Malaysia Today - Your Source of Independent News
Malaysia Today - Your Source of Independent News |
- When does Malaysia’s debt become a problem? Just the facts please!
- Hindu Malaysia Agenda -Rally
- Was there a hidden peace deal between Philippines government and Malaysia?
- GE13 Hotspot: Johor (aka How One Chinaman Will Lose Johor for UMNO)
| When does Malaysia’s debt become a problem? Just the facts please! Posted: 03 Mar 2013 12:05 PM PST Anas Zubedy Since March 2008, Malaysians find it harder and harder to get non-partisan balance and factual point of views. Each time we read an article whether it is about politics, education, and economics and even bread it would likely be colored with politics – one side trying to paint the other as worst as possible and show off that they are the smarter one. Facts and figures are twisted, half-truths made like solid analysis, hoodwinking the innocent public. All these have made many Malaysians on the verge of giving up on politicians and their cohorts. One such example where half-truth was made as though it is an intellectually factual economic paper was the recent writing by 'an enemy of the state' who go by the name of Pak Sako. I consider him or her an enemy of the state because he or she prefers non-peaceful options like what happened during BERSIH 3 rather than the peaceful and productive action during #KL112. He or she constantly writes article to create panic, negativity and hatred. This fella is tarnishing the name of a national laureate who has left us and the fact is we are not even sure if this person masquerading as Pak Sako is a Malaysian! In the article about our national debt (http://www.freemalaysiatoday.com/category/opinion/2013/02/27/govt-debt-to-reach-rm1-trillion-by-2020/) this Enemy of the State, tried to deceive and alarm readers by focusing on 2 main themes. Firstly, noting our debt in Ringgit so it will look enormous to the average reader instead of the more exact approach by observing percentage over GDP and secondly, by forecasting a sharp increase in debt within the next few years second guessing that the government will continue the current populist agenda even post GE 13. This Enemy of the State did not even offer any comparative figures with other economies!!! I wanted a more non-politically biased point of view so I asked a close associate who is knowledgeable about economics and not into politics to explain the economics of debt without any partisanship. Just the facts, please. The following is a balanced explanation. At the end of the article, I will also provide a comparative debt ratio of countries all over the world so readers can see for themselves. Here we go. If like the US, government is expected to bail out the banking sector debts apart from its own debt, then we need to compare how much revenue government has to cover for any banking debt crisis and government debt crisis. To do that the formula will be as below;
So Malaysia has a Debt cover of 10.8x (times) How does this debt cover "debt gearing" as per accounting term compare with other countries? In 2011, a comparative data with other country figures are as below;
So the debt gearing might look high and of concern, but is almost on par with Germany, France & Netherlands and even lower than US and UK. But we may also realise that the problem countries like Italy, Greece have slightly lower gearing, and we are on par with problematic Spain. Are all debt gearing the same? It all depends on the income generating capacity and economic efficiency to service that debt. Just like companies and individuals, we can borrow to fund productive ventures and invest for income potential or borrow for current consumption i.e. welfare programs by government or cover large public spending deficits etc. Example : Greece debt gearing figure may look good in comparison to Germany, but Greece is having a debt crisis while Germany is not because Germany has managed to consistently run a current account surplus (income positive) for the last decade compared to Greece which has more consistently run a current account deficit (income negative). So same with Italy & Portugal, even though have similar "gearing ratio" with Germany.    With Malaysia, as long as we get more money/trade flowing into the country, the better we are at servicing our debt. However, since the last 2008 global economic crisis, the government had to spend more on the local economy to help cover the decline in current account surpluses, but it has still consistently been in surplus territory and beginning to show a trend reversal (if CPO prices & manufacturing export figures recover) Japan is not in the news for any debt crisis, even though very high gearing of 37x, because they borrow heavily from internal country funds rather than foreign (9% of Public Debt), where Malaysia is even lower at 3.6% of Public debt from foreign sources (BNM). Local sources like retirement funds and deposits are more stable source than fickle foreign lenders. And most importantly Japan still consistently runs a current account surplus (however increasing trend/historical high in foreign borrowing, as more foreign funds are needed to fund trade surpluses that have shrunk due to CHINA issues) With regards to Malaysian banking sector loans disbursed are for more productive business working capital/loan uses (52%), compared to US (only 15% business loans – while 35% for real estate loans etc ). In terms of government debt as per our Gross National Production (GDP), our revenue capacity, globally we are still below the critical 100% level. And if future trends are a concern, IMF forecast (2011 figures) suggests that Malaysia Debt per GDP ratio will be incremental to a still comparatively safe 60% level by 2016 (please refer the table below). Conclusion So as long as we can maintain our GDP growth, and get business growing rather than hinder it, then we should be okay. Any thinking and caring Malaysian should want the government to be vigilant with our debt. But the major subject of political discourse in Malaysia should be tackling these enemies of the state who are doing a disservice to the country by deliberately propagating lies and half-truths just to win some votes. Politicians and the rakyat from both sides of the political divide including those non-aligns must not support them. 'When the facts change, I change my mind. What do you do, sir?' John Maynard Keynes Note : 1. Current Account Current Account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid). The balance of trade is typically the most important part of the current account. And a current account surplus is usually associated with trade surplus. However, for the few countries with substantial overseas assets or liabilities, net factor payments may be significant. Positive net sales to abroad generally contribute to a current account surplus as the value interest or dividends generated abroad is bigger than the value of interest or dividends generated from foreign capital in the country. Net transfer payments are very important part of the current account in poor and developing countries as workers' remittances, donations, aids and grants and official assistance may balance high trade deficits. 2. Gross government debt (sortable; in percent of GDP) 
|
| Posted: 03 Mar 2013 11:57 AM PST
Some 72 Hindu based NGO's in Malaysia have decided unanimously to organize a Hindu Malaysia Rally on 16thMarch, 2013 at Selangor Chinese Assembly Hall, Kuala Lumpur from 3pm to 6pm. The main aim of this rally is to highlight demands of the Hindu Community in 5 key areas; mainly constitutional dilemma, conversion problems, Education, Economy, Social and Religion. A task force committee has been formed and all efforts are done to gather an audience of 10,000 Hindus on that day. For many generations, the Hindu Malaysian Community has toiled hard and contributed enormously in developing the economy and bringing prosperity and progress to the country. Unfortunately, the very community which has contributed so much has been left far behind. Thus, in view of the coming 13th General Election, Hindu Malaysians have the opportunity to position them to ensure that their rights and needs are taken care which in turn will strengthen the Malaysian Nation. In about 62 Parliamentary Constituencies and 148 State Assembly Constituencies, Hindus form a significant section of voters who can determine the outcome of the General Election. "The right time has come for Hindu Malaysians to show our solidarity once again by participating in the rally. We owe this duty to the community and our future generations because the Government of the day will decide on policies which will shape the future direction of the nation" said Dr.R.Rupa Saminathan, the organizing secretary of the rally.
|
| Was there a hidden peace deal between Philippines government and Malaysia? Posted: 03 Mar 2013 11:34 AM PST
The recent fiasco in Sabah looks like your usual invasion scenario, but has anyone given a thought that all this could be a ruse to play out the hidden peace deal brokered by Malaysia along with the Philippines government? Yong Ming Hui The Malaysian and Philippines could be working hand in hand together to orchestrate the current fiasco, because it is all too convenient that opposition parties are implicated here, notably that of Anwar Ibrahim. The opposition has nothing to gain from doing this, and to the risk to be discovered/exposed is too high and suicidal. The reason why both governments would conspire to frame Malaysian opposition is simply this. If the opposition party ever comes to power in Malaysia, their first job would be to weed out the phantom voters, and to correct the mistakes of Mahathir with the sabah IC project. The royal commission for the Sabah IC project would commence full fledge and Mahathir would be implicated and possibly prosecuted. The removal of illegal Muslim Pinoys and those from IC project, would become a political and economical headache for the Philippines government who would have to accept them back. This sudden influx of unwanted Malaysian Pinoys would be too many mouths to feed in terms of jobs for the Pinoy government. The hidden peace deal package brokered by Malaysia with the requirement of the Philippine government would be to include the continuous importation of Pinoy Muslims to Sabah, therefore increasing even more voters for project IC which is still possibly ongoing. This helps the Pinoy government, who doesn't really want to deal with these 'rebels' since Malaysia is willing to import them for political purposes. But in order for this plan to work, the present government in Malaysia has to remain Barisan Nasional, and not the Opposition party, which has no access to such hidden deal and not obligated to honor them since such arrangement is a liability to their existence, if they ever come to power. That also, in addition to the Philippines government to never stake a claim on Sabah again, as long as Malaysia is willing to solve their rebel issue, by absorbing and assimilating them into Sabah. That, perhaps, is one of the most potent reason and deal for the Pinoy government to work with Malaysia's Barisan Nasional to frame the opposition party, namely Anwar Ibrahim, for the invasion of Sabah.
|
| GE13 Hotspot: Johor (aka How One Chinaman Will Lose Johor for UMNO) Posted: 28 Feb 2013 11:12 AM PST
Azman A. Yahaya As many of us are aware, despite Pakatan Rakyat's growing popularity among voters in various states in Peninsular Malaysia, Johor has been widely acknowledged as Barisan Nasional's 'safe deposit'. I am here to tell you: That is no longer the case. A strong wave of disenchantment is brewing among us anak-anak Johor over the actions of one Chinaman from Sabah, the so-called 'Property King of JB' and 'de-facto Johor MB' Lim Kang Hoo who is being handed the assets of our beloved state of Johor on a silver platter, all thanks to his puppet MB Ghani Othman and fellow UMNO cronies.
1. KFC In 2012, Johor Corporation Bhd (JCorp)'s controversial decision to sell its cash-cow KFC was met with resistance, especially the Malay community because we were worried that KFC would end up in the hands of non-Bumis. JCorp's official reason for selling KFC was that immediate cash was needed to cover its RM3.6 billion debt. But then again, it shot down the Malay Chamber of Commerce's counter-offer, which was of 10 sen more per share. Major questions were raised and things went quiet after that. And now, our worst fears have come true: Tan Sri Lim Kang Hoo has surfaced as the majority owner of KFC through his vehicles CVC Capital Partners, Credence Resources Sdn. Bhd. and Iskandar Waterfront Holdings Sdn. Bhd. To get his slimy hands on KFC, Lim Kang Hoo used a complex system of layered deals, as shown below:
Looking at the flow of money in the diagram, it is obvious that the complicated layers of deals were used to cover Lim Kang Hoo's hand in the grab and mask the public's eye over the 'hanky panky' transactions involved.
2. JCORP'S PROPERTIES The entire KFC 'restructuring exercise' includes the signing of questionable agreements with dubious terms and conditions between Lim Kang Hoo and JCorp. One of the hidden clauses in the agreements include a so-called 'safety net compensation' for Lim Kang Hoo whereby if Triple Platform Sdn. Bhd. is not listed within 4 years, he stands to grab more than RM600 million worth of 'pre-determined properties' from JCorp. Considering the fact that JCorp owns key properties such as JB's Menara Ansar, Puteri Pan Pacific, Persada Convention Centre, KOMTAR and KL's Pusat Bandar Damansara, Lim Kang Hoo knows this deal is a finger-lickin' good one. Should this clause trigger however, the ramifications to JCorp's very existence is at stake. Even a seasoned Chinaman developer like Lim Kang Hoo needs help to pull something like this off. This is where his puppet, JCorp Chairman and Menteri Besar Johor Abdul Ghani Othman comes in along with Ghani's cronies, including: Dato' Ahmad Zaki Zahid, former member of Pak Lah's 'Fourth Floor Boys' and former JCorp man, current Ketua Pemuda UMNO Putrajaya and EXCO Pemuda UMNO. To no one's surprise, he has been appointed MD of Triple Platform Sdn. Bhd. Wan Ahmad Firdaus Wan Ahmad Fuaad, drinking buddy and fellow BOD member of JCorp with Ahmad Zaki, who has since quit JCorp to join JP Morgan. To no one's surprise again, JP Morgan was the appointed advisor for this deal. To hell with any conflict of interests.
Ghani, Zaki and Fridaus a.k.a. Lim Kang Hoo's Three Stooges – What's with the red baju and ties? Nak mintak Lim Kang Hoo kasi angpau ke?
My parents are born and bred Johoreans and they are old-school UMNO members. They worked very hard to send me to Australia for an education with the hope that one day I can contribute to our beloved state, party and community. Even as I am doing my best to fulfill my parents' wishes, I will not stand idly by while a Sabahan Chinaman, aided by 3 traitorous Malays, waltzes into JB and grabs our rightful Malay heritage land and forcing the locals to be displaced put into little flats for his convenience to steal our billions. I thought UMNO is supposed to defend our Bumiputra rights. UMNO is not doing this but instead is helping a Chinaman rape our Malay assets. What happened to Janji Ditepati, Satu Malaysia and the New Economic Policy (NEP)? Has it become Janji Dilepasi, Sapu Malaysia and the Never Ending Penipu?
|
| You are subscribed to email updates from Malaysia Today - Your Source of Independent News To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 ulasan:
Catat Ulasan