Thursday, November 3, 2011

Malaysia Bankrupt by 2019?

Some of the quotes that yours truly thinks of utmost importance from an article that will be quotes at the bottom of this post.

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"Malaysia has a population of 28 million and a civil service of around 1.3 million. Out of the 28 million, only one percent are paying income tax. This clearly shows that 99% are either below that income tax bracket or merely earning too little to need to pay taxes. With inflation and the prices of goods continuing to rise, expect even fewer people to pay income tax in the near future."

"But not only is it confirmed that the Malaysian economy and system is riddled with rampant corruption, widespread inefficiency and general incompetence, the country has reached near to the end of the line. Bankruptcy is visible and to the extent that a time frame can be drawn. Minister in the Prime Minister’s Department Idris Jala, who shocked the nation last year by warning of bankruptcy by 2019 if the government continues with its current spending pattern, reiterated his view on Tuesday."

"Idris had this to say, “If our economy grows less than four per cent… and we don’t cut our operating expenditure, if we borrow at 12.5 per cent, if our annual debt rises to 12.5 per cent and our revenue does not grow, then it will happen.”" 

"According to the AG’s Report, Malaysia’s national debt rose by 12.3 per cent to over RM407 billion last year, and although the economy grew by 7.2 per cent in 2010, last year’s fiscal deficit maintained public debt at over 50 per cent of GDP for the second year running. The government owed 53.1 per cent of GDP, slightly down from 53.7 per cent last year."


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Malaysia Heading for Bankruptcy????