Friday, 11 June 2010

A Bankrupt Nation

By Dr Lim Teck Ghee

Readers following the great national debate initiated by Minister Idris Jala in the Prime Minister’s Department on the possibility of the country going bankrupt must be thoroughly confused with the mixed messages from government.

On the one hand, we are told that the country is more prosperous than ever before and that absolute poverty in the country, for example, is almost completely eradicated. We are also told that the country’s economy is in good hands and that the finances of the country are well-managed.

Every few days or so, we are reminded of how fortunate we are to be living in Malaysia and how much foreign investors love us. Just a short while ago, it was trumpeted that our competitiveness had shot up this past year so that we are now ranked number ten in the world – ahead of many advanced economies.

We regularly receive a barrage of statistics and data on not only how well the economy is performing but also how, thanks to the outstanding economic management of the government, we will soon reach dizzier heights of prosperity and affluence.

Read the whole article HERE

When we don't wake up to reality, then reality has a way of waking us up.

For all those Malaysians who believed that we socio-political activists should not rock the boat, may poverty and bankruptcy bode you well.


Antares said...

There have been no follow-up reports to CIMB's RM8.5 billion worth of NPLs. It always amuses me how bankers call uncollectable debts "non-performing loans." Sounds like a gaggle of joget girls all dressed up - and nobody to dance with. The truth is, all these "NPLs" translate as a bunch of Bumoid Umnoputras being given carte blanche to rob the banks legally.

donplaypuks® said...

Sorry Antares, NPL's are not quite uncollectable.

Internationally, they have agreed to classify any debt unserviced for more than 3 months as an NPL. Often, these recalcitrants will start paying up after receiving a couple of legal letters. Also, many banks tend to bundle these NPL's and sell them off at a discount to REPO specialists. I think CIMB did that with about $2b of these NPL's.

But %8.5 billion is something to shudder about.

we are all of 1 race, the Human Race