Hubris in Desperation

In his utter desperation of ousting Prime Minister Dato’ Sri Mohd. Najib Tun Razak primarily via demonisation of the latter, Tun Dr. Mahathir resorted to lame lies to instigate the public.

It is very irresponsible to proclaim the Malaysian Government is in financial trouble and such utterance is Dr Mahathir’s poor attempt to hoodwink the simpletons.

It is to lie with the objective of erosion of confidence, by local and global business communities.

The fact is that Malaysian Government financial health is rated at A- by leading global ratings houses.

Malaysian economy is very active and productive. The healthy current account demonstrates the production and export is much higher than imports.

The exports have been recorded as 227th consecutive months of surplus over imports.

The RM1.7trillion market capitalisation of the Malaysian stock market is evidence of regional and global confidence of the nation being ‘Business as Usual’ and going concern.

If taken in comparison, the Malaysian Government is in far worse position of debt when Dr Mahathir was in charge thirty years ago.

Debt ratio against GDP was 104% (compared to 53% today) and out of that amount of debt, 64% was in foreign currency. It means servicing the debt in the future include the risk of higher exchange rate.

Then the foreign reserve stood only at USD8bil compare to over USD97bil today. Even if the production side of the Malaysian economy is completely crippled, the foreign reserve would able to sustain eight and half months of imports.

It is interesting to note that Dr Mahathir only proclaimed “PM Najib led the country into so much debt that it is insolvent”.

The fact is that, the Fourth Prime Minister simply threw a reckless lie for that. He did not even try to offer evidence to support his claim. Even if he did, he would not be able to.

The Federal Government is solvent. Every month on the dot, all 1.6mil civil servants get their pay. So does the pensioners.

Year on year, Federal Government never by operational failure unable to release the RM70odd bil in emoluments, to so many Malaysians whose livelihood dependent on the government system.

The Federal Government as the single largest paymaster provided a sound eco-system for a huge stream of local entrepreneurs to development and expand the business. Many businesses thrived for generations because of the reliability of the Federal Government to spur domestic economy with consistent and reliable expenditure.

A good example is KFC restaurant. The sound domestic economy provided the conducive market for the franchisor to open over 500 restaurants all over Malaysia.

Systematically, had the Federal Government is insolvent and unable to service the emoluments of 1.6mil civil servants and the 8-9mil other Malaysians as part of the direct eco-system, then JCorp would not able to maintain all 500 restaurants operating.

It is morally wrong for the Statesman to use his position to try and manipulate the rakyat confidence, especially for a personal vendetta to demonise Prime Minister Najib in the strategy of toppling the latter.

Published in: on November 16, 2016 at 12:00  Comments (7)  

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7 CommentsLeave a comment

  1. Are U the HUBRIS in desperation to hudwink your readers….???

    • Guess cikminah is one who only drives her (or his) thoughts on a single lane one way traffic, thinking any oncoming vehicles are a nuisance to her covoluted flow of thoughts.

      • U are so funnylah.
        Are u living in Guar Cempedak………?????

  2. “It is very responsible to proclaim the Malaysian Government is in financial trouble….”

    Yes, Dr.M was a ‘very responsible’ man, now and during his tenure as PM.
    While… Najib, as PM cum self-elected Finance Minister was very irresponsible to the nation in soliciting dubious middlemen in government dealings such as Razak Baginda, Deepak Carpet & now… Jho Low in 1MDB’s Billions of debt. At the same time, wasted hundreds of million in commission payment to them and neglecting KPDNKK’s jihad to eradicate middlemen in business transaction.

  3. 1. We refer to former Prime Minister Tun Dr Mahathir’s blog post dated 16th Nov 2016 titled “Najib’s China Trip” which contains numerous errors and misconceptions – either deliberate or due to a lack of understanding of the details.

    2. The MCA President was not trying to make Najib’s dealings with China as a racial issue. He was pointing out to the unfair criticism of the historic RM143 billion worth of trade and investment deals that Malaysia had signed with our largest trading partner and investor.

    The China delegates who had visited the recent MCA annual assembly had also expressed regret and unhappiness at the opposition over the unfair criticism of our two nations trading and investment deals.

    3. The crux of Tun Mahathir’s criticism seems to center on the soft loan that Malaysia will take on to build the East Coast Railway project which he said will increase the Malaysia Government’s debts considerably and that the main contractor would be a Chinese company.

    4. The soft loan given by the Export-Import Bank of China is on very favorable terms with a low interest rate and has a 20 years tenure. It is also denominated in Ringgit Malaysia and not in USD or Yuan as alleged by Tun Mahathir.

    This makes Tun Mahathir’s argument of foreign exchange risk a moot point.

    5. Due to the rapid development of rail link in China over the past two decades resulting in a rail network of more than 125,000 kilometers, there is little doubt that China is now among the leaders in railways and rail technology.

    6. Although the main contractor will be China’s largest construction company, our agreement is that a significant portion of this work will be sub-contracted to local companies. There will also be a transfer of technology.

    7. The structure of this project to involve local contractors is different from the construction of the KLCC where the architect was an Argentinean, tower 1 was contracted to the South Koreans while a Japanese company was built tower 2.

    8. It is regrettable that Tun Mahathir also repeats the allegation that on a per kilometer basis, the ECRL is over-priced. These allegations have already been been proven untrue by detailed answers by Dato’ Abdul Rahman Dahlan and by Datuk Seri Liow Tiong Lai.

    9. To correct Tun Mahathir, the RM55 billion price also includes the cost of all rolling stock, signalling systems and supporting infrastructure.

    10. The ECRL is expected to add 1.5% additional GDP growth per year to the east coast states of peninsular Malaysia and can help the east coast states to catch up with development with the west coast states.

    11. Additionally, the ECRL will directly connect the Kuantan and Kemamam ports in the east with Port Klang on the west coast resulting in a strategic advantage in logistics handling and shipping for Malaysia.

    This 688km long main line plus 20km of spur tracks will be a game-changer.

    12. As with any greenfield infrastructure project with strategic importance, there is significant economic multiplier and spill-over effects that will boost economic economy.

    This will mean that we will more than recover its investment in the ECRL from additional tax gained, asset appreciation and other direct and or indirect revenues.

    13. Tun Mahathir and his colleagues in the PPBM opposition party continues to wrongly state that 1MDB’s debt is RM53 billion despite knowing that 1MDB had undergone a rationalization exercise.

    14. Due to the successful divestment of Edra Energy, a stake in Bandar Malaysia and other rationalization exercises, 1MDB’s debt has been significantly reduced to about RM31 billion.

    Despite knowing this, how is it possible that Tun Mahathir still insist that 1MDB’s debt remains at RM53 billion?

    15. Other than the four outstanding long-term bonds with tenures of 10 years to 30 years totaling RM31 billion that are appropriately matched to revenues and profits of 1MDB’s current projects., no other 1MDB loans or debts remains

    16. 1MDB currently has RM1.9 billion in cash that will allow it to further develop its strategic Tun Razak Exchange and Bandar Malaysia projects that will add significantly to Malaysia’s growth over the next decade.

    17. It is unfortunate that Tun Mahathir has been wrongly advised that the government’s current outstanding debt of RM600 billion is denominated in US Dollars where he allege that due to the strengthening of the US currency, our government debt is now RM900 billion.

    18. For Tun Mahathir’s information, according to Bank Negara’s latest statistics, 97% of Malaysia’s debt is denominated in Ringgit Malaysia. Any changes in foreign exchange rates has only a marginal effect on the value of our government debt.

    19. The government’s conscious decision to only borrow in Ringgit Malaysia was a result of learning from the past where Tun Mahathir’s government had borrowed substantially from Japan with loans denominated in Yen to construct mega-projects – among others, the Kuala Lumpur International Airport, the Pahang-Selangor Raw Water Transfer Project, the Kenyir Hydroelectric Power Plant and the Port Dickson Power Station projects.

    The subsequent appreciation of the Japanese Yen after the loans had caused significant losses to our country.

    20. The current government is determined not to repeat this mistake of the past and that is why the government’s debt is denominated in Ringgit Malaysia and is only marginally affected by foreign currency exchange movements.

    21. As a result of his personal vendetta, Tun Mahathir in partnership with the opposition continues to resort to using lies and scare tactics to repeatedly undermine the confidence of all Malaysians and allege that Malaysia is on the path of bankruptcy.

    22. Since the founding of Malaysia, the opposition led by the DAP had continuously claimed that Malaysia will soon go bankrupt. Those who have lived in the 1960s onwards can attest to this.

    Despite more than 50 years of these bankrupt allegations, Malaysia continues to grow from strength to strength.

    23. Currently, all three major international credit rating agencies gives Malaysia an “A” credit rating which signifies investment grade. Our GDP growth recently recovered in the 3rd quarter to 4.3%, we are now in our 227th consecutive month of trade surplus, we have a current account surplus and our foreign exchange reserves holds steady at USD97 billion.

    No one else, except Tun Mahathir and the opposition claims that Malaysia is going bankrupt – and they have said the same thing for more than 50 years.

    24. We would also like to ask Tun Mahathir why Malaysia did not go bankrupt when he more than doubled our debt from 44% to 103.4% Debt-to-GDP ratio in 1986 within the first 5 years of him becoming prime minister.

    If at 103.4%, we did not go bankrupt then. So how is it that with the current debt-to-GDP ratio of 54%, Malaysia will go bankrupt now?

    25. It is hard to take Tun Mahathir’s words seriously nowadays. Due to his political agenda and personal vengeance, he has u-turned on so many things he had said of in the past – among these include his views on Anwar Ibrahim, BERSIH, George Soros, DAP and his call for foreign intervention.

    26. However, by resorting to outright lies and baseless allegations to continually undermine confidence in our country’s economy and by actively sabotaging our foreign trade deals and investments, you are helping to destroy Malaysia’s economy.


    16 NOV 2016

    • Pelabur Malaysia paling berisiko – kolumnis Bloomberg

      Pelabur Malaysia paling berisiko di Asia jika perang perdagangan meletus antara China dan Amerika Syarikat yang bakal diteraju oleh Donald Trump, kata kolumnis Bloomberg Andy Mukherjee.

      Janji-janji kempen Trump, termasuk melabelkan China sebagai penyanggak mata wang dan mengakhiri “semua salah laku perdagangan asing”, akan mencetuskan tindak balas, kata Mukherjee dalam seksyen Gadfly portal kewangan itu.

      Menurutnya, pelabur Malaysia adalah yang paling terdedah di rantau ini kerana negara ini bukan rakan dagangan Amerika Syarikat yang besar.

      Ini tidak seperti China, Jepun, Korea Selatan, India dan Singapura, yang adalah antara 15 rakan perdagangan terbesar Amerika Syarikat, tulis Mukherjee.

      Pelabur yang tidak tentu arah berebut untuk membeli dolar di tengah-tengah ketidaktentuan Trump “menjadikan Malaysia pasaran baru yang paling terdedah,” katanya.

      Semalam, Moody berkata hutang luar negara yang tinggi menjadikan Malaysia paling terdedah.

      Ini susulan CIMB Research yang menjangka ringgit akan terus menjunam kepada RM4.80 berbanding dolar Amerika dalam tempoh enam bulan akan datang.

      Kelesuan ringgit juga boleh memberi kesan terhadap sentimen pengguna yang lemah, yang sudahpun terjejas dengan skandal 1MDB, kata Mukherjee.

  4. This narcissistic moronic dangerous old man will do anything to realise his dreams . It doesn’t matter to him if he has to trade in his children and spouse to the pimp. Seeing him jilat aljuburi is an insult to God fearing people.

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