Malaysian debt level is worrisome
After 55 years of rule, the BN government’s national debt is about to hit 55 percent of the GDP. Malaysia’s indebtedness has been increasing about 1% every year. But the deputy finance Minister Datuk Awang Adek Hussin still insists that our debt level is still manageable “It is not at a critical level at the moment. Our self imposed limit or threshold is 55 percent of the Gross Domestic Product (GDP)’, He added. The national debt level in 2007 was RM266 billion but increased to RM456 billion in 2011(53.8%). It is important to take note that the debt increased by leaps and bound after March 2008. With a population of 28 million, every Malaysian has to bear RM16000 of national debt. This is what the government can show after 55 years of uninterrupted continuous rule.
Beside If we were to take into account the debts guaranteed by the federal government, the total debt exposure of the federal government hit RM573 billion in 2011 (equivalent to 67 percent of the GDP). This is an alarming situation in view of the debt crisis in Europe and North America. How did the government land in this situation? Below are some of the scandals, unaccounted spending and corrupted practices of BN rule for 55 years that has brought the current national debts.
- Former Work Minister Datuk Seri S. Samy Vellu once said in the Parliament that the government has compensated a total of RM38.5 billion to 20 highway companies. RM1.3 billion have been wasted building the white elephant Customs, Immigration and Quarantine (CIQ) facilities on cancellation of the Malaysia-Singapore scenic bridge. After completing highway construction with taxpayer’s money the toll concessionaires collect toll from 30-60 years.
- Former Deputy Prime Minister Datuk Seri Anwar Ibrahim revealed that the Central Bank has lost RM30 billion in foreign exchange trading in the 1990s. Who was the manipulator behind it? (Second Finance Minister Nor mohamad yacub was in charge of Bank Negara’s Forex trading at that time)
- The Bank Bumiputra twin scandals in the early 1980s saw US$1 billion (RM3.2 billion in 2008 ringgit)
- The Maminco attempt to corner the world tin market in the 1980s is believed to have cost some US$500 million. (RM1.6 billion)
- Perwaja Steel resulted in losses of US$800 million (RM2.56 billion). Eric Chia, was charged with corruption for allegedly steering US$20 million (RM64 million) to a Hong Kong-based company
- Use of RM10 billion public funds in the Valuecap Sdn. Bhd. operation to shore up the stock market.
- Banking scandal of RM700 million losses in Bank Islam
- The sale of M.V. Agusta by Proton for one Euro making a loss of €75.99 million (RM 348 million)
- For the past 10 years since Philharmonic Orchestra was established, this orchestra has swallowed a total of RM500 million
10. The government has spent a total of RM3.2 billion in teaching Maths and Science in English over the past five years. Out of the amount, the government paid a whopping RM2.21 billion for the purchase of information and computer technology (ICT) equipments which it is unable to give a breakdown. The whole project was scrapped
11. The commission paid for purchase of jets and submarines to two private companies Perimeker Sdn Bhd and IMT Defence Sdn Bhd amounted to RM910 million.
12. RM 100 million on renovation of Parliament building and leaks
13. National Astronaut Programme – RM 40 million
14. National Service Training Programme – yearly an estimate of RM 500 million
15. Eye on Malaysia – RM 30 million and another RM5.7 million of free ticket
16. RM 4.63 billion, ’soft-loan’ to PKFZ
17. RM 2.4 million on indelible ink
18. RM32 million timber export kickbacks involving companies connected to Sarawak Chief Minister and his family.
19. Two bailouts of Malaysia Airline System RM7.9 billion
20. Putra transport system, which cost RM4.486 billion
21. STAR-LRT bailout costing RM3.256 billion
22. National Sewerage System costing RM192.54 million
23. Seremban-Port Dickson Highway costing RM142 million
24. Kuching Prison costing RM135 million
25. Kajian Makanan dan Gunaan Orang Islam costing RM8.3 million.
26. Le Tour de Langkawi costing RM 3.5 Million
27. Wholesale distribution of tens of millions of shares in Bursa Malaysia under guise of NEP to cronies, children and relatives of BN leaders and Ministers worth billions of ringgits.
28. APs scandal had been going on year-after-year going back for more than three decades, involving a total mind-boggling sum of tens of billions of ringgits
29. Alienation of tens of thousands of hectares of commercial lands and forestry concessions to children and relatives of BN leaders and Ministers worth tens of billions of ringgits.
30. Travel around Malaysia and see for yourself how many white elephants like majestic arches, roads paved with fanciful bricks, designer lamp posts, clock towers, Municipal Council buildings that looks more like Istanas, extravagant places of worship, refurbishment of residences of VIPs, abandoned or under-utilised government sports complexes and buildings, etc! Combined they could easily amount to the hundreds of billions of ringgits!
31. Wastages and forward trading of Petronas oil in the 1990s based on the low price of oil then. Since the accounts of Petronas are for the eyes of Prime Minister only, we have absolutely no idea of the amount. Whatever amount, you bet it is COLLOSSAL!
There are many more scandals unexposed to the Malaysian general public. The UMNO BN government has not learnt any lessons and continues to spend as though they are born to rule this country. The recent 250 million sharizat NFC scam is another case where money was given just to spend the way sharizat and her family wants. No proper procedure and dateline to repay back?
Despite all these scandals and wastages, Indians in Malaysia are denied even basic rights. Therefore, is this the government that we want to leave behind for our children and grandchildren? Register as voters and act now. it’s now or never.
Senator S. Ramakrishnan
27/3/2012From the desk of Senator S Ramakrishnan comment below, or link to this permanent URL from your own site.