Posted by ABCnewbie > 2018-05-24 21:32 | Report Abuse

See below statement from LGE
Let me take this opportunity to explain the RM1 trillion worth of liabilities as of Dec 31, 2017, as previously announced.

1. The official federal government debt is RM686.8 billion (50.8 percent of the gross domestic product, or GDP).

2. In addition, the government is already committed to paying for government guarantees for various entities that are unable to service their debts. This amounts to RM199.1 billion (14.6 percent of GDP).

The committed government guarantees would include entities such Danainfra Nasional Bhd (RM42.2 billion), Govco Holdings Bhd (RM8.8 billion), Prasarana Malaysia Bhd (RM26.6 billion), Malaysia Rail Link Sdn Bhd (RM14.5 billion) as well as an estimated RM38 billion for 1MDB.

Based on the two items above, the federal government debt would amount to RM885.9 billion. This represents the 65.4 percent of the GDP as highlighted by Prime Minister Dr Mahathir Mohamad yesterday.

3. However, in addition to the above, the federal government is also committed and obligated to make lease payments (including rental, maintenance and other charges), for a whole list of “Public-Private Partnership” (PPP) projects such as the construction of schools, hostels, roads, police stations, hospitals, et cetera. The lease commitments which were designed specifically to circumvent the federal government guarantee and debt limits amount to RM201.4 billion (14.9 percent of GDP).

Hence, the federal government debt and liabilities amount to a total of RM1,087.3 billion or 80.3 percent of the GDP as of Dec 31, 2017.

Posted by ABCnewbie > 2018-05-24 21:40 | Report Abuse

Winter Bear,
I do not agree with you. At least we all now know the whole picture of the debt. It will let us dissect this info and make our judgement. Now government that transparent will benefit us all. We will then wait for their action plans and see if this debt can be reduced down the road (in 4-5 years time until next election)

Posted by shortinvestor77 > 2018-05-24 21:46 | Report Abuse

He is not a certified chartered accountant lah! He is a politician forgotten he is at ruling party, unable o separate the types of debts, sum them up together to scare the opposition party and hence affected the country.

Posted by elbrutus > 2018-05-24 21:48 | Report Abuse

1 trillion or for that matter IMDB 38b debts ...shit still hit d fan n you n i n all citizens cum our next generation got to pay thro our noses ...so is that any CONSOLATION ??? ...u tell me bros ...damnnnnn

Posted by calvintaneng > 2018-05-24 21:51 | Report Abuse

Debt to GDP for Malaysia only 85% is still ok compared to Singapore, Japan & USA

They all are from above 100% to 240% Debt to GDP

See

https://www.statista.com/statistics/268177/countries-with-the-highest-public-debt/

Posted by elbrutus > 2018-05-24 21:51 | Report Abuse

n also it is not so simple as this 38b debt but d consequeces leading to a SNOWBALL EFFECT thats is most worrying n we r damn lucky HP won ...if not u n i really all go to HOLLAND n plant tulips n make clogs ...hahaha

Posted by ABCnewbie > 2018-05-24 21:55 | Report Abuse

Not sure which PC you are talking about. 1MDB debt figure always around 45 billion and during Najib as FM+PM, he never give us the exact figure. Now we know is 38 billion guaranteed by government. However the rest picture of the guaranteed debts was never publicly acknowledged by Najib. He touted that the debt was below threshold 55%. So we will never find out the actual debt if BN won GE14. The rest of companies mentioned still need to tell us if they can pay their debt or not.

Posted by SmallFish8 > 2018-05-24 21:57 | Report Abuse

Give people sometimes. as just few weeks. LGE not god cannot just by a click then everything can reset.

Posted by bagan > 2018-05-24 21:58 | Report Abuse

That 38bil is nett debt? No right...they still a lot of asset right?

Posted by ABCnewbie > 2018-05-24 22:01 | Report Abuse

1MDB has only 1 employee. No more assets

Posted by tksw > 2018-05-24 22:03 | Report Abuse

ABCnewbie sifu, some companies controlling LRT MRT ma, got some value. Even 1MDB， still got hope to recover some money ma. Hopefully can prove corruption and money laundering, than confiscate the assets of the corrupter to recover

Posted by KillBuffett > 2018-05-24 22:03 | Report Abuse

If you watched the press conference, it's very misleading, as if the debt is caused by 1MDB. He should state that very clearly when doing the announcement. I am a die hard PH supporter, but what LGE is naive and seems unprepared.

TO LGE, you are not opposition party anymore. Please be prepared when you make announcements. Any words come from your mouth will cause volatility and FDI dislike volatility.


TO ABCnewbie:

It's his responsibility to make it clear at 1st. Not to give details the other day. This is simply not right. IF he mentioned this during the press conference, then we at least to keep some confidence of foreign investor. He made the announcement after the market close today, to me is like a contingency plan, because he knows he makes the mistake and he needs to correct it immediately.

Beside what make me more upset is, there is no solution to it. What is the details of the debt. How many was invested in Infra and which the current net worth is much more than debt.


If you are investor foreign or domestic and have a fair understanding about Malaysia, you will start worrying. We have 80% debt of our GDP and until now, our GOVT has no solution at all. And to most of us, is like everyday bringing bad news and make the previous government a scapegoat.

PS: I am a die hard PH supporters, and I am going to give them 3 months honeymoon period. So, I am kind in my comment at this moment.

Posted by tksw > 2018-05-24 22:05 | Report Abuse

ABCnewbie sifu, got some ma, those money confiscate by foreign countries leh...

Posted by tksw > 2018-05-24 22:11 | Report Abuse

winter bear sifu, those hospital, roads and schools cannot generate direct income for the government ler, unless privatised... only can be used by people

Posted by ABCnewbie > 2018-05-24 22:11 | Report Abuse

KillBuffet
I understand your frustation. I am not PH supporter. I only support PH because of Tun M (1MDB issue). I don't believe their 100 days promise as it is difficult to implement but I admire their courage. If successful then good for them. If not, then in 5 years time Rakyat will decide wether to continue the contract or not (Taken from Rafidah). Even if LGE is sensationalize the debt and 1MDB issues, he should know that Rakyat is watching and evaluating.

Posted by tksw > 2018-05-24 22:14 | Report Abuse

Everyone who take over office, be it government or private company, tends to dig shit first ler, clean the shit got credit.

Posted by tksw > 2018-05-24 22:19 | Report Abuse

winter bear sifu, no direct income, but the people still can derived benefit, and it helps the people (rakyat) to generate income or reduce burden if they function well. Just that the figure could be lower if there is no corruption involve

Posted by VenFx > 2018-05-24 22:22 | Report Abuse

It is necessary for LGE to let Malaysian know how seriously the fraud conducted by 1mdb from jibby's cronies.
We deserve to know bow bad is this scandal impact all Malaysian.

LGE does what he has to do .

Posted by KillBuffett > 2018-05-24 22:23 | Report Abuse

Winter Bear,

Basically, I earn some Kopi money because of his naiveness. (I bought fbmklci-h4p) , I sound it out because I want him to do better. He needs to understand he is no longer opposition party anymore, and he doesn;t speak for 1 state. He now represent CFO of Malaysia. My previous post:

Imagine you are an investor in a company and you are attending AGM. The CFO and CEO announced during the AGM the company debt to equity is in high risk level. What they plan to do cut salary, and retrenchment. This action will save company enough money for paying interest.

If you attend an AGM like this, what is your response?

1 thing that foreign investor dislike is volatility. Now he is creating volatility out of nowhere, so he can get his personal pride.
He has took the oath for how many days? He acts like he knows every thing inside out, and blame on the previous govt (again, I need to strongly insist I AM A DIE HARD PH SUPPORTER, but I have this feeling now).

Alots of us more or less know what happen, so WE NEED SOLUTIONS!!!. Otherwise it make no difference.

Stop this, please. Without FDI, Malaysia is not able to survive.


https://www.theedgemarkets.com/article/market-fell-not-solely-rm1-trillion-government-debt-news-%E2%80%94-mof

The above link clearly shows that he is making this right.

Posted by VenFx > 2018-05-24 22:23 | Report Abuse

The rest is up to individual how to read the scandal .
Lets prepare for it.
United we shall prevail .

Posted by apolloang > 2018-05-24 22:32 | Report Abuse

that's shows that he's straight,not a crooked person

Posted by bagan > 2018-05-24 22:33 | Report Abuse

They purposely exploded the debt amount so that people support them to sell it out aka privatization to their cronies. RK is in town collecting his bounties at dirt cheap valuations in the name of helping the gov cleaning up the mess...just watch they going to make billions in this huge debt scam hahaha

Posted by VenFx > 2018-05-24 22:34 | Report Abuse

We can't cheer every one though. 

Malaysia peopples has strong will to handle whats coming. 
While , the UBAH put in action ... we are willing to take whats coming for a cleaner n brighter future.

Posted by VenFx > 2018-05-24 22:38 | Report Abuse

I trust our Tun M,
And LGE who has excellent track record.

Noises created here doesnt cure anything or solve anything.
My salute to LGE for bring able to scrutinized the nation debt.

I trust many nights candle burnt.
Including Mof team.

I feel grateful for MOF .

Posted by TopEarn1 > 2018-05-24 22:40 | Report Abuse

lol... Winter Bear, stop with all your statement already la. Take this as opportunity LGE given to Rakyat la. Market crash is time to buy low! Its opportunity now! Why argue with 1MDB as we all know is money laundering company. Sit back, relax and buy in when low.

Posted by acgerlok5 > 2018-05-24 22:50 | Report Abuse

bagan...i think its very wrong for you to say RK is in town to collect cheap as cronies.. Please note, RK is a distinguish businessman on his own standing! He doesn't need to be ANYONE's crony in order to be successful. If not, you think how he became so successful in Indonesia, Singapore and even now - HK. He is a smart and shrewd busienssman , that take heed in any opportunity that arises for him to seize a fortune. Please don't talk shit if you don't know the truth.

Posted by KillBuffett > 2018-05-24 22:51 | Report Abuse

Winter Bear,

Frankly, I don't expect so fast, may be the day after the 1st of June when Foreign fund pulled out because of the abolishment of GST.( I bought at 0.08 cents on the morning after reading the Moody reports).

SO he fastens the process, and I am sorry to say I foresee will KLCI will drop further or remain at staus qou (+/- 0.3 %), because he may claim local Malaysian, but not foreign Investor.

Tomorrow may not have a drastic drop like the past 2 days but also don't expext a sharp rebound (wouldn't last).


TKSW, LK036, VenFX,

I strongly agree that public needs to know what the previous government has done, and the current government need to be transparent. NO DOUBT ON THIS.

But, but, but.....

Do it smartly. Yesterday press conference doesn't help the current situation. In fact it makes it worst. (IF HE COMES OUT WITH A SOLUTION OR SOMETHING TO STABLE THE MARKET, I AM OKAY)

What is the difference for him to announce it yesterday and after RAYA when he had a plan to solve this problem? Let the public knows 1 month earlier does it help MALAYSIA ECONOMY?

If they have a more strategic plan on how Malaysia will recover or turnover, at least it will give confidence to the market (NOT ONLY FOREIGN BUT ALSO DOMESTIC)

(I WILL, AGAIN, GIVE THEM 3 MONTHS HONEYMOON. I WILL BE HARSHER AFTER 3 MONTHS, BECAUSE I HAVE HIGH EXPECTATIONS).

Posted by acgerlok5 > 2018-05-24 22:54 | Report Abuse

i wonder all this people here...especially those who commented so much, if you are so capable, why don't you offer yourself to be the finance minister, or go and offer yourself to be his special assistant lah, instead of talking here like a sin kah.(God)... so much of noise but where is your substance? give constructive suggestion, instead of just criticizing and talking nonsense. LGE is just telling the truth, although the truth hurts, but it is the truth. it is like this, if you are diagnosed with 4th stage cancer, you still want your doctor you are fit and healthy and going to live very long live isit? your doctor suppose to tell you continue drinking and gallivanting isit? Of course your doctor will tell you the truth, despite it being hard truth! IF you think your heart cannot take it, then should better stay away from the stock market.

Posted by bagan > 2018-05-24 22:57 | Report Abuse

Acgerlok5, u think rk finance pkr for 5bil for free? A pkr from melaka told me this while paying out voting rm200 allowance to my friend for voting pkr. Rk is mad at jibby for forcing to sell his sugar co to Fgv as well as the gardenia issue. So just wait what his bounties would be hahaha

Posted by VenFx > 2018-05-24 22:59 | Report Abuse

Solution ?
Thats is veey reluctantly... dont you think?

Posted by bagan > 2018-05-24 23:02 | Report Abuse

Actually a pkr mp from Melaka told me that hahaha, where were you guys in the 90s...

Posted by VenFx > 2018-05-24 23:03 | Report Abuse

At some point Malaysian
Has the gut to UBAH,
Because of the ex Rulee trying to sapu everythings
Inside the carpets in order to continue their scam doing.

I strongly suggest Mof Minister is well understand his fellow Rakyat
Who is struggling to know the truths of how badly our nation debt is.

Posted by acgerlok5 > 2018-05-24 23:04 | Report Abuse

Indeed...brainstorming by collective suggestions....if all we do is just complaint, then we are no different from the office politicking aunties lah.... btw bagan, i am not surprise RK support opposition..considering how he was being treated in the past, and please, for God's sake, RK is not a crony! go read his book lah, see how much he helped Umno and MCA in the past. If any consideration should be given, he should be BN "crony" not PH's.. and fyi, businessmen buy both sides, its just that most do not publicize it for fear of being ostracized. just look at what happen to T.fernandes.

Posted by acgerlok5 > 2018-05-24 23:06 | Report Abuse

winter bear, koon yew yin gave more than that lol... definitely not just 200k...

Posted by acgerlok5 > 2018-05-24 23:09 | Report Abuse

bagan, RK cannot be giving 5bil lah...your friend could be sensationalizing some gossip without proof... you think RK crazy ah...giving 5bil will raise eyebrows lah, bear in mind at that point of time, BN is still ruling.... 50 mil i believe lah... nobody is crazy to donate 5 bil as "political funding"

Posted by VenFx > 2018-05-24 23:10 | Report Abuse

Pointless to talk like one know everything.

I'm more concern on the 100 days manifesto now.

PH really progressive.

Posted by relaks > 2018-05-24 23:11 | Report Abuse

Actually, LGE tu “graduated from Monash University in Australia with a bachelor's in economics and was a qualified professional accountant by 1983.
Prior to his political career, Lim was a senior executive at a bank.”
Source: https://en.m.wikipedia.org/wiki/Lim_Guan_Eng

But i guess, he is politikus 1st, tak tau la klau dia dah lupa mcm mana baca a/c .... haha!

LGE tu juga managed to turn Penang to become 2nd wealthiest state in Msia. So, let’s give him a chance to perform at national level?

Posted by bagan > 2018-05-24 23:12 | Report Abuse

I'm telling to surprise u, I'm u that rk is a business man that had put his monies on the winner, and now he is coming for the wager...just wait and see lah...

Posted by relaks > 2018-05-24 23:16 | Report Abuse

Yup, ada baca RK pledged 10% his wealth to help Msia. Yang in latest est.ya... in USD. https://www.forbes.com/profile/robert-kuok/

Last yr should be less. So around RM5b could be correct. RK is a very patriotic person. We are very honored to have him help our nation.

Posted by apolloang > 2018-05-24 23:19 | Report Abuse

many crooks already taken money out of the country

Posted by VenFx > 2018-05-24 23:23 | Report Abuse

The patriots only come back when their country in chaos.

I give my salute to Robert kuok

Posted by KillBuffett > 2018-05-24 23:23 | Report Abuse

acgerlok5:

I love your comment, but your comment has considerable false.
If your are diagnosed with Cancer, your doctor will advise you, what time of treatment that you need. What is the worst case, what is the treatment available.
How long the process will take. What type of pain we will suffer. Prepare the patient for what upcoming.
Where is our treatment now?

VenFX,:

At least have something in the pocket. Go and watch the press conference yesterday, it's like telling to the public:

Malaysia now own that much (details don't know) and is a great difference from the previous official report.
1MBD has cost us how much and blah blah blah...and government has the responsibility to pay the interest.

Again, if PH has discuss the problem internally, and have a strategy to turnover, by that time then only do the announcement, will it make any difference?

Some more, yesterday Tun M said 65%, today LGE said 80%, who should I believe. Actually, Tun M is telling the public using political language.
LGE, please learned.

Posted by ks5S > 2018-05-24 23:23 | Report Abuse

LGE is honest but not smart

https://www.bloomberg.com/view/articles/2018-05-24/malaysia-needs-tactful-handling-of-1mdb-mess?cmpId=yhoo.headline&yptr=yahoo

Posted by acgerlok5 > 2018-05-24 23:23 | Report Abuse

agreed... monitor them but yet also do our part to help...they are after all politicians....and most of them have their self interest in mind first... that's why this election was so important to show all of them, whether PH or BN...that we were the one that can ask them to boot off if they get big headed and corrupted.

Posted by acgerlok5 > 2018-05-24 23:38 | Report Abuse

Kill Buffett :-

-Exactly, btw i think you got my analogy wrongly lol... my point is that if one is diagnosed with cancer... the doctor will first do what is needed to be done - Break the news first. Means the doctor will tell me right in my face " Mr so and so, im sorry but i need to tell you, you have 4th stage XX cancer, and your report shows as such.

-It is definitely wrong if the doctor hide the fact and instead of telling you that you have colon cancer, he decides that by telling you you had food poisoning and colon inflammation, is better on you emotionally.

So, the point from what i notice from LGE these few days, is he decided to break the hard truth first, and let it be dealt with with the market first. because it's no point hiding the truth and try to sugarcoat everything like what the previous govt did. It only worsens the situation and worse, cause an uprising like Venezuela later.

-The problems with accountants is they do not know ho to sugarcoat figures, that's why the blunt statement. the planning and strategizing part of the economy, i do think Tun will probably leave it to the Council of elders and Azmin Ali to "plan"... As far as LGE is concern, he is like the miser in the govt.... guarding the purse.

Posted by acgerlok5 > 2018-05-24 23:53 | Report Abuse

Winter Bear,

it's not the matter of short term or long-term debts my friend. it's what they do with the debts lah brother! USA's debt is almost 19.9 over trillion, but their GDP is more than enough to cover it. Nobody is against the notion of raising debt, get the point through. The whole idea is why raise so much debt to fund a rubbish company like 1MDB, which contributes nothing to the economy and instead raking up so much unnecessary debt to the country! i think that is what irks LGE. The only agenda he has now is to pare down the debts of the country and clear the shit the previous govt left.

Posted by acgerlok5 > 2018-05-24 23:56 | Report Abuse

by the way, assets remains paper wealth unless there is a willing buyer to acquire all the assets. That is if all assets can be sold at the desired value of 50 billions. You have 30 properties worth 35 million doesn't mean anything if you don't liquidate all of them tomorrow and you are still owing the bank 20 million in loans. Assets remain paper assets unless they are monetize...

Posted by TrippleZ > 2018-05-25 00:07 | Report Abuse

Debt and liabilities are not the same thing. LGE should annouced the 1 trillion "debt" with details to avoid unnecessary panic.

Posted by trulyinvest > 2018-05-25 00:14 | Report Abuse

Wether is,1trilion or 600 milion debt, is not the isue. The isue,is 1mdb is a mess and it stil haunt maalysia until now

Posted by VenFx > 2018-05-25 00:17 | Report Abuse

LGE show his commitment and confidence to pare down debt from the ex ruler's miss using of funds.

By exposing the ugly side of our current debt level, it is always wiser and better to let some party to furthur make use of the issue future.

Rating agency PH is not concern in short.