FMT - ‘RM1 trillion’ debt claim confuses people, says Amanah man (extracts):
IPOH: A Perak Amanah delegate today questioned Prime Minister Dr Mahathir Mohamad and Finance Minister Lim Guan Eng over the country’s RM1 trillion debt.
At Amanah’s national convention, Pasir Salak Amanah delegate Muhaimin Sulam asked why the RM1 trillion debt was not stated in the 11th Malaysia Plan mid-term review report, pointing out that the report only stated the country’s debts stood at RM686 billion.
“We don’t know which is which,” he said in debating on the economy.
He added it was said the addition of RM199 billion in government guarantees and RM244 billion in lease payments to the debt would result in the RM1 trillion figure.
Muhaimin reminded delegates of the “magic tricks” politicians used to “conjure up” figures to influence the people.
At Amanah’s national convention, Pasir Salak Amanah delegate Muhaimin Sulam asked why the RM1 trillion debt was not stated in the 11th Malaysia Plan mid-term review report, pointing out that the report only stated the country’s debts stood at RM686 billion.
“We don’t know which is which,” he said in debating on the economy.
He added it was said the addition of RM199 billion in government guarantees and RM244 billion in lease payments to the debt would result in the RM1 trillion figure.
Muhaimin reminded delegates of the “magic tricks” politicians used to “conjure up” figures to influence the people.
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kurang mampu mengira |
In the days following Pakatan Harapan’s formation of the new government, Putrajaya announced that the country’s debts stood at RM1 trillion and this problem needed to be resolved.
Against the backdrop of the RM1 trillion debt claim, the government allocated RM314.5 billion for Budget 2019.
On Budget 2019, Muhaimin said initiatives for the economy had failed to boost investor confidence and had a negative impact on the people.
“The stock market following the tabling of the budget does not reflect investors’ confidence in the Pakatan Harapan government’s policies.”
Against the backdrop of the RM1 trillion debt claim, the government allocated RM314.5 billion for Budget 2019.
On Budget 2019, Muhaimin said initiatives for the economy had failed to boost investor confidence and had a negative impact on the people.
“The stock market following the tabling of the budget does not reflect investors’ confidence in the Pakatan Harapan government’s policies.”
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Moody's Investor Service's estimate that Malaysia's debt-to-GDP ratio stood at 50.8 percent proves that the Pakatan Harapan administration had misled the public. The top international credit rating agency, Moody's, have independently assessed the Harapan government's claims of RM1 trillion debt and a self-declared debt-to-GDP ratio of 80.3 percent. Moody's have found those claims to be untrue, and have maintained our debt ratio to be the 50.8 percent declared by the BN government previously. "You can mislead the people but you cannot mislead the experts" |
Also see my posts:
(2) Moody chopped off Mahathir's financial knees.
According to the declassified Auditor General's report ( the one Najib steadfastly keep under OSA if not for the regime change of May 9),
ReplyDeletea total of RM42.26 billion is required to repay 1MDB's principal and interest that will be due between November 2015 and May 2039.
All repayable in Hard Cash by the Malaysian Government.
It was not included in the Najib published Malaysian Government debts. Classified as "Contingent Liabilities". Accounting sleight of hand.
There is nothing Contingent about the 1MDB debts. It is a Real, Repayable Debt.
All these below went down the drain with the mob lynching government of 905.
Delete[ 1MDB ventures include the City of Malaysia project, which entails the development of affordable housing, particularly for young executives.
The integrated project involves the redevelopment of the Sungai Besi Airport as an icon for sustainable living in the capital, he added.
1MDB also focused on the energy sector by acquiring energy assets from Tanjong Energy Holdings, Genting Sanyen and Jimah Energy Ventures Sdn Bhd to fulfil the government’s aspirations in ensuring long-term sustainable energy security.
“The 1MDB-Mitsui consortium also won the Energy Commission’s 3B power plant project involving the construction and operation of a 2,000 megawatt coal-fired plant adjacent to the Jimah power plant in Negri Sembilan,” he said.
Hence, 1MDB has become the second-biggest independent power producer in the country in terms of energy production capacity.
1MDB was also tasked with the development of the Tun Razak Exchange to turn Kuala Lumpur into an international financial hub, in line with the government’s aspiration to make the capital a global city.
1MDB Real Estate Sdn Bhd...]
Dengan izin bloghost..
ReplyDeleteRe:Tuesday December 11, 2018's posting on 'Silence of Lamb (- paa-ness) by DAP in face of Mahathirism Redux' ; in regard to my comment at 6:35am 'Accepted hands down' (December 12, 2018), in view of the write-up below, I am now doing a u-turn.
http://anotherbrickinwall.blogspot.com/2018/12/tabung-haji-empress-dowager-or-special.html?m=1
In the Epilogue in Billion Dollar Whale, Page 371, it's written:-
ReplyDelete"The money he (Jho Low) took, by and large, was not stolen directly from Malaysia's treasury or through padded government contracts. Instead it was cash that 1MDB borrowed on international financial markets with the help of Goldman Sachs."
If this is true, The Malaysian government, which owns 1MDB 100%, is in principle, responsible to settle that RM42.26 billion debt, but at the same time, it means those funds are still in the Malaysian government's hands.
Also, now that former Goldman Sachs banker Roger Ng has been arrested on allegations related to 1MDB and the US DoJ has charged his former colleague Tim Leissner and Jho Low over alleged wrongdoing related to 1MDB, doesn't Malaysia have ground to not repay the debt or at least a substantial part if that debt owed to Goldman Sachs?
https://www.thestar.com.my/news/nation/2018/11/02/roger-ng-arrested-leissner-pleads-guilty-fugitive-financier-jho-low-charged-with-misappropriation-of/
The thought had crossed my mind last evening, that if Malaysia's 1MDB debt is only worth RM42.26 billion or a mere 4.226% of that RM1 trillion debt claimed by Finance Minister Lim Guan Eng, then to whom is the remainder of the RM1 trillion debt (or RM686 billion) owed to and how did it come about?
So even if all of that RM42.26 billion debt owed can be recovered, nullified or written off, Malaysia is still left with RM957.74 billion of debt to settle (assuming Guan Eng is right about the RM 1 trillion debt).
Wakakakakaka……
DeleteSuch a dubious socialist simpleton!
It answer lies in the intricacies within this age old accounting story:
https://en.m.wikipedia.org/wiki/Missing_dollar_riddle
Sad……… indeed!
Some people r meant to be fooled all their life!
The Bloomberg article explains clearly why it is RM 1 trillion
Deletehttps://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2018-05-24/malaysia-s-1-trillion-ringgit-government-debt-explained
The money stolen from 1MDB international market borrowings went into the Thieves pockets.
So the Malaysian Government took on a debt , for which it never saw any of the original funds.
Imagine someone fraudulently took a car loan in your name, and you have never seen the car.
Now you are responsible to repay the car loan from your savings. Of course your money , hard earned savings are still in your hands, but it had nothing to do with the car loans.
Ck.....cheebye motherfucker kaytee has never been a true socialist. Cheebye kaytee is just a najib dick sucker.
DeleteNothing wrong being a socialist so long that their brains are in right mode.
I did NOT fCk your mum so please stop accusing me of being your motherfucker - sorry, I can't be your father
DeleteThis is a stupid debate. Kalau kena bayar balik itu hutang lah. Apa yang tak di-faham? It is Moody's and the like that are confusing us with their leaf-blower accounting mumbo jumbo. Left pocket or right pocket it is still hutang yang kena dibayar balik.
ReplyDeleteIf I have a housing loan with a the monthly repayment of RM1,000 and at the same time I foolishly rent another house also at RM1,000 a month, what is my debt?
Moody's will say my debt is only with the bank - RM1,000. The rent is monthly expense.
The common man will answer "I am out of pocket RM2,000 a month therefore my debt is RM2,000". This is Guanee's answer too.
Amanah asked why the RM1 trillion debt was not stated in the 11th Malaysia Plan mid-term review report, pointing out that the report only stated the country’s debts stood at RM686 billion, the figure many had said before
DeleteCreative accounting report follow 'international' norms of debt labelling.
DeleteAnd relabelling debts forward to be a future liability that DON'T reflected in the balance sheet DOESN'T make the 'money owned (a much better description) disappeared!
Indeed, fools r born everyday bcoz the udangs know how to spin!
I found a breakdown on Malaysia's national debt according to the Ministry of Kinace on Edge Markets here:-
ReplyDeletehttp://www.theedgemarkets.com/article/mof-breaks-down-rm1-tril-govt-debt
And EDGE Markets of 18 January 2018, gives us a breakdown of government guaranteed loans here:-
http://www.theedgemarkets.com/article/cover-story-look-entities-governmentguaranteed-loans
I've just posted a blog post here:-
MALAYSIA'S 1,049 BILLION RINGGIT WHALE?
http://politischeiss.blogspot.com/2018/12/malaysias-1049-billion-ringgit-whale.html
Take a look at this breakdown of government debt and liabilities in the infographic by EDGE Markets
ReplyDeletehttp://www.theedgemarkets.com/article/mof-breaks-down-rm1-tril-govt-debt
The RM686.6 billion is federal government debt.
Guan Eng added up the 686 billion federal government debt, the value of government guarantees and commitment to lease payments to get RM1 trillion total debt and liabilities.
The RM38 billion debt 1MDB accrued is included in the RM199.1 in government guarantees.
This is why there is confusion over RM1 trillion and RM686 billion.
Minus the government guarantees and commitment to lease payments, Malaysia's debt amount to RM686.6 billion.
I attended a financial talk where Lim Guan Eng was directly asked about the discrepancy between the Government's RM 1 Trillion debt and the Moody's assessment of RM 686 Billion.
DeleteOn the May 22, the first day he clocked in as Finance Minister, he was asked to sign off authorisation to pay RM 143.75 Million in Interest (not reducing the Principal by a single sen, mind you) for 1MDB so-called "Non-Debts".
His question to his Treasury senior officers - since the World Bank says Malaysia has no such debts, and Moody's says Malaysia has No such debts, what happens if I refuse to pay this "Non-Debt".
The answer was stark - if we don't pay on the due date (May 30) , Malaysia will be in default, Malaysia's sovereign rating will probably be downgraded, and the Ringgit would be in Free-Fall the next morning.
In fact , Moody's , one of the organisations which says there is no such debt, would likely be one of the first to downgrade Malaysia's sovereign rating, for Non-Payment of the NON-DEBT.
So stop playing around with words and numbers.
If you have to pay back, you have to pay back, and it is a "Hutang" Debt.
The private-finance iniatives , another RM 42.2 Billion, is another Bullshit playing around with numbers.
The Malaysian Government is legally locked into paying the RM 42.2 Billion plus interest, come what may, to the developer for the projects. It is being declared on the Malaysian Government books as yearly Rental Expense.
A real Rental expense you can stop by giving up your tenancy, or rent somewhere else as your needs change, or renting a cheaper property.
A legally locked in, unconditional payment is a Debt by any other name, not a Rental expense.
the hradworking Maddy dedak makan-er, wakakaka
DeleteCha Bor Najib licker has not been able to answer my facts.
DeleteWhen been caught red handed, pigeonholing the opponent with labels IS the only way out!
DeleteWho's learning from whom er?
The 三毛 or the kangaroo shit licker?
Just got back after being cooped up miles and miles in the air and having hived off massive jet lag...and WHOA...what do I see.... despicable Ah Moc still at it ! Useless dedak man could only whipped out his standard non-answer retort...so lame la...your dedak boss tak marah ke ? hehe
Delete...."A legally locked in, unconditional payment is a Debt by any other name "...
No one could put it any better than Financetwitter :
Between 2000 and 2007, Moody’s doled out AAA ratings to 30 mortgage-backed securities every day. When the 2008 subprime crisis finally hit the United States, 83% of those first class securities became junk – they were downgraded. The funny part was – Lehman Brothers’ own debt still had an investment grade rating when it filed for bankruptcy protection.
But Moody’s Investors Service wasn’t alone in scamming investors. Together with Standard & Poor’s and Fitch Ratings, the big three credit-rating agencies were all guilty for not only failing to warn investors of the dangers of investing in many of the mortgage-backed securities at the epicentre of the financial meltdown, but benefiting by not pointing out deficiencies.
In fact, S&P (Standard & Poor’s) was sued by the U.S. Department of Justice over its despicable role. Those credit-rating agencies were working hand-in-glove with investment banks in the marketing of risky mortgage-backed securities, also known as collateralized debt obligations, which helped bring the U.S. financial system to its knees 10 years ago.
Everything was rigged. Thanks to major lawsuits by the San Diego-based law firm Robbins Geller Rudman & Dowd, documents revealed that the U.S.’ two top ratings companies – Moody’s and S&P – have for many years been shameless tools for the banks, willing to give just about anything a high rating in exchange for cash.
An exposed email written by one Standard & Poor’s executive says – “Lord help our fucking scam … this has to be the stupidest place I have worked at.” Another high-ranking S&P analyst confessed – “As you know, I had difficulties explaining ‘HOW’ we got to those numbers since there is no science behind it. Let’s hope we are all wealthy and retired by the time this house of cards falters.”
Did anyone read the mid-term report or are we just taking this guy’s word for it?
ReplyDeleteThe near 1 trillion hutang is there in the report, a huge chunk is buried under “operational expense”, like “rent” in the example I gave above. At the end of the day “rent” is still a debt.