Malaysia can grow 5pc and handle its debts - Finance Minister

 Publish date: Thu, 13 Sep 2018, 02:16 PM

HONG KONG: Malaysian Finance Minister Lim Guan Eng said on Thursday that the Southeast Asian country can sustain 5 percent annual economic growth as its new administration reviews mega projects and copes with hefty debts left by the previous government.

In August, Malaysia cut its 2018 growth forecast to 5 percent, from 5.5-6.0 percent and reported much slower second-quarter expansion of 4.5 percent, compared to the previous period’s 5.4 percent.

Slower growth also signals the economic risks facing 93-year-old Mahathir Mohamad after his stunning election win in May that brought him brought to the premiership in Southeast Asia’s third-largest economy.

Lim, a former banker and chartered accountant, told the CLSA Investors’ Forum in Hong Kong that there is an urgent need to review expensive development projects because Malaysia does not have “enough money to pay for them.”

“We want to see reductions (in debt) over the course of 3 years and at the same time we are able to service these debts, we will not be in default,” Lim said.

“When we are talking about belt-tightening, cost rationalisation, then we are doing it.”

Before being named finance minister in May, Lim was chief minister of Penang state, a popular tourist destination. Earlier this month, he was acquitted of corruption charges brought against him two years ago when he was a senior opposition leader.

Lim will oversee the new administration’s first budget in November, which he said on Thursday will not run a deficit.

After taking over, Mahathir repealed an unpopular goods and services tax. He has pushed to review major infrastructure projects launched by the past administration. About the need for tough fiscal measures, Lim said “It’s painful, but it’s necessary... I’m willing to be the most unpopular finance minister in Malaysian history.”

The minister said Malaysia will not be a victim of the contagion effects from emerging markets due to its strong trade and current account surpluses and high foreign-exchange reserves.

“I think that would put Malaysia off the radar as far as being victim of the contagion effects from ... so-called emerging markets currency risk. I’m still confident that we should be able to ride out the storm, if any.” - REUTERS


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EngineeringProfit PAR EXCELLENCE

(KEEP IT UP......)
13/09/2018 22:35
EngineeringProfit ....but what debts



.....the government to pay off the RM50 billion debts...

The prominent economist said the 1MDB debt was not “explicitly government-guaranteed”.

“It is government-guaranteed debt only in the sense that the signing authorities are associated with the government,” he said.

Confusing......but if not the gomen's debt......then full stop....no?
14/09/2018 20:24
EngineeringProfit The old gomen is the guarantor......

...now we got new gomen

Free from that debt....no?
14/09/2018 20:37
EngineeringProfit Peninsular to learn from their Bornean counterparts.....

.......develop truly Msian culture

in order to make Msia great again

15/09/2018 09:03
EngineeringProfit https://www.freemalaysiatoday.com/category/nation/2018/09/15/spare-these-3-sectors-from-budget-cuts-economist-tells-ph/

Education, health and welfare should not be subjected to any austerity measures......

.....One year of budget cuts should be good enough for the government to recover from the national debts. Next year on, the government should have a better budget
15/09/2018 09:36
EngineeringProfit https://sg.news.yahoo.com/initial-jitters-economists-warm-guan-011746048.html

A man's integrity, forthrightness and determination will stand the test of time.

Oahological liars and sinners don't

A democratic country leader must respond to the ppl's critics

Tyrants don't
15/09/2018 10:00
DreamKaiser This new fin min is really amazing. He can keep on harping on the same shitty stuff day & day out, without respite. But what his own Jalan Pinhorn bungalow case? Conveniently swept under the carpet by the new AG, of course, who also happens to be his long time old friend & personal lawyer.
17/09/2018 14:54
EngineeringProfit A righteous and honest person like him.......

........must not waste time entertaining distractors

Anyone with some gray matter should know that....

the minimal reward he deserves to get is.........

.....let him have a peace of mind to save the exploited, squandered, and

nearly bankr...... nation

17/09/2018 22:46
Fortune Bull At least LGE start to talk positively!
17/09/2018 22:58
Fortune Bull Posted by Lk036 > Sep 17, 2018 11:36 PM | Report Abuse

End of the day, lge still better than those pusing kaki who wear sarung and can turn 360 degree but remain the same. How to progress if politic mix with religion but not really sembayang.

Answer : You mean those PAS holymen who are so afraid to die in car accident that they only use Mercedes Benz as official vehicle in Kelantan! They rather protect Najib and his looters but cut hands of those who steal food because of hunger!
17/09/2018 23:46


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