Season of slip-shots

Yesterday was a colorful day for reporting and analysis. One, is about Sime Darby Corporate Communications coming strong against our posting for the Board of Director’s (BOD) proposal to the shareholders Extraordinary General Meeting set on 8 November to approve a special ‘grant scheme’ for the senior management and executives.

The other one is about Bernama report on what Deputy Minister MITI Dato’ Mukhriz Mahathir said to a group of Universiti Utara Students freshmen/women earlier in the month at Sintok, Kedah, Apparently, Bernama reported that Mukhriz claimed that the Federal Government debt and borrowings stood at RM 800 billion.

That was not exactly true. According to Mukhriz, he did not make that claim as per what Bernama report. He is not known for being inaccurate with facts.

The Federal Government debt and borrowings actually stood at RM 456 billion. That is 52% of the 2011 GDP. And Mukhriz is right. The amount is manageable and the Federal Government has been steadfast in servicing all the borrowings and financial commitments all along.

In fact, Malaysia is better at borrowing for the purpose of socio and economic development as compared as some of the developed European nations. Take Italy for example. The borrowings stood at Euro 1.95 trillion or 120% of the GDP.

15 June 2012 Last updated at 15:30 GMT

Italy selling off state assets to reduce debt mountain

Portrait of Mario Monti
Italian prime minister Mario Monti is struggling to reduce his country’s debt mountain

The Italian government hopes to raise 10bn euros (£8.1bn; $12.6bn) selling off three state-owned companies, in a bid to reduce its crippling debt mountain.

Prime Minister Mario Monti described the measures, which include a reduction in the number of state employees, as “very robust”.

The companies, Fintecna, Sace and Simsest, are all owned by the country’s economy ministry.

More privatisations are likely.

The government is also reducing the size of its military forces and plans to sell off property released by this process.

The property will be put into a fund, then valued and sold to private investors.

In other cost-cutting measures, the government intends to merge some departments and reduce the number of employees.

Italy is in danger of buckling under the weight of its public debt, equal to about 120% of its gross domestic product (GDP).

On Thursday, the Bank of Italy announced that the country’s public debt level had reached a record high of 1.95tn euros (£1.57tn).

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So, don’t be quick to jump at what has been reported. Analyse the information and cross-check, when necessary.

Published in: on October 20, 2012 at 01:15  Comments (7)  
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