Tuesday, October 21, 2008

Govt of Malaysia in deep financial problems.

According to Bank Negara,the foreign reserves of Malaysia as at 31st august 2008 is US$122,580.8 Billion.If Malaysia really have this amount of reserves ,we will not be hit by a recession as this money can be use wisely to prop up and insulate the economy from the world recession.If you ask any business people,they will tell you that the economy is in deep slowdown with decrease in export especially palm oil and foreign investors withdrawing from Malaysia resulting a very weak stock and property market.With the reserves mentioned,the Govt can carry out beneficial infrastruture projects like widening the LRT.With the help of the MULTIPLIER effect,the money spend on infrastructure projects will help the economy to grow and prevent a recession in Malaysia.Unfortunately,We do not have the above amount as proven by the followings events and announcements.
  1. Increase in petrol price by 78 sen.The Govt saved RM13.8 Billion in subsidy because of this increased.If we have the US $122 Billion,it is not a problem for us to cover the RM 13.8 Billion especially when we are a net exporter of oil.
  2. Cancellation of many major projects like the Penang Outer Ring Road.
  3. Today announcement where the govt order EPF to loan RM5 Billion to Valuecap,an investment vehicle to buy shares in Bursa Malaysia.
The above prove that the Govt of Malaysia is in deep financial crisis due to massive corruption by the govt of Umno and BN.

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