Blog: Malaysia beware: Sri Lankan economic crisis inflicted by self-serving elite By Anis Chowdhury & Jomo Kwame Sundaram

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6 comment(s). Last comment by beinvested 2022-04-21 14:47

ttaniges

76 posts

Posted by ttaniges > 2022-04-20 16:25 | Report Abuse

Excellent article pointing out how exactly SL failed as a nation rather.

stockraider

31,556 posts

Posted by stockraider > 2022-04-20 19:48 | Report Abuse

Sri Lanka govt chase for popularity base on racist policy....msia should not follow this path to hell mah!

Tobby

7,397 posts

Posted by Tobby > 2022-04-20 20:21 | Report Abuse

Not surprise if Malaysia goes bankrupt! EPF is now very weak! Even PNB is weak! Our banks are weak! Attack ringgit and the dominos simply fall down easily!

beinvested

2,378 posts

Posted by beinvested > 2022-04-21 13:35 | Report Abuse

1. SL - Collection from tax being reduced. The gov earned lesser. Lack of funds to repay the borrowings by the gov.

2. Reduced income from export of tea and rubber.

3. Could have much lesser income from the spending by the arrival of tourists.

4. These causes have given the gov the burden to repay the loans/bonds, worse if the loan denominations are in USD/foreign currencies (Now is USD1 = SL344, getting lower).

5. BUT, Malaysia can only be failed if there are:- reduction of income by the gov such less exporting products, lesser collection by LHDN, poor price for petroleum, palm oil/oil palm and rubber, less product from farming such as vegetables/chickens/cattle/durians/eggs...
6. Make sure no corruption practices (steal money) that can cause the gov to suffer.

0 seconds ago

AlsvinChangan

699 posts

Posted by AlsvinChangan > 2022-04-21 13:42 | Report Abuse

IF malaysia doing so good why need to raise statutory debt limit to 65% of GDP last year ?

beinvested

2,378 posts

Posted by beinvested > 2022-04-21 14:47 | Report Abuse

You are right, borrowing more is no good.

In the recent years, many countries are led by those "not so smart" people, but many rakyats/the citizens are smarter. Living on credit term is undesirable, but Malaysia is fortunate because we have many hard working rakyats/pendatang else our economies will be choked like some countries now. Others still have confidence with Malaysia which have the ability to service the loans taken by the government.

We also have the politic stability so there will not be any war in the near future. Meaning, the CCRIS report for Malaysia is good.

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