Having a debt-to-GDP (gross domestic product) ratio that is lower than other countries is not an assurance that Malaysia’s debt situation is in a healthy condition, an economist said.
Jarren Tam, a senior policy analyst at the Centre for Public Policy Studies (CPPI), said Prime Minister Najib Razak’s comparison of the country’s debt-to-GDP ratio with Japan’s higher ratio, for example, to prove that Malaysia’s economy was healthy, was misleading.
In Japan, while GDP has contracted, the country has had a high debt-to-GDP ratio for more than a decade without creditors losing faith in its ability to repay debts, said Tam.
“So the amount of debt which is considered ‘too much’ is country specific and must be assessed based on a country’s fiscal situation,” Tam told The Malaysian Insight.
Najib is not aware Selangor provides affordable housing, under Rumah Selangorku, for houses starting from RM42,000 up to RM250,000.
70% of houses sold under Rumah Selangorku cost less than RM200,000, “far cheaper” than houses under Najib’s premium PR1MA which cost between RM100,000 to RM400,000.
As Minister of Finance, has Najib forgotten how he has presided over a massive nationwide housing price bubble, to which he has responded by squeezing access to loans for low-income families, making them more in need of programs such as Rumah Selangorku and our Smart Selangor First Home Buyers Scheme that covers deposits?
Can you explain again, please. So that the low income and the rural voters would understand such things as Home Buyers Scheme that covers deposits.
In BM, better.
The recent public forum on the subject of ‘GST & PERIUK NASI KITAK’ ( gst & your rice bowl) held in Kuching received an encouraging response from the student community, members of the public and friends from NGO circles. About 80 persons turned up last Saturday night at a local hotel to listen to the two(2) invited panelists Dr Muhammed Abdul Khalid and Encik Azrul Azwar Ahmad Tajuddin who are both economists by training.
The forum was organised by Rise of Sarawak Efforts (R.O.S.E) in partnership with another NGO known as Lawyer Kamek For Change and has the support of other local NGOs. It’s aim was to raise awareness on the subject of GST and rising costs of living and other issues affecting young people.
The audience listened attentively to the members of the panel as they answered and discussed on a series of questions put to them by the Moderator for the forum, Geoffrey Tang , a member of ROSE.
On the question of GST and whether Malaysia was prepared for the implementation of this consumption tax and whether GST is the cause of the increase in prices of goods and services, both panelists agreed that it was indeed a major contributor to rising prices. The fall in the value of the ringgit as well as the withdrawal of government subsidies which happened at around the same time further contributed to the burden of rising prices. There is no chance for the people to make adjustments for this. Dr Muhammed also took the audience through the history of GST before implementation and is of the view that GST contributes to the regressive tax system in Malaysia. It is the poor who gets taxed the most and not the rich. This was because the poor spends a much greater percentage of their pay or income on goods and services, than the rich. Both panelists surmised that Malaysia needs a more progressive tax system.
On the disconnect between what the people experience on the ground ie. Rising prices of food, housing and transport and what is proclaimed by government that our country’s GDP is doing very well (5.9% for Q4 of 2017) and that our economy is doing very well the panelists unpacked this by delving into what GDP means. It is not reflective of the wealth and quality of life/quality of jobs that the people have nor the sustainability of the economy. A very simple proof is this; even though GDP of Sarawak is the same as that of Selangor’s the average household income of Sarawakians is half that of Selangorians. “Don’t be obsessed with GDP figures” advised Dr Muhammed. “Instead we should ask these questions and find solutions to them, ‘Why is 1 in 4 of Sarawakian children stunted? Why are many of our youths and young graduates unemployed with unemployment rates as high as 10.5%? Half of our graduates earn less than RM2000 per month and this has been so for the last 10 years”.
“Of what use is high GDP or a booming economy if it does not benefit the ‘rakyat’?” asked Azrul Azwar. Currently, we are experiencing stagnant wages; increase in wages cannot catch up with rising costs of living and inflation. Not enough high-income jobs are being created for our graduates and there is even a drop in the number of available jobs. Annually, 60,000-80,000 new graduates cannot get jobs.
“To solve any problem we first need to acknowlege the problem. And if those in charge or policy-makers refuse to do so you have a problem. “ referring to the words of a minister who said that those graduates who had to sell nasi lemak or become Grab or Uber drivers to earn a living as noble. The rakyat needs to demand that our leaders are people who have the expertise and who have good values and attitudes and who care.’
Yes, noble, but has Najib been noble, too?
Not carrying out economic policies that provide jobs for graduates.
He hasn’t the ability to do so and should be replaced at GE14.
The PM owes all Malaysians many more answers to redeem our honour: (1) Murderers of Altantuya (2) Production of porn like movie in Hollywood (3) Stepson paying US court to redeem himself (4) FELDA (5) CID Director banking in RM 1 million (6) All those media pictures of him and spouse seen with Jho Low.
I agree with the above.
A bloody good one –
MP offers to crowdfund legal cost for top cop’s frozen money
But he must declare his assets publicly as proof he can’t afford legal action, says DAP rep.
Jho Low and 1MDB investigated in 8 countries, BUT the 3 million melayu in Umno will defend & protect Jho Low till their last drop of blood just by screaming FAKE NEWS!!!💩💩💩
Fake news mostly appear every night 8-9pm on TV3.
the 3 million melayu in Umno –
those are fake ones.
Two Wall Street Journal journalists will release their book on Jho Low and 1MDB in September with the title “Billion Dollar Whale: The Man Who Fooled Wall Street, Hollywood, and the World”.
According to the publisher’s note on Amazon.com, the book promises an “epic true-tale of hubris and greed”.
“(The book) reveals how a young social climber pulled off one of the biggest financial heists in history – right under the nose of the global financial industry – exposing the shocking secret nexus of elite wealth, banking, Hollywood, and politics.
in bolehland’s parliment speaker has absolute and undisputed right to silence parlimentarians
The rot in 1Malaysia Development Bhd was not started by Najib Razak, but the prime minister used it to his advantage, said anti-graft activist Cynthia Gabriel.
The Centre to Combat Corruption and Cronyism (C4) executive director said Najib “made it personal” when he allegedly used 1MDB funds to benefit his family.
“It’s personal because he got RM2.6 billion transferred into his personal bank accounts. It’s personal because his wife went on the Equanimity yacht to negotiate with Jho Low about matters related to her pink diamonds.
“We need to put a stop to the rot in the entire system. He (Najib) didn’t start the rot. It was started by his predecessors.
Of course, the money seized by Australian authorities is clean. The IGP said so. We all believe him, don’t we?
After all, Wan Ahmad was thoroughly investigated by his own colleagues in the police force. When you analyse the explanations given, it is an unconvincing fairy tale being spun. Amounts below the A$10,000 threshold (for law enforcement agencies to notice) were made by different people in dozens of small towns and cities in Australia. These deposits appear to be highly suspicious.
Wan Ahmad must have so much money that he is prepared to forfeit A$320,000 (approximately RM970,000). How many civil servants are in a financial position to do this?
All he needs to do is present himself to the Australian Federal Police with documents to prove the source of his money.
And why others have to do the depositing into his bank accounts from all over the place in Australia
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