Are We Going to Bankrupt?

Now, who is right who is wrong? Are they knowing what they are talking about?

First of all, I am not economist. I do not know whether we are going to bankrupt in 9 years time as explained by Idris Jala or we are still in good shape and no risk of bankruptcy as mentioned by Najib Razak. The concern is, why can it be so simply when they announce something?

Who should we trust now?

Let see what had happened.

It was on 27 May, Bernama reported that ‘Our deficit rose to a record high of RM74 billion last year, and the nation could go bankrupt by 2019 with debts totalling RM1.158 trillion.’  That was announced by Minister in the Prime Minister’s Department, Datuk Seri Idris Jala.

Then what had happen? Together in the same speech, Idris had said that we need to rationalize our subsidy in order to reduce deficit and to avoid the said bankrupt situation.

And yesterday, 8 June, Bernama again reported that ‘Malaysia will not go bankrupt like Iceland and Greece following the nation’s success in maintaining its debts level under control and prudent measures taken to reduce debt rate, Prime Minister Datuk Seri Najib Tun Razak told the Dewan Rakyat."’

What a magic. We turn the economy around in less than 2 weeks time.

So what is our current financial standing then?

From a layman understanding, I suspect that:

1. At first, the ‘bankruptcy’ talk was a try to convince the people that we have to accept the fact that government need to reduce subsidy for us.

2. Unexpectedly too much objection to the statement above especially voices said why cut subsidy for people instead of reduce wastage in non productive projects and corruption?

3. People start to blame BN poor administration that has cause the problem and eventually putting people into suffer.

3. It must be too much of pressured felt by Najib and due to worry of losing votes, he have to deny the statement by coming out some other statements.

Conclusion: they do not know where we are now and do not know how to continue administer the economy effectively. All we see our government currently doing is ‘test water’ and react to the situation, not proactively control it.

PS: If we are so in deep shxt, why the hess we plan to spend money on building a new Parliament building, now (Bernama, June 9)? Is that really necessary? Weren’t we just spent quite a big buck to renovate the existing premise some years ago?