In an interview with Voice of America, Dr Mahathir said he might have ways to wipe at least US$50 billion (RM 199 billion) of the total debt and liabilities.
I wonder whether he has included the money lost during his previous regime (1981 to 2003)?
His current matey who used to rail, rant and rave about those losses has become mute recently, other than an attempt to call for a re-election in Perlis Indera Kayangan where BN holds 10 of the state 15 seats. Yeah, wouldn't he!
Would Lim KS have ever called for a re-election in a state where PH wins 2/3 of the state seats?
That occasion occurred after 2013 when PR won 44 out of 56 Selangor state seats, and HRH refused to appoint PR's nominated ADUN as the MB.
Why was Lim KS then dumb like he had several sticks of satay in his usually BIG sh*t-stirring mouth?
Lim Kit Siang is just backbencher MP for Iskandar Puteri ....wakakaka..
ReplyDeleteNo official position in the Government of Malaysia, not even any executive position in DAP.
What do you want him to do? Wakaakaka....
Wakakakakaka…
DeleteAll he wants IS to vent his pet hate on lks. Just like his fault finding to demonize the new govt.
Besides jibby's past helps for his uncle, there must be something else!
Perhaps hippo has a part in kt's current cozy manifestation in Oz.
Wakakakakaka…
you could be a novelist except for your poor English, wakakaka - ooops, a Chinese language novelist then, wakakaka again
DeleteI thought he is LKS speech writer?
DeleteTypical anmokauxai!
DeleteWakakakakaka……… write something sensible lah if yr England is so queenly.
When did pigeonholing writings becomes yr side income? Since ge14?
CK = Hew Kuan Yau, wakakaka
DeleteReally sour grapes from Ktemoc.
ReplyDeleteMahathir is still going on about the RM1 Trillion government debts when his Finance Minister just concurred with Najib that its only at RM687 Billion?
ReplyDeleteDid someone forgotten to send him the memo? Or did his mudah lupaness kicked in again, like how he mudah lupa'ed the humongous losses incurred during his long reign? If converted into today's value, it could worth in the Trillions of RM! Najib's losses are cikus compared to this!
Naji-nomics:
ReplyDelete“....although MOF Inc took over 1MDB assets, the debt or liabilities of 1MDB remained in the company"
Wow. I thought when you take over a company you take over all assets AND DEBTS. But Naji-nomics says that MoF took over all assets but did not put the debt under MoF, therefore understating the national debt by about 38 billion. No wonder the market is spooked. They are wondering what other Naji-nomics surprises will be uncovered.
1MDB debts were transferred to MOF Inc under adviced by PAC, the same committee that Tony Pua was in. At the same time these assets were monetised to repay back the loans. The markets wasn't spooked by Najib-nomics but it was spooked by your Finance Minister's miscalculated Excel-nomics.
DeleteI am very Old School in my Financial management.
DeleteIn my company, people who try to do Creative Accounting get sacked.
A Liability is a Liability is a Liability. You do your very best to solve a Liability problem, but you Never , Never hide it.
What Najib Gasak did may have been borderline legal / illegal - that is for the Court to decide...akan dating. But in my book it is Creative ACCOUNTING. .
What else in Malaysia's key Financial numbers was Cooked ?
Goreng Pisang ?
THAT is why the market is spooked.
Your old school is circa 18th century. Ever since shares and stock market was invented back in the 19th, economics have been growing more & more complex. Nowadays, a debt may not be a debt and a profit may not be a profit. That's why there's World Bank standards set to standardise the definition of profits, losses, debts, and etc. All countries must report it the same way and hence that's the problem with LGE. He didn't learn about this before opening his big mouth and now having to tuck his tails back. Case in point, the USA has the world's largest debts and it'll take generations to pay it off in reality, but do the economist, banks, investors, companies, businesses, their rakyat worry about?
DeleteBig NO. It's all about managing the debts at different times, and how do you know if they're doing it right? Through the ratings companies (Moodys, S&P, Fitch, etc) and World Bank reports.
The market was spooked because they realised the new Finance Minister has no idea what he's talking about and took to bail before their investment goes under. Simple as that.
Exactly the kind of Creative Accounting Bullshit which allowed Najib Gasak to pretend the 1MDB problem is "solved" , except it is not.
DeleteThe liabilities are payable in Billions of Cold Hard US Dollars, but don't get reported as Liabilities.
The "UNITS" that 1MDB showed as assets are WORTHLESS. Not capable of being cashed for a single Sen.
You are most welcome to volunteer to accept your next Salary to be paid in 1MDB "units".
Monopoly money worth more than that.
International Accounting rules allow you to differentiate between short-term liabilities and long-term liabilities, and report them as such.
DeleteLong-term liabilities are still real , but are unlikely to cause any crisis.
But it is not permissible to Not report it at all.
You may think its "Creative Accounting", but this is the accounting format used worldwide by all countries and companies that gets audited.
DeleteYou seem to have a misunderstanding of what liabilities are to a country. 1MDB is not considered a liability because it is in bonds backed by assets valued over its total debts. Since you mentioned long term liabilities are unlikely to cause any crisis, are you aware that majority of the debts are in bonds that have medium-long term maturity dates? The last bond will only mature in 2039.
The classical term, "using money to make money", hold true. But since governments can't just literally make money, they (not just Malaysia) use debt (bonds) as leverage to make that money.
Najib is best advised not to relate day-to-day equity market gyrations to the actions of the new government. Longer term the KLCI will improve, as it always will, so will Najib then give credit to the new government?
ReplyDeleteHow does he know the market fell because of LGE revealing that the national debt exceeds 1 trillion? It could have been due to the revelation that the amount of money found in properties linked to Najib was valued at 114 million, plus other valuables yet to be valued. The market pulled back because of fear that more dark secrets await to be uncovered.
Maha-nomics vs Naji-nomics.
ReplyDeleteTo raise 200 billion is not easy. The only way I can think of is publicly list Petronas, sell say a 25% portion. Do an Aramco. That's where TS Hassan comes in. But we know Maha-nomics is Malaysia centric. We must not sell to foreigners. So sell to PNB, KWSP, KWAP.
Maha-nomics is cronycentric. What you're suggesting the same kinda crappy musical chairs of back and forth private-GLC ownership game that was played with MAS, MISC, Boustead, Proton, Perwaja, and every time the rakyat loses in this game while Maha-nomic cronies became instant billionaires.
DeleteMarket Cap of PetChem = 66B, PetGas = 35B, PetDag = 25B. But Mothership would be worth a lot lot more. Once listed Petronas would be publicly traded, but importantly still owned by local institutions and ordinary folk. Now what would that do to the 20% royalty promise to the states? Bring it to the AGM for vote, or just give them some shares lah ! TS Hassan has his job cut out.
ReplyDeleteWe should ask what cheebye fuck kaytee solution is?
ReplyDeleteAsk LGE go back to Accounting School and pass his Excel Calculation module before taking up the post of Finance Minister. A bit more sense with numbers will do him good.
DeleteGovt. assets sale to raise the money and reduce liabilities/debts is never a big problem. It's a matter of having the political will to squash off politically driven rancid critics when such assets sales are conducted.
ReplyDeleteWith BN and their NGOs and thugs all in hiding from fear of persecution the way is clear to sell off whatever Govt. assets he so desired.
My question is why only RM 200 billion? Make it RM 500 - 700 billion to start off ruling with an easier financial cash flow position and being able to speed up the election promises in their manifestos.
Make those who prefer to live under Najibnomics or seeking afterlife all the time Green with envy.
Politicians may have patience but never the ordinary young voters and poor folks who wants to see fast results.
If follow your way, the next government taking over will find that there's no longer a country to rule over, since the current administration would have sold off everything to foreign powers.
DeleteThat's called Forced Sale or Garage Sale if BN had continued with it's Najibnomics for another 5 years.
DeletePH should do a Jumble Sale of Govt. assets to ease it's cash flow. Malaysia can afford it.
You mean cronies can afford it.
Deletehttps://en.m.wikipedia.org/wiki/Creative_accounting?wprov=sfla1
ReplyDelete"Creative accounting is a euphemism referring to accounting practices that may follow the letter of the rules of standard accounting practices, but deviate from the spirit of those rules. They are characterized by excessive complication and the use of novel ways of characterizing income, assets, or liabilities and the intent to influence readers towards the interpretations desired by the authors. The terms "innovative" or "aggressive" are also sometimes used. Other synonyms include Cooking the books"
Very accurate description of Najib Gasak.
Najib says 'surprised' how Pakatan 'restored' economy in just over two weeks
DeleteKUALA LUMPUR, May 26 — Datuk Seri Najib Razak took a jibe at the Pakatan Harapan government today, zooming in on Finance Minister Lim Guan Eng’s comments on Malaysia’s strong economic fundamentals.
“I am surprised at how fast the country’s economy changed from a supposed crisis and failure before GE14 to a stable and strong economy.
“All in just over two weeks?” the former prime minister said in a tweet.
Finance Minister Lim had said yesterday that Malaysia’s economic fundamentals were still intact, and that the new government would strive to make the country’s fiscal position more sustainable.
“In the finance sector, for example, it is still strong and banks are stable because of (having) high capitalisation and with low non-performing loans...and liquidity in the funds or capital market are high,” he said.
And that's why I said, LGE has no idea of what he is talking about.
DeleteSource IMF
DeleteGross Government Debt as % of GDP
USA : USD21,171 Billion - 107.8%
Japan: USD3,587 Billion - 236.4%
Malaysia: RM1.0 Trillion (USD250.0 Billion). Malaysia is in financial disaster/ruin. A bankrupt country with strong fundamentals. ~ Source PH
What's the problem? The PH's Manifesto - it has to nought the GST because PH believes it increases the price of baby pampers, kerang, ikan kembong, etc..
Now, how will PH find the money to service/pay Najib's debt?
From SST (10%)? From black gold? Stop all mega infrastructure projects? Termination of all political appointees contract? Downsizing the cabinet and also the civil service. Ministers salary cut? Reduce BR1M? Work on pro bono basis, for example, like the Oxford-trained financial adviser to the FM?
Are we not going to be a developed country?
Was the previous government that very bad? Just mainly because of 1MDB and GST. Fitnah.
One of Najib's own party leaders said he lives in an insulated bubble, and it's clear he still does not grasp the whole current situation.
DeleteI would advice Najib tonfocus on preparing on his upcoming Mother Of Legal battles.
Why r u still want to argue with a know nothing, who is interested ONLY to win the last mile with all the kitchen sinks thrown in.
DeleteLet him mumbles lah.
He doesn't know people out there r laughing their heads off of his irrationality & mostly cut&paste replies devoid of the actual text's context.
Let him be the show of the monkey!
Exactly CK !...sai hei to even waste effort to respond to mud brain. I just didn't even bother now. If time permits and if in the mood, the most I would do is to glance through his mumbles and have a quiet chuckle at his antics...but notice how he always WANT to have the last word EVERY TIME, wakakkaka. Wonder if the mud brain indoctrinated with dead end religion makes one feel soooo inferior to insists on the last word all the time, wakakkaka.
Deletehttps://m.malaysiakini.com/news/427019
ReplyDeleteAmazing creative accounting by the Najib Gasak administration.
The HSR will cost RM 100 Billion , and cancelling it will cost a huge undisclosed amount.
By any prudent accounting standard , HSR IS a legal Financial liability of the Malaysian government. But it was not reported as such by the Malaysian government.
Najib is jealous it took Harapan only 2 weeks. Remember the infamous PEMANDU (under Idris Jala) who spooked Malaysians a while ago that the country would become bankrupt in 2019 then suddenly become a developed nation in 2020.
ReplyDeleteI personally know 2 people who have been declared bankrupt because they stood guarantors for others. Besides 1MDB, how many more companies have our government stood as guarantors?
ReplyDeleteGuarantors for what? If its guarantors for asset loans then either you're lying or the 2 person you referred to was lying. As long the asset can be sold, you're probably gonna get a profit from it.
Delete