From Malaysiakini:
Guan Eng's selective use of statistics
OPINION | P GUNASEGARAM
Published: | Modified: 
QUESTION TIME | Is it right for Lim Guan Eng (photo, above) to take credit for the new government for the sharp increase in foreign direct investments and the reduction in prices of goods? Is it true the government is turning around confidence in the economy and is capping prices through the elimination of the goods and services tax?
In effect, the sharp rise in FDI actually masked a sharp drop in domestic investments, which Lim failed to address and explain satisfactorily in his statement.
It also shows the government’s tendency to highlight positives and hide the negatives not good for a government that espouses transparency, accountability and integrity. Further, there is a claim to inflation control, which is not warranted.
[ for more, read the MKINI article at https://www.malaysiakini.com/columns/480325]
He also provided a table (Table 3). However, almost all the items in the table were previously exempt from GST and therefore the removal of that tax would have had no impact whatsoever on the prices. What was it the government did to reduce prices here?
It’s fine for the government to claim credit when it genuinely deserves it, but it should not opportunistically claim credit when other factors, besides its performance, improve the fickle economy. To do so brings disrepute to the government and erodes trust.
Lim must remember that and play less the game of political upmanship against the previous government. Ultimately, you can’t lie about the economy
Gunasegaram's persistent attacks on Lim Guan Eng's numbers just got a slap in the face from revelations made in the High Court during Najib's trial.
ReplyDeletehttps://www.thestar.com.my/news/nation/2019/06/19/src-trial-witness-says-govt-still-servicing-rm4bil-kwap-loan/
The "contingent liabilities" of Government guaranteed loans made by other entities had been included by Lim Guan Eng as part of Malaysia's debts. Gunasegaram and others had condemned Lim , because IMF and World Bank accountants exclude "contingent liabilities" from government debt.
It turns out the Malaysian government is repaying SRCs government-guaranteed "contingent liabilities" in hard cash. Its REAL DEBT ya....
Kalau kena bayar balik itu hutang-lah, even a 30-year provisional accountant like Guanee can understand.
DeleteNow today Latheefa has initiated civil forfeiture procedures against 41 individuals and groups that received 1MDB money. I am sure the masses of people who called for her resignation just last week will immediately jump in and demand this civil suit be dropped because "due process" was not followed in her appointment as MACC Chief. Come on, speak up and submit memo to the Agong to sack her. MCA can be the first to shout. They are on the list of 41.
When Guanee was appointed Finance Minister in May 2018 he was totally brutal and truthful in his use of numbers and statistics. He called a spade a spade. He exposed the many "Red Files" in the MOF which were deliberately "hidden" from the rakyat.....the unrefunded GST tax collected, the pre-paid Gas pipeline projects, the pre-payment of ECRL, HSR, the empty Consolidated Account at MOF, the 1 TRILLION debt etcetc.
ReplyDeleteHow did the "expert" economists react? They said:
"Hey Guanee, you are now the government, don't behave like you are still in opposition, you are now the Finance Minister, everything you say will be carefully analysed and will affect the market and the economy, you must say things that will bring confidence, don't keep harping on the negatives, focus on the positives. In other words be selective with data and statistics.
Guna was one such "expert". Here he criticises Guanee about "scaring" the markets about the 1 Trillion debt:
https://www.malaysiakini.com/columns/427269
Well today Guanee is focussing on the positives, emphasising the statistics that foster economic confidence attract foreign investors.
He is doing exactly what "experts" like Guna suggested he do. And how does Guna react? He hantam Guanee again.
Guna Leaves No Turn Unstoned. Apa lagi Guna mahu?
tis fella never grow up, sampai kiamat pun macam budak.
ReplyDeleteThe proof of the pudding is in the eating!
ReplyDeletePROVERB
The real value of something can be judged only from practical experience or results and not from appearance or theory.
So, what's the results of this fart's proven business acumen in managing those newspaper businesses under his care?
Totally dismayed!
Talk is so easy WHEN one is trying hard to find frauds, especially with accounting acrobatics.
Last year when Guanee was being brutally honest after GE14 Guna said he should be more careful when making public announcements as the Finance Minister, don't keep highlighting how bad the economy was (due to BN mismanagement). It will scare away foreign investors.
ReplyDeleteFast forward to 2019 when Guanee try to be positive to attract investment Guna himself says the Malaysian economy is "fickle" (Guna's own word) and Guanee must admit this; to say otherwise would attract "disrepute and erode trust" (again Guna's own words) in the government.
Guna himself is now scaring away investors.
Guna is a lalang. He must be paid well for writing his opinions.
Would a foreign investor, rating agency or hedge fund or pension fund or investment funds or even the local investors in business, trade, finance prefer to listen and digest whatever the Malaysian Finance Minister said or the staistics dished out to determine the actual financial indebtness and viability of a country's financial standing before investing or making any business decision or to Guna and his economic ilks on non-compliance about how debt should be measured?
ReplyDeleteWouldn't they be more alarmed and panicky if the debts announced after the change of Govt in GE 14 as following compliance is about the same, or worst announced as even less instead of more, when everyone in the world knew that Ahjibkor (confirmed Kleptocrat by most of the world financial, business and judicial bodies) as the previous Finance Minister has created lots of forward liabilities which will turn into debts (as proven now for some of the Govt. guarantees provided).
Do we expect people in finance, investing, business to be fools to wait and sit still until the Finance Minister determine whether the actual liabilities incurred will be turned into confirmed debts (based on whatever compliance of how to determine debts) before making decisions to invest, pull out or stay put? How long will it take? 1 year, 3 years, 5 years, 10 years or maybe still hidden as unconfirmed debts?
At least, with an estimated maximum of 1 trillion RM potential debts as a worst case scenario now, most can know what decisions to make and make judgements on how stable or weak the actual financial situation of Malaysia is.
It's akin to a heavily indebted person making promises, getting new loans/investment, expanding business etc but hiding information of some real heavy debts coming his way from being revealed because it is not Due Date and not classified as bad debts yet.
Guna and his ilks must remember, it is not your money which is put at stake and at risk to either believe a worst case scenario of a country's debts and financial health or to believe what is the actual debt compliance rules which makes the debt looks lower.
Don't make everyone laugh and be seen as fools by even saying the country's debt was well managed by the previous Kleptocratic Finance Minister who was adhering to compliance rules of debts.
Who says Guanee is disappointing?
ReplyDeleteSyabas MOF, Syabas Guanee, good offer, towards fulfilling Manifesto to reduce tolls...
QUOTE
Govt offers RM6.2bil to buy Litrak and three other highway concessionaires
Friday, 21 Jun 2019
by izwan
KUALA LUMPUR: The government has made a huge offer to take over Lingkaran Trans Kota Holdings.
The government, in February this year, has announced its intention to acquire the four highways, as part of its election promise.
Litrak, in filing with Bursa Malaysia today, said the company has received a RM2.47bil take over offer from the government.
The offer values the stock at RM5.20 a share, a huge premium over its last traded price.
In the filing, Litrak also said the government has offered to buy its 50% owned associate company Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint) for RM1.984bil.
The take over offers for Litrak and Sprint will be undertaken by a special purpose company wholly owned by Minister of Finance Inc (MOF Inc).
"The offers to Litrak and Sprint remain valid until 5pm on July 12, after which the offers shall forthwith lapse and cease to have any force or effect unless MOF Inc agrees in writing to extend the period during which the offers shall continue to be valid,' it said.
Meanwhile, MOF Inc is simultaneously making similar offers to acquire all the securities of Kesas Sdn Bhd and Syarikat Mengurus Air Banjir Dan Terowong Sdn Bhd (SMART)
The offers to acquire Litrak, Sprint, Kesas and SMART are interconditional upon each other unless waived by MOF Inc or SPV in writing," it said.
Separately, Gamuda also said that its highway concession companies have also received take over offers from the government.
Gamuda owns a 44% stake in Litrak, a 52% stake in Sprint, a 70% stake in Kesas and a 50% stake in SMART.
The government's offer values Kesas at RM1.377bil, while SMART is worth RM369m.
UNQUOTE