YOURSAY | 'Khaled Nordin thinks it’s okay to overburden the people to fund corruption.'
Khaled: World Bank has called Harapan's bluff
Fernz: The World Bank did not call Pakatan Harapan's so-called bluff. Government guarantees were issued for dubious loans. That has added to the national debt burden. The RM1 trillion-plus figure is correct and amounts to 80 percent of GDP.
Who is going to pay for the dubious loans? That's the question to consider. Don't look at half the story and say the national debt burden is 55 percent of GDP.
In fact, even the national debt burden is not an issue, given Malaysia's ability and willingness to pay. The issue is dubious loans.
Non-Evader: We, the people, want our government to tell us all its liabilities, hidden or unhidden. As for how these liabilities are conveyed to international bodies, we don't quite care, as long as it allows the government to borrow at the lowest interest rate.
So, Harapan government, please go ahead and use the cleverest method to impress the foreigners that we have zero debt, if that's what they want to hear, but don't try to sugar-coat it when you convey those numbers to us.
Not Convinced: Non-Evader has pointed out the problem. Foreigners are not stupid. They have access to the same information given to Malaysians.
Change for the Better: Just because the debt is in Malaysian ringgit does not mean it's not debt. It still needs to be paid. The only difference is that it does not carry exchange risk which could work in your favour or against you.
On the second point about the tenor, it's about the government’s ability to refinance/rollover the debt. Actually because of clean government, transparency and rule of law the chances of refinancing actually improve.
In fact, with the BN and the corruption and lies and cheating, there is no guarantee we would have got refinancing and if so, at favourable rates.
The Harapan government had clearly stated previously that the Tabung Harapan Malaysia cannot and is not aimed at paying the debt. Umno vice-president Mohamed Khaled Nordin, don't try and muddy the waters which was the typical style used by Umno.
Last but not least, I note that you conveniently omitted to mention the increase in government-guaranteed debts by the previous regime.
Malaysian-United: Yes, debt is debt. No matter how it's denominated, debts have to be repaid/serviced. Too much debt is no good, especially when government deficits are widening and more taxes need to be introduced to meet the shortfall.
Khaled may think it is okay to overburden the people just to fund the leakages and corruption. But we have had enough.
Gulengtu: As mention by the Finance Ministry, the contingent liabilities are off-balance sheet items but these contingent liabilities are no longer contingent once the ministry as a guarantor assumed the GLCs (government-linked companies) debts and start servicing their respective repayments.
Similar to a commercial bank when issuing bank guarantee to a third party on behalf of the customer, initially it is disclosed as a contingent liability.
However, when the customer fails to discharge its obligation, the third party has a recourse on the bank which then take the necessary action against its customer. The contingent liability is now crystallised into a debt.
The relationship between the Finance Ministry as a guarantor and GLC is no different to that of a bank and its customer.
FairMalaysian: A liability is a liability, be it a short-term or long-term, or even if it is a contingent liability. Even when a government provides a guarantee, that should be taken into account.
The approach of the World Bank or International Monetary Fund (IMF) may be different and comparing a government's approach with theirs shows the lack of understanding on how lenders approach/handle debt, as opposed to a government.
A responsible government that holds the trust of the rakyat will have to take into account all liabilities and commitments, unless people like Khaled believe that it is best to scramble when a contingent liability crystallises, instead of being prepared for any commitment.
Drngsc: Khaled, you are quoting selectively. This is another World Bank report, and I quote, “The World Bank’s June 2018 edition of the Malaysia Economic Monitor noted that increased loan guarantees for large-scale infrastructure projects were a crucial contributing factor towards the country's growing contingent liabilities."
Our liabilities are growing and growing. It only stopped growing following the May 9 election.
The Wakandan: The rakyat do not particularly care about debt as most of them do not understand it. What they understand is something said, if it is black it should be black, and white should be white.
1MDB, for example, should have been self-sufficient with its generated income but it is revealed that the government has to pay billions of ringgit to support its debts.
The payment was hidden by Najib as the finance minister, where he lied about 1MDB being able to sustain its loan repayments. This is perhaps more important and something the rakyat can see tangibly.
The other practical aspects that affect the rakyat's lives are the value of the ringgit and the ability to put food on the table, which has become more and more difficult.
This all happened when Najib was the prime minister and is something he cannot deny.
KnockKnock: I am a father and I tell my children that my credit cards are almost to the limit so please be wise enough in our daily expenditure.
One of the rascals in the family rushed to the banker and asked about the situation of my credit loan. The banker says, I think your father is bluffing you because he has been with us for more than 70 years yet he has never defaulted in his payments.
Now, the question is: Does the World Bank ever realised that the previous government forced its own people to pay GST to maintain its money flow as well to keep red files in the Finance Ministry for a simple stupid reason - to please the World Bank, in particular, and maintain the Umno/PM's good name?
Cogito Ergo Sum: The economists can say what they like. We on the ground feel the crunch when the time comes to pay the bills and put food on the table.
Khaled, we threw you and your kleptocratic government out. We will continue to let Harapan undo the damage you had wreaked on our lives.
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