News – Malaysia’s debt still manageable, says Idris Jala

When we’re small, our parents were our main source of reference both from their action and inaction. In a bigger sense, government is our big parent, or big brother. What they do, most of us follow although what come from their mouth not always the same as what they actually do. When their action contradict their statement, they still can “buat deek…”. Not an apology came from their filthy mouth!

“We borrow for investments (aiming) to grow our GDP and economy. The debt level will directly reduce. Unlike Greece, they are borrowing a lot of money but the economy is shrinking,” he added.

One of the no-no thing in investment is borrowing money to invest. Investing is already a risky business. Using borrowed money only increase the risk multiple time!

 

He said the 53.8 per cent of national debt for last year is within the range as the government continues its efforts to bring down the fiscal deficit level.

“With the implementation of the Economic Transformation Programme, we are on the right trajectory and continue to reduce the deficit level every year. For 2012, we aim to narrow further the fiscal deficit to 4.7 per cent from 5.0 per cent of last year’s GDP,” he told the media on the sidelines of the GTP Roadmap 2.0 Open Day here on Tuesday.

Citing the Mass Rapid Transit project, Idris said though the government had to raise funds for the project, it still managed to keep the debt level below 55 per cent.

“We borrow for investments (aiming) to grow our GDP and economy. The debt level will directly reduce. Unlike Greece, they are borrowing a lot of money but the economy is shrinking,” he added.

Idris, who is also the Chief Executive Officer of the Performance Management and Delivery Unit (PEMANDU), said Malaysia’s GDP at 4.7 per cent in the first quarter was still growing, whereas Singapore’s only grew at 1.4 per cent, due to the slowdown in the global economy.

“This is good…with more investments coming in and positive indicators, going forward,” he added.

 

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