay 50%. Bank loan only 50%. OK what. Then no need dat najib wat wat “my first home” thing.
Some more hoh. You see. 16.5m constitutional malays. One family got 7 people then got how many malay family hah? 2.3m malay family. Correct or not. If 10% use the money buy property then developer must build 230,000 units oredi. Many work. Many project. Contractor happy. Supplier orso happy. Everybody happy. That time everybody fatt tatt.
Of course Tokku’s response is lan CIAU.
#17 by TheWrathOfGrapes on Friday, 11 March 2011 - 10:14 am
/// Najib is not a good auditor. He should pass the job to a more competent person. ///
I thought the idea is NOT to have a good auditor or a competent to do the job – so that the shenanigans and gravy train can keep on chugging along.