I AM WONDERING how much more insults will the majority of Malaysians absorb before they wake up politically to find that they have been had big time by the Barisan Nasional (BN) government.
After 55 years of BN’s plundering of the nation’s wealth, 26 million Malaysians are saddled with a RM502.4 billion federal debt or 53.7% of the Gross Domestic Product (GDP) this year.
That is only 1.3% short of the 55% legislated debt ceiling.
Also, there are RM118 billion in off Budget liabilities or sovereign guarantees for private corporations like the Port Klang Free Zone (PKFZ) and government-linked company loans ending 2011.
However, many economists believe that we have already breached the legislated debt ceiling as International Trade and Industry Deputy Minister Mukhriz Mahathir appeared to have “accidentally” leaked out some alarming information while speaking to new students in Universiti Utara Malaysia (UUM) on Sept 6, 2012.
'Loose-lips' Mukhriz gave the game away?
In trying to paint a rosy picture of the country’s economy, Mukhriz claimed that the nation was on the right growth track due to “wise” financial management, without reliance on heavy overseas borrowings.
“The government has about RM800 billion in borrowings. Of this figure, foreign borrowing is only 17%. The bulk is from local financial institutions,” TheEdge reported Mukhriz as saying.
Now, is our federal debt as revealed by Budget 2013 at RM502.4 billion or is it RM800 billion?
Mukhriz’s argument is also flawed when he tries to justify good financial management by differentiating between domestic and foreign borrowings.
A debt is a debt. It is still what you owe, nothing more, nothing less.
And for the first time in 55 years, and within a year, the BN government announced various cash handouts to qualified individuals, in the guise of helping the lower income group of Malaysians.
Those handouts are clearly an attempt to pacify and secure the support of the fast growing restless Malaysians who are struggling to make ends meet daily.
Malaysians will go to the national polls, latest next June, to cast their ballots to elect their new state and federal governments.
Clearly, the cash-strapped BN government is forced to give out such unprecedented cash handouts because of their fear of losing the rakyat (people)’s mandate to remain in power after the 13th General Election.
The fear stems from BN’s unprecedented electoral losses in the March 2008 political tsunami – even losing its traditional two-thirds majority in Parliament for the first time in Malaysia’s electoral history.
Generally, the Umno-led BN has not been able to change or reform to win back the support of Malaysians. Instead, many expect the BN to perform worse, if not lose power.
Only the Umno-controlled Election Commission’s bias handling of the election process, giving the edge to the BN, stands in the way of a change in government in the next national polls.
Worth only 5 sen each day of the past 55 years
To get back to what I wanted to highlight in this blog posting, I wish to refer to a simple and yet interesting calculation which I found in Facebook.
Haji Sobey refers to BN’s two BR1M cash handouts amounting to RM1,000 to each qualified Malaysian.
You divide RM18.18 by 12 months, you get RM1.51 a month.
You divide RM1.51 by 30 days, you get 5 sen a day!
Mathematically, this is correct, and so it makes sense.
Haji Sobey concludes: “Telah ditipu, adakah akan terus ditipu? Pilihan ditangan anda …” (You have already been taken for a ride, do you want to be continue to be taken for a ride? The choice is in your hand …”
Corrupt & Bankrupt
Haji Sobey is a Malay who is able to see through the devious Umno-led BN and its cronies who have swept up hundreds of billions of ringgit in contracts, emptying the national coffer with hundreds of financial scandals.
Now, do you see why we are heading towards the direction of Greece as a corrupt and bankrupt country? Can we afford another 55 years with the Umno-led BN?
I, for one, cannot stomach BN-Umno’s insult that my votes or ballots are worth only 5 (five) sen (cents) in the next general election.
The MoF said policymakers will ensure Federal Government debt does not surpass 55% of gross domestic product (GDP) and debt service charges will be capped below 15% of revenue.
Federal Government debt is anticipated to climb 10.1% to RM502.4 billion in 2012 from RM456.1 billion in 2011 due to higher domestic borrowings. Total debt as a proportion of GDP will come in higher at 53.7% in 2012 compared to 51.8% in 2011.