YOURSAY | ‘Well, we have to take that risk. We did that in 1998 and we survived…’

Think tank predicts wider fiscal deficit for Malaysia

Gerard Lourdesamy: Why should anybody believe this think tank (BMI Research)? Even the economic data provided by the previous government was fake, according to PM Dr Mahathir Mohamad.

Why did they not comment on the 65 percent GDP to debt ratio? It stands as a whopping RM800 billion now.

So what if the fiscal deficit raises slightly? It is a common occurrence when expansionary policies are put in place. It will correct itself with higher growth and increased revenue from investments and taxation.

Anonymous_1419577444: Don't be so fast to suggest that zero-rated GST will cause the economy to tank.

Mahathir has not disclosed yet how much of the national economic statistics announced by Najib Razak's regime is actually fake, which means that Malaysia could have already been on the verge of bankruptcy before Pakatan Harapan came into power.

Anonymous_d395a08d: Our government's finances are balanced from the following sources:

1. Tax revenue: After zero rating GST (which contributes close to 20% revenue), what's the replacement, the timing and the magnitude?

2. Spending: Will there be any spending cuts and/or increases? How fast can we cut wasteful spending and corruption?

3. Windfalls: How fast can we claim back the 1MDB money stashed overseas, which is a one-time revenue. How long will current high oil prices last before resuming its long-term structural decline?

4. Borrowings: If we can't balance the above, the gap will have to be met by borrowing. This is where the foreigners come in to dictate how much we have to pay for interest, whether we like it or not.

So, the best is to get our house in order, and sometimes painful choices have to be made. Let's be realistic that even under a Harapan government, we cannot expect a free-for-all policy for the people.

Anonymous_d395a08d: Before we starting lashing out at these foreign research organisations, spend a moment to think who their audience is.

Certainly not you and I, but foreign institutional investors, whom the Malaysian government unfortunately needs to sell its bonds to.

Could they be wrong? Yes. But the fact is their opinions are followed closely by bond investors who will determine how much interest our government has to pay in rolling over our debt.

That interest rate is going to influence the mortgage rate you and I have to pay every month.

Anonymous 2399241454684228: Well, we have to take that risk. We did that in 1998 and we survived, and now we will do it again.

But this time, with the help of Malaysians and good governance. Within three years, we can be back on our feet and we will roar again.

This is because by now, we have all the expertise needed and they know how and when our economy will be on track.

I am not at the liberty to convince our readers, but I am very positive if our nation is helmed by no other than Mahathir, he will put our country on the world map again.

This man will never fail us. Approaching 93 years old, and at the pace he going right now, there are no PMs, presidents or kings in this whole wide world who can compete with his eagerness to bring back Malaysia to its former self.

And I believe he will succeed and achieve his dreams.

Anonymous849cf4feee: The report says, “Of significance, oil prices have been higher than the US$52 per barrel estimated for Budget 2018. This provides fiscal buffers for the immediate future.”

In other words, the government has had a significant increase in revenue.

These researchers need to research further on this statement which was released by the Finance Ministry under Mahathir's administration.

Nil Timbadia: GST accounted for 20% and SST for 8% of government tax revenue, so that is a 12% difference.

However, petroleum revenue increase has not been accounted for here. Also, the Harapan government has plans to cut government expenditure, and I am sure the new PM who wears RM12 Bata shoes does not need to buy Birkin handbags for his wife.

4 Wheel Drive: With the previous government of Malaysia hell-bent on wastage, corruption and mismanagement, it's amazing that the country cannot do better now when such problems are being tackled.

At least, there is now a feel-good factor within the rakyat, when under the previous administration there was only doom and gloom.

Business should benefit from the brighter outlook, leading to increased profits and an increase in tax payable.

It is likely all this will take some time to filter through, but at least there's now hope when previously, there was none.

Ferdtan: Let us keep this "think tank BMI Research" in mind when the new government manages to turn around the economy.

All of the mainstream think-tank agencies, even the well-known overseas fund managers, were completely wrong in predicting who would win the recent election.

So as to what all these naysayers say now and have said before, we tell them, go and research with an unbiased mind, with hard work thrown in. Don't take the easy way out.

Now I enjoy laughing at my friends who kept saying BN, being the incumbent at the time, would never lose.

And I don't feel guilty for gloating at them; this, after all, can only happen once in a lifetime.

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