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Author: Tan KW   |   Latest post: Mon, 23 Jul 2018, 05:15 PM

 

RM1 trillion debt: We have gotten the measurement and messaging wrong? - felicity

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Saturday, June 23, 2018

 
I like less corruption. I like the ability to change the management of the government as long as they are for the people. I like a government that is transparent. I like a government which is more truthful and not trying to spin.

My article here is to put Malaysians into the mindset to think rather than be blindly led. I have always been supportive of this government or the people behind them long before the change. But things have to be put into clear perspective.

Over the last 6 weeks, we have been bombarded with the RM1 trillion debt message. I think no one single day, we have been told and drilled that Malaysia is now a country with huge debt and we have to tighten our belt, and to show patriotism there is a a save the country fund called Tabung Harapan. To be fair, the government has also told us that the fund is not meant to repay all the RM1 trillion debt but it is more of being a message to allow Malaysian to show that we care about the dire situation of this country.

First of all, let me put this question into the mind of all Malaysians. Are we serious with the message of having a ZERO debt country. Name me a country that has zero debt. Singapore? China? US? Japan? South Korea? These are countries which we are taking as our benchmark. Countries which have almost no debt - Norway, Saudi - and we know how their wealth came from. I have not heard from their government that they want to pay off their debt.

(Prof Jomo and Zeti are in the Council of Elders. I would love to hear from them on this perspective, as they have been quiet.) So far the ones that have drilled the high debt message are the politicians - Lim Guan Eng, Tony Pua, Mahathir Mohamed. They still want to win more seats in parliament, please remember. I want to hear from the professionals. The BNM governor, ex and current and others whom have been helping the government.

We mentioned that our debt during then was about RM200 billion. Today, it is RM1 trillion - I am not going to challenge the ones used by Moody's as their record still shows our debt is RM650 billion. In fact, I have not heard from any other government that they are willing to show to people how bad is their debt situation when they are the government. Is this a manner to create confidence? As opposition, yes! Not as the ruling government.

Now, let me give a case study from our past in 1990s and now. One of the barometer to show the difference between those days and today is the wealth of Khazanah. To put into perspective, look at this link to see the history of Khazanah. From its creation in 1994, now Khazanah has Net Worth of RM116 billion and assets of RM157 billion. Back in 1994, it was probably zero in assets.

There is a difference between then and now. TimeDotCom, Malaysia Airport, PLUS Expressway, UEM, Axiata, IHH and many more were under private hands. Today, it is owned by the government and obviously it can be sold. With more assets, there is a chance that there would be more debt. One of the measurement which have been used largely to measure how much debt the country can take is Debt/GDP. Even then as above, it is not the right measurement as countries like China and Singapore for example have huge reserves. They have huge sovereign controlled assets which can be utilised when needed.

Besides Khazanah, there are several more sovereign funds which are owned by the country such as KWAP, Johor Corp. Back then in 1990s these organizations were worse off than today. Example, KFC which is now part of Johor Corp was under private hands and the good company was wrongly mismanaged.

As a country, the private savings is also much healthier. EPF is now having fund size of around RM700 billion. I believe back then it was probably around RM200 billion. The wealth of the people is also the wealth of the country.

Truth be told, our country has progressed but of course as compared to many other countries and even our neighbors, we may not have come out ahead. Generally, the world has moved on to the better. And we have to call spade a spade.

Anyone who is saying I am not fair to this government should read this where I wrote it in 2013. A spade is better off being shown as a spade. So that as the people of this nation we are better off better educated - on the economy.
 
 

 

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  6 people like this.
 
Undi_PKR If LGE the problem why not appoint Anwar or Rafizi as Finance Minister?
25/06/2018 17:39
Larrytrader Need to stop boasting 1MDB news until stock market tumbles
25/06/2018 17:44
signalmw 若将马股市值减少归咎政权更迭,这对希盟政府并不公平,毕竟市场也面对两大利空,分别为中美贸易战及美国联储局升息。
25/06/2018 17:50
DreamWarrior Posted by ABCnewbie > Jun 25, 2018 05:37 PM | Report Abuse

1MDB service debt costs over the next 5 years. If Malaysia is under previous government, do you think this news will be published?
http://klse.i3investor.com/blogs/savemalaysia/162657.jsp
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Why wud & why shud it be published, if all that it intended was quite obviously to badmouth Ah Jib & his administration, to do the maximum damage.
25/06/2018 19:47
DreamWarrior Posted by Undi_PKR > Jun 25, 2018 05:39 PM | Report Abuse

If LGE the problem why not appoint Anwar or Rafizi as Finance Minister?
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Hv to gv one big post to DAP lor.

BTW, I wud try Azmin.
25/06/2018 19:51
DreamWarrior Posted by iloveamsterdam > Jun 25, 2018 02:35 PM | Report Abuse

layman saying, FM is poking his nose into too many things. like u said, can get involved but let's not forget the day-to-day main responsibilities.
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He wants to play hero lor
25/06/2018 19:59
DreamCruiser Muhyiddin is always the cool, calm, restrained type, but at the same time quite assertive when the situation demands it. He wud make a good Fin Min.
26/06/2018 09:32
2nd_Dream oh shit....not Muhyiddin....he screwed up our Education system when he was Education Minister
26/06/2018 09:35
ABCnewbie DreamWarrior
Still unable to come to term that 1MDB is the biggest con job by Najib administration? Still dreaming? Hello, Malaysia lost billions already and all you can say this is to badmouth Najib. Please show what Najib said or evidence on 1MDB that you found worth to debate (even Arul Kanda's statements). I am willing to start new forum should you need to.

Posted by DreamWarrior > Jun 25, 2018 07:47 PM | Report Abuse

Posted by ABCnewbie > Jun 25, 2018 05:37 PM | Report Abuse

1MDB service debt costs over the next 5 years. If Malaysia is under previous government, do you think this news will be published?
http://klse.i3investor.com/blogs/savemalaysia/162657.jsp
___________________________________________________________________

Why wud & why shud it be published, if all that it intended was quite obviously to badmouth Ah Jib & his administration, to do the maximum damage.
26/06/2018 09:46
egearcentral No good Education Minister so far. The past few Edu Ministers just tried to make students memorise things earlier than they should and claim all the credits after. No learning process and just pump unnecessary info into the brain and then exam, that's it. Kids don't understand "why", they just "memorise". The former is learning and the latter is suffering.
26/06/2018 10:38
egearcentral It is important to publish as Harapan has to show how bad BN was. If not, similar case will resurface in the future as Rakyat will not pay attention to corruption in the coming election. Rakyat has been OK with corruption for the past 61 years as they think it is normal and won't do much harm to the country.
26/06/2018 10:40
DreamCruiser Posted by 2nd_Dream > Jun 26, 2018 09:35 AM | Report Abuse

oh shit....not Muhyiddin....he screwed up our Education system when he was Education Minister
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'Screwed up' in what away. Pls elaborate.
26/06/2018 10:43
2nd_Dream he reversed the decision to use English as medium for Math & Science

https://www.theguardian.com/world/2009/jul/10/malaysia-tefl
26/06/2018 10:48
obinam1967 Say, you are in charge of an ailing co and you want to turn it around.If you want the banks to borrow you money at an attractive rate & you want investor to invest in your company, do you tell them that your company is in deep shit. Bank/investor will not want to risk their money regardless whether you tell them that the company is in good hands now.
26/06/2018 10:50
DreamCruiser Posted by 2nd_Dream > Jun 26, 2018 10:48 AM | Report Abuse

he reversed the decision to use English as medium for Math & Science

https://www.theguardian.com/world/2009/jul/10/malaysia-tefl
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Do countries like South Korea, Japan, China, Germany, France, Italy etc. also use English for their Maths & Science?
26/06/2018 12:34
DreamCruiser Posted by egearcentral > Jun 26, 2018 10:40 AM | Report Abuse

It is important to publish as Harapan has to show how bad BN was. _______________________________________________________________________

So, this is the major Pakatan Harabull agenda then. I guess, that is their prime purpose in life huh. Other than that, no creative, original & viable vision, mission & strategy of their own.
26/06/2018 12:40
DreamCruiser Posted by egearcentral > Jun 26, 2018 10:40 AM | Report Abuse

It is important to publish as Harapan has to show how bad BN was. _______________________________________________________________________

So, this is the major Pakatan Harabull agenda then, I guess. That is their prime purpose in life huh. Other than that, no creative, original & viable vision, mission & strategy of their own.
26/06/2018 12:41
relaks @DreamCruiser
BM vocabulary limited. X sufficient as language of Sci&Tech. Easy way out, use Eng.
26/06/2018 12:42
DreamCruiser Posted by relaks > Jun 26, 2018 12:42 PM | Report Abuse

@DreamCruiser
BM vocabulary limited. X sufficient as language of Sci&Tech. Easy way out, use Eng.
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Mandarin vocab not limited? You think all current English words in STEM field are original Anglo-Saxon?
26/06/2018 12:44
relaks Mandarin vocab.lagi dahsyat... but play on sound... agak2 tu macam, tu macam la! Wakakah! But they managed. What’s our ppls problem u think?
26/06/2018 12:48
DreamCruiser Posted by DreamCruiser > Jun 26, 2018 01:04 PM | Report Abuse X

Posted by relaks > Jun 26, 2018 12:48 PM | Report Abuse

Mandarin vocab.lagi dahsyat... but play on sound... agak2 tu macam, tu macam la! Wakakah! But they managed.
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Yah lor. Klu tia olang tu, Xiao Li yati Shelly, Xiao Xian yati Susan, Yeo Lin yati Jolene, Yeo Ang yati Joanne etc. & vice versa.
26/06/2018 13:05
relaks Huh?!! Wakakah!
26/06/2018 13:06
DreamCruiser Posted by DreamCruiser > Jun 26, 2018 01:09 PM | Report Abuse X

Yah lor. Lu lg bulum tau gah.
26/06/2018 13:10
relaks Just in case org lain ingat I bluff. Baca la this article. Really really based on sound .... lol
https://www.whatsonweibo.com/trump-two-different-names-chinese/
26/06/2018 13:14
Imemyself Posted by DreamPredator > Jun 25, 2018 11:21 AM | Report Abuse

Posted by Imemyself > Jun 25, 2018 10:51 AM | Report Abuse

Suprised to know some people think high debt is fine.
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Can you gv some good examples of countries with zero debt?
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Hello, I am talking about high debt not zero debt. For countries with zero debt , google yourself. TQ
26/06/2018 13:15
DreamPredator Posted by Imemyself > Jun 25, 2018 10:51 AM | Report Abuse

Suprised to know some people think high debt is fine.
______________________________________________________________________

Can you gv some good examples of countries with zero debt?
______________________________________________________________________

Hello, I am talking about high debt not zero debt. For countries with zero debt , google yourself. TQ
_______________________________________________________________________

Aaahhh. I see. So, looks like you are NOT able to gv us any examples.

And what high debt are you talking about? So many countries hv debt, and Malaysia is not alone. Many of them much higher debt than Malaysia. Did you buy your car & your house with cash? without only loan from the bank?

Here you are. Start learning something. Instead of simply parroting what you hear every day from your favourite Pakatan Harabull mouthpiece.

https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
26/06/2018 13:52
relaks I sememangnya org kampung. X pandai sangat. Just stumbled upon this. For your reading pleasure , harap2 some of u faham... Very deep oh.... https://thecoverage.my/news/will-happen-malaysian-government-paid-off-national-debt/
26/06/2018 13:56
Imemyself Dream Predator ,please tell me having high debt or low debt is good. Yes go and buy company with high debts. No wonder you are always in debt and I am debt free.

https://www.therichest.com/rich-list/rich-countries/the-only-5-countries-in-the-world-living-debt-free/

Anyway my issue is high debt not zero debt. Don't confuse.
No people is parroting. Common sense will tell you having less debt is better than high debt.
26/06/2018 14:07
DreamPredator Posted by Imemyself > Jun 26, 2018 02:07 PM | Report Abuse

Dream Predator ,please tell me having high debt or low debt is good. Yes go and buy company with high debts. No wonder you are always in debt and I am debt free.

https://www.therichest.com/rich-list/rich-countries/the-only-5-countri...

Anyway my issue is high debt not zero debt. Don't confuse.
No people is parroting. Common sense will tell you having less debt is better than high debt.
_______________________________________________________________________

And which school of economics, in which uni, did you graduate from?

Mr A is debt free. Got total assets RM1 mil, let's just say.

Mr B is not debt free, got debt of 350k, let's just say. But also got total assets RM3.75 mil.

Which one is wealthier, Mr A or Mr B?
26/06/2018 14:17
kUlar_psiii_psiii I think correct question one should ask is the category of debt - good debt & bad debt?

good debt - you are able to serve & at the same time leverage on the borrowing

bad debt - kena tiu tiap tiap hari sama along to pay loan interest, unable to serve principal

so the question now, is our country debts a good debts or bad debts ?
26/06/2018 14:23
Imemyself Does Malaysia have external assests like UK or plenty of reserves like Singapore or RM is use as international currency like US? Yes Malaysia has lots of internal assests like land. Are you prepared to sell your precious Petronas or land? Is it sustainable.
I agree with kUlar.
26/06/2018 14:30
Imemyself Yes you can have high debt if you have resources to generate the income to pay up the interest or reduce the debt. The problem is the government does not have the means to pay the debt That's why GST is implemented in the first place to generate income to pay the debt.

I agreed having debt (not too high) is good to generate cash flow and the money can be utilised for development.

I remember years ago I invested in Megan with low PE but high debts. I lost money in that counter. From that moment, I always look at the debt/equity level before I invest.
26/06/2018 14:55
DreamPredator Posted by Imemyself > Jun 26, 2018 02:55 PM | Report Abuse

Yes you can have high debt if you have resources to generate the income to pay up the interest or reduce the debt. The problem is the government does not have the means to pay the debt That's why GST is implemented in the first place to generate income to pay the debt.
_______________________________________________________________________

Lai dat only gah. Lai dat hapit lor. Finito lor. Becos Pakatan Harabull govt oledy cancel GST, then how to pay debt lor.

Pusing pusing putar putar ciagap yuga, lu ini. Just like new Fin Min.
26/06/2018 15:24
Imemyself That's why have to cut here and there and cancel this and that lor.
26/06/2018 15:29
DreamPredator Posted by Imemyself > Jun 26, 2018 03:29 PM | Report Abuse

That's why have to cut here and there and cancel this and that lor.
_______________________________________________________________________

Bullshit craptalk yuga lor
26/06/2018 16:41
egearcentral Debt is OK if you can make good use of the money to make more money. As for 1MDB, ...
26/06/2018 18:30
DreamSorcerer That is what the 1MDB idea is all about. But your Pakatan Harabull camp kept putting so much relentless pressure on Ah Jib. If it is even one tenth as lousy & crappy as it had been made out to be, then the China GLC consortium wud not hv been so stupid as to fork out RM18 bil to take over the Edra Energy component of 1MDB.
27/06/2018 10:52
ABCnewbie Haha. I love it when people talking about Najib scandal-1MDB. See how much Najib had in his linked residences. Crazy total amount of cash and goods!! Almost 1 billion ringgit...
https://www.thestar.com.my/news/nation/2018/06/27/amar-singh-pc-1mdb/
27/06/2018 11:55
Tom Retard liar DreamPredator a.K.a dreamsorcerer.....karma will take care of him
27/06/2018 11:59
DreamSorcerer Posted by ABCnewbie > Jun 27, 2018 11:55 AM | Report Abuse

Haha. I love it when people talking about Najib scandal-1MDB. See how much Najib had in his linked residences. Crazy total amount of cash and goods!! Almost 1 billion ringgit...
https://www.thestar.com.my/news/nation/2018/06/27/amar-singh-pc-1mdb/
_______________________________________________________________________

Big deal. In our place, when you're a politician fallen from high power, anything can be done to implicate you in some ridiculous 'crime'.

I don't know how old you are, and if you hv any recollection of the time Anwar was sacked by TM in 1998, and the sordidest of stories very likely made up to nail him that time. Including the appalling homo stuff purportedly involving him and (1) Azizah's personal chauffeur; (2) an Indonesian fashion-designer foster brother boarding at their home; and (3) a 40 year old Pakistani journalist cum speech writer friend of Anwar.

The Indonesian & Pakistani even 'confessed', after some time in lock-up, so that they get out & return to their countries. While the local chauffeur had his glorious day in court, claiming that he was once 'done' fourteen times in a single day by Anwar.

Yep, any BS can be manufactured to get a fallen political foe.
27/06/2018 12:16
DreamSorcerer Posted by Tom > Jun 27, 2018 11:59 AM | Report Abuse

Retard liar DreamPredator a.K.a dreamsorcerer.....karma will take care of him

Posted by Tom > Jun 27, 2018 12:09 PM | Report Abuse

classic stupeeed dreamsorcerer, lol
karma will talk care of you silently
_______________________________________________________________________

LOL. Come on then, Mr. Karma. Come & get me.

And who is really the retard now?
27/06/2018 12:16
ABCnewbie DreamSorcerer
I am old enough in 1998 during Reformasi era. Just finished my Uni study. I don't believe any of Anwar's sodomy cases. However during that time our country in recession and I support Tun M in 1999 election. Even after Tun M stepped down I still voted for BN in 2004 (during Badawi time). Only in 2008 & 2013, I voted for PR (Pakatan Rakyat). Why, because I want to see 2-party system in Malaysia. I thought I'll never experienced it but here we are, change of government in 2018.
So why you say 1MDB is manufactured against Najib? If Najib-BN had won the election, do you think Najib will repent? I've been following 1MDB since it was first brought out by opposition and initially I thought it was just some scandal trumped up to gain support. But with mounting evidences, unbelievable statements made by Najib+gangs, prosecution by Najib-gangs on the personnel involved and many more irrational actions and laws just to silence the 1MDB issue, it clear to me that 1MDB is colossal and a con job. That is why I research and gain understanding on this 1MDB. If you want debate like DreamWarrior (not sure if you are the same person), you are welcome.


Posted by DreamSorcerer > Jun 27, 2018 12:06 PM | Report Abuse

Posted by ABCnewbie > Jun 27, 2018 11:55 AM | Report Abuse

Haha. I love it when people talking about Najib scandal-1MDB. See how much Najib had in his linked residences. Crazy total amount of cash and goods!! Almost 1 billion ringgit...
https://www.thestar.com.my/news/nation/2018/06/27/amar-singh-pc-1mdb/
_______________________________________________________________________

Big deal. In our place, when you're a politician fallen from high power, anything can be done to implicate you in some ridiculous 'crime'.

I don't know how old you are, and if you hv any recollection of the time Anwar was sacked by TM in 1998, and the sordidest of stories very likely made up to nail him that time. Including the appalling homo stuff purportedly involving him and (1) Azizah's personal chauffeur; (2) an Indonesian fashion-designer foster brother boarding at their home; and (3) a 40 year old Pakistani journalist cum speech writer friend of Anwar.


Yep, any BS can be manufactured to get a fallen foe.
27/06/2018 12:34
Tom Post removed. Why?
27/06/2018 12:43
DreamSorcerer Posted by Tom > Jun 27, 2018 12:43 PM | Report Abuse

classic stupeeed dreamsorcerer, lol
karma will talk care of you silently
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Lovely, repeating tape recorder sound.

;-P
27/06/2018 12:56
DreamSorcerer Just look at what's happening to the market. All due to itu klejaan balu Pakatan Harabull pinya pasat lor. Itu bullshit craptalk punya new Fin Min pinya itu.
27/06/2018 16:52
relaks Siapa suruh bili skrg? Dah tau ini tsunami will last for some time... huhuhuh

Anyway, how low klci will go u think ...? I’m waiting for rock bottom lol! Hohoho...
27/06/2018 17:12
DreamMarauder I gv Pakatan Harabull govt one week, to turn the market around. Just one week. If they cannot do that, then they don't hv any business pretending at being a govt. They shud all resign en masse.
27/06/2018 17:43
DreamMaster I'll second that. They're just a big, bad bloddy bunch of bullshitters, cowcrappers & poison spreaders.
11/07/2018 09:23
Want2Win ki ki ki

I support also
11/07/2018 09:36
egearcentral DreamX finally gets worshippers. LOL.
11/07/2018 10:57


 

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