Janji Ditepati and national debt

By Lee Wee Tak

 

PART I : ORTHODOX NATIONAL DEBTS

A quick look at the Ministry of Finance (MoF) annual statistics shows the following:
  • From 2007 to 2011, the GDP increased on average, 6.4% a year and between the years, our GDP increased by 28.2%
  • During the same time, external borrowings increased  on average 8.2% a year and between the years, our external debts increased by 37.2%
  • During the same time, Hutang Dalam Negeri Persekutuan increased on average 15.2% a year and between the years, our HDNP increased by 77.22%!
In short, as much as Najib praised Malaysians for being hardworking; his administration works much harder at incurring debts. Tell me who should be bersyukur?
The last 2 quarterly reports for 2011 from MoF repeat the same thing – high portion of operating expenses: 79.5% for Q3 2011 and 74.1% for Q4 2011. (this high ratio means opex eating away development expenditure for the nation)

Opex comprise chiefly of
  • fuel subsidy (result of Mahathir’s Proton first policy, exposing Malaysians to uncontrollable oil price trend,tormenting traffic jam and substandard public transport system) and;
  • civil servants remuneration where an overstuffed civil service keep getting increment and bonuses without corresponding improvement in performance, testament of the success rate of BN’s 50 years old education system in producing a viable work force.