The 2011 Auditor-General's report shows that the debt percentage to Malaysia's GDP is shrinking, largely due to the GDP increase.
PETALING JAYA: Malaysia’s national debt is at its highest yet: at a whopping RM456.12 billion, according to the 2011 Auditor-General’s report.
It is a RM49.02 billion (12%) increase from 2010′s figure (RM407.1b) and 51.77% of the country’s RM881.08 billion Gross Domestic Product (GDP).
In comparison, 2011′s debt percentage of the national GDP was lower (2010 recorded 53.15%).
This might be due to the RM115.1 billion increase in GDP, of which a total of RM765.9 billion was recorded in 2010.
According to the report, about RM438.02 billion of Malaysia’s national debt was local while the remaining RM18.1 billion was foreign.
The country also appeared to be spending more this year due to its rising debt. The report said that 2011′s expenditure due to the debt was RM17.72 billion, from 2010′s RM15.62 billion.
At the same time, the country’s deficit was shown to have reduced to 2008 levels, recorded at RM42.5 billion of the GDP, or 4.82%.
In 2008, Malaysia’s GDP stood at RM740.72 billion, with a deficit of RM35.57, or 4.8%.
Last year’s deficit was also lower than 2010 and 2009 numbers, which were at RM43.24b (5.64%) and RM47.42b (7.03%).
These numbers were despite a 16.1% increase in government revenue, which saw Putrajaya collecting an estimated RM185.42 billion, compared to 2010′s 159.65 billion.
The report said that efforts to control 2011′s deficit were due to foreign and local loans, which the Auditor-General’s Department said, grew by as much as RM36.33 billion last year, or a total of 113.56 billion.
In 2011, the government had a total of RM107.09 billion in local loans, with RM6.47 billion in foreign loans.
The report added that the government also had a higher loan repayment in 2011, at about RM65.35 billion, or RM33.52 billion from 2010.
Patrick Lee
Gov has to looking for strategies how to decrease the debt
ReplyDeletethe government has no problems in repaying its debts
Deleteif these continous,malaysia will be down at heel
ReplyDeletegovernment aims to reduce the deficit in this budget as was done in previous budgets
DeleteDalam keghairahan pembangkang menabur janji bagi menarik sokongan menerusi potongan cukai, menurunkan harga bahan bakar, menghapuskan pinjaman PTPTN, menyediakan pendidikan tinggi percuma, sedar-sedar kosnya sudah mencecah hampir RM200 bilion, jumlah yang boleh membankrapkan negara.
ReplyDeleteSejak menghadapi pilihan raya umum 2008, pembangkang juga turut berjanji mahu mengambil alih konsesi lebuh raya dan menghapuskan tol; menaikkan royalti minyak untuk Sabah dan Sarawak sebanyak 20 peratus; menurunkan harga kereta menerusi penurunan cukai import, dan pemberian tunai bagi memastikan pendapatan isi rumah minimum RM4,000.
ReplyDeletemcm2 janji pembangkang, tapi kita jgn mudah percaya.
DeleteBudget 2013 was drawn up based on three basic parameters government revenue must be more than expenditure, fiscal deficit must be reduced and debt to gross domestic product ratio has to be maintained below 55%
ReplyDeletedebt to GDP ratio below 55% was the prudent level
DeleteFederal Government’s fiscal deficit for this year is projected to slide to 4.7%
DeletePerdana Menteri Datuk Seri Najib Tun Razak berkata kerajaan akan memastikan had hutang Malaysia tidak melebihi 55 peratus daripada Keluaran Dalam Negara Kasar (KDNK), sebagai strategi pengurusan berhemat dalam mengurus kewangan negara.
ReplyDeleteKalau BN masih kerajaan, hutang negara akan naik ke tahap bankrupsi tidak lama lagi.
ReplyDeleteA growing deficit spells trouble for malaysia
ReplyDeleteWestern countries have much to learn from Asia as the latter has been through its own crisis back in 1997, according to International Monetary Fund (IMF) managing director Christine Lagarde.
ReplyDelete
DeleteIn a lecture entitled "Asia and the Promise of Economic Cooperation", Lagarde said Asia had risen from the Asian financial crisis stronger and more resilient on the back of sound macroeconomic and structural policies.
"Since the Asian crisis, corporate debt-equity ratios have fallen by two-thirds. Financial leverage and reliance on foreign funding are also lower. The ratio of short-term foreign debt to official reserves, a key indicator of external vunerability, fell by a third or more," she added, citing that both public and private sector finances had been managed well.
DeleteShe said that Asia was still open to the world and open for business.
Delete"These are important lessons for the advanced economies who are facing severe challenges now," she said.
Delete
DeleteLagarde noted that American policymakers must avoid the "fiscal cliff".
Delete"If expiring tax provisions and spending cuts were indeed to come into play, growth in the US would fall to zero or below and the rest of the world will not be immune. This policy uncertainty must be resolved and it will require all sides coming together.
Delete"The eurozone, which is still facing a crisis, must also deliver on its policy commitments at the national and regional level fiscally, financially and structurally. And again, all players must play their part," she said yesterday.
She urged the United States and Europe to take action, as they had a "special responsibility to act".
DeleteOn another note, she said countries were able to cooperate and collaborate with each other at the regional and global level, and via the IMF.
Delete
DeleteA regional example of Asean countries' commitment to deeper cooperation is the Chiang Mai Initiative Multilateralisation (CMIM), which is a regional financial safety net of growing importance within the global financial system.
It was designed to provide short-term liquidity support arrangement for Asean+3 member countries during a financial crisis.
DeleteThe CMIM is an initiative that is a self-managed reserve pooling arrangement by member countries, governed by a single agreement.
Delete"At the global level, Asia has a major and highly-respected voice in global economic governance, including through the G20 where it has six members," she said.
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DeleteThe Malaysian Economic Association and Malaysia's central bank -Bank Negara - hosted Lagarde's visit to Malaysia.