The Malaysian people decide... and we need to tell the PM and Government if we are OK with the 2025 BUDGET - are we OK for Malaysia to spend more than it earns. Do not just focus on the 'GOODIES' the Budget offers next year, without worrying the impact of our National DEBT problems..
DON'T WORRY ...BORROW NOW AND ENJOY - WORRY ABOUT DEBT SERVICING, REPAYMENT OF MATURED DEBTS, DEBT REDUCTION,... LATER...
If we do not say anything ... then we AGREE to suffer the consequences of growing DEBTS...
PM Anwar has been cutting down 'Federal Government Spending' by removing 'subsidies' ...diesel, petrol(soon),etc ....all of which means an increase in COST OF LIVING...
But, then he wants to GIFT Public Officers with the BIGGEST pay-rise ever...[This causes worry, because the past has showed us that every time public officers pay rises...the cost of things also rises...)
Civil servants will be getting salary increments of between 7% and 15% under the new Public Service Remuneration System (SSPA), says Prime Minister Anwar Ibrahim. Civil servants in top management will receive a 7% wage hike while those categorised as implementers, managers and professionals will see a 15% pay increase.
With the LOSS OF SUBSIDIES - we would have expected that it would go towards FEDERAL DEBT reduction - but NO. PM Anwar has just given us the BIGGEST ever BUDGET in terms of SPENDING...a DEFICIT BUDGET, which means Malaysia wants to again spend so much more that what it is expected to earn next year - meaning again MORE LOANS.
Looks like Anwar's plan is to CUT SUBSIDIES - to reduce spending, do we agree to that? After all Malaysia have been using 'cheap labour' to attract foreign investors - but then for the people, it helped us with the SUBSIDIES that kept cost of living affordable - but, if subsidies are removed, can we still be OK?
Should the government be looking at other means of cutting expenses - maybe, the wages/allowances of MPs and Ministers should be reduced. Maybe, their pension ought to be CAPPED to no more than RM10,000? Maybe, the multiple pensions be eliminated - no more pension as ADUN from State Government and another pension from Federal Government for MPs - Maybe just ONE Pension(whichever higher) from the Government(State or Federal).
A LOT of MONEY has been lost by 'wrongs' of Ministers - see the mess that 1MDB has landed us in.
Post Mahathir era, have seen Malaysia's FEDERAL DEBT skyrocketing - and the reason was that the Prime Minister and Government acted IRRESPONSIBLY - They SPENT more than Malaysia earned - which meant that to cover the spending, the government had to BORROW...and BORROW...
The people and the MEDIA focused on the 'GOODIES' that we will all be getting - and downplayed the LONG TERM MESS we were getting ourselves into...
When MALAYSIA BORROWS - there is the added annual 'debt servicing' charges that Malaysia has to pay... RM46 Billion for Debt Servicing in 2023, if lower debt lower debt servicing charges - and more money for the people...
Then, there is the question of REPAYMENT of the DEBT SUM when the time is up... when the DEBT MATURES. The Lender can insist FULL REPAYMENT then and there, and Malaysia will have to pay up immediately. The LENDER may allow for an extension, but this will usually come with NEW TERMS which may include HIGHER annual debt servicing charges...
The AUDITOR GENERAL has cautioned this government...
The Report also advised that the Federal Government should pay serious attention to new borrowings. This step is aimed at focusing on financing loan repayments that will mature, as the Federal Government needs to allocate funds to repay maturing loans totalling RM773.750bil over the next 10 years. The audit recommends prudent federal debt management to reduce debt and liability exposure and monitor rationalisation and consolidation efforts.
Now, look at https://countryeconomy.com/national-debt/malaysia DATA - and look at Malaysia's DEBT and also look at DEBT per capita(DEBT per person) noting also Malaysia's small population.
During COVID Pandemic, an unusual situation - a higher borrowing justified, but things are NORMAL again, and the government need to be DISCIPLINED and NOT Spend more than it earns. Additional debt of RM90 Billion Plus in 2023 really cannot be justified...
Maximum new DEBT should be restricted to RM5-10 Billion - BEST if NO NEW DEBT, and a REDUCTION of Existing DEBT...
Govt debt went up to RM1.173 trillion in 2023, says Auditor-General
- Nation
-
Monday, 14 Oct 2024
KUALA LUMPUR: The Federal Government's debt was recorded at RM1.173 trillion in 2023, an increase of RM92.918bil or 8.6% compared to RM1.080 trillion in 2022, says the Auditor-General’s Report.
In the Report 3/2024 released on Monday (Oct 14), the debt consists of Domestic Loans amounting to RM1.143 trillion or 97.5% of the total Federal Debt, and Foreign Debt totalling RM29.851bil or 2.5%.
"Domestic Loans increased by RM92.580bil or 8.8%, while Foreign Debt rose by RM0.338bil or 1.1%.
"The Federal Liabilities position at the end of 2023 showed an increase, with the Federal Liabilities to GDP Ratio at 81.8% compared to 78% in 2022.
"This is due to the nominal GDP growth rate in 2023 being 1.6% slower compared to 15.8% in 2022. The Federal Debt to GDP Ratio in 2023 was 64.3%, up from 60.2% in 2022.
"Guarantee Commitments also increased by RM3.288bil or 1.5% to RM227.404bil compared to RM224.116bil in 2022," the report stated.
The report also mentioned that to improve Federal Debt management, the government implemented fiscal reforms with the approval of the Public Finance and Fiscal Responsibility Act 2023 (Act 850) in Parliament on Oct 11 last year.
The Report also advised that the Federal Government should pay serious attention to new borrowings.
This step is aimed at focusing on financing loan repayments that will mature, as the Federal Government needs to allocate funds to repay maturing loans totalling RM773.750bil over the next 10 years.
The audit recommends prudent federal debt management to reduce debt and liability exposure and monitor rationalisation and consolidation efforts.
The targets are set for a deficit not exceeding 3% of GDP, national debt not exceeding 60% of GDP, and Financial Guarantees not exceeding 25% of GDP, aligning with fiscal objectives under Act 850, the report said. - Star, 14/10/2024
RM39.7bil from govt went to pay 1MDB loans
- Nation
-
Tuesday, 15 Oct 2024
KUALA LUMPUR: A total of RM39.74bil in Federal Government grants were used to repay the 1Malaysia Development Bhd (1MDB) loans and related payments over a five-year period, according to the Auditor-General’s Report 3/2024.
The grants were for principal repayment and other expenses, including bond interest and coupon payments.
Besides this, the Federal Government also had to set aside another RM9.46bil - RM5bil for the principal of Sukuk Islamic Medium Term Notes (IMTN), which matures on May 27, 2039 and RM4.46bil for IMTN coupon payments for the period from 2024 to 2039.
The report also noted that the Federal Government would have to repay RM5bil in committed guarantee related to 1MDB after 11 years.
According to the report, the Federal Government repaid 1MDB loans totalling RM13bil last year, a 749.7% increase compared to the RM1.53bil repaid in 2022.
The Auditor-General, among other things, recommended that the Federal Government recover assets related to 1MDB and SRC International Sdn Bhd from both domestic and foreign parties.
The recommendation included a proposal that the recovered assets be used to cover the debt repayment expenses of 1MDB and SRC companies as well as other debt expenses.
The report said this should be done, as Assets Recovery Trust Account would be closed by 2028 as stated under its trust directive.
The Auditor-General’s Report said the Federal Government’s debt was recorded at RM1.173 trillion in 2023, an increase of RM92.918bil or 8.6%, compared to RM1.080 trillion in 2022.
In the Report 3/2024 released on Monday, the debt consists of Domestic Loans amounting to RM1.143 trillion or 97.5% of the total Federal Debt, and Foreign Debt totalling RM29.851bil or 2.5%.
“Domestic Loans increased by RM92.580bil or 8.8%, while Foreign Debt rose by RM0.338bil or 1.1%.
“The Federal Liabilities position at the end of 2023 showed an increase, with the Federal Liabilities to GDP Ratio at 81.8% compared to 78% in 2022.
“This is due to the nominal GDP growth rate in 2023 being 1.6% slower compared to 15.8% in 2022. The Federal Debt to GDP Ratio in 2023 was 64.3%, up from 60.2% in 2022.
“Guarantee Commitments also increased by RM3.288bil or 1.5% to RM227.404bil compared to RM224.116bil in 2022,” the report stated.
The report also mentioned that to improve Federal Debt management, the government implemented fiscal reforms with the approval of the Public Finance and Fiscal Responsibility Act 2023 in Parliament on Oct 11 last year.
The report also advised that serious attention be paid to new borrowings.
This step is aimed at focusing on financing loan repayments that will mature, as the Federal Government needs to allocate funds to repay maturing loans totalling RM773.750bil over the next 10 years.
The
targets are set for a deficit not exceeding 3% of GDP, national debt
not exceeding 60% of GDP, and Financial Guarantees not exceeding 25% of
GDP, aligning with fiscal objectives under Act 850, the report said. - Star, 15/10/2024
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