Posts Tagged ‘Govt Debt

22
Sep
14

1MDB’s RM30bil debt a threat to us

Rafizi: 1MDB’s RM30bil debt a threat to us

The more than RM30 billion debt said to have been incurred by 1Malaysia Development Bhd (1MDB) will pose a threat to Malaysia’s economic stability and the well-being of the people, says PKR’s MP for Pandan Rafizi Ramli.

Rafizi, a PKR vice-president, said he seldom agrees with former prime minister Dr Mahathir Mohamad, but this time he agrees with Mahathir’s concern and criticism on this point on the debts of 1MDB.

“I support the stand and views taken by Mahathir on 1MDB. I am of the view that 1MDB’s finances and management, which are not transparent, may pose a threat to the economic stability and well-being of the people,” Rafizi said in a statement.

In his blog Chedet posting yesterday, Mahathir expressed concern that Malaysia would not be able to repay the debts accumulated by 1MDB.

Rafizi said reports obtained from financial documents have placed 1MDB’s debt at more than RM30 billion and this was based on a series of bonds issued to collect funds, that were done several years ago.

In past Parliament sessions, he said, Pakatan Rakyat lawmakers have posed several questions on the RM30 billion debt, which is guaranteed by the government.

“Every time this question was posed, Prime Minister Najib Abdul Razak, who is also finance minister, has consistently said it was just RM5 billion from the issuance of the first 1MDB bonds. He gave his official answer in Parliament that other debts are not guaranteed by the Malaysian government.

“I have documents to verify that what Najib answered is incorrect as this gives the wrong impression to Parliament. My investigation shows the whole debt by 1MDB amounts to RM30 billion and that it is borne wholly by the government,” Rafizi said.

This, he added, meant that if 1MDB failed to repay the debt, the government would be responsible for the repayment, and that this would certainly entail the use of public funds.

“Hence, my stand is that 1MDB’s big debt could pose a threat to the economy as there is no indication of its performance showed by the company. I believe Mahathir has the same information, and he could not hide his concern,” Rafizi (right) said.

…more
Sep 11, 2014 – Malaysiakini
Rafizi: 1MDB’s RM30bil debt a threat to us

14
Mar
14

1MDB’s ‘fantastic’ investment strategy?

MP SPEAKS After the expose I made last week with regards to the change of auditors for 1MDB, the company has confirmed in its statement on Feb 21 that it had appointed Deloitte, a Big 4 accounting firm, to complete the audit for the year ended March 31, 2013, saying this was done after “it was mutually agreed with KPMG that the firm would cease to be 1MDB’s auditors”.

Contrary to being accused of a suspicious move, 1MDB argued that, “This is nothing special or new as it is in line with best market practice where companies decide on its current or future auditors after considering all aspects, including – but not limited to – conflict of interests and other considerations”.

1MDB could not be more wrong, or we could perhaps forgive its management of attempting to make light of a very bad situation. There is no “best practice” in this world which says that it is perfectly normal to suddenly change auditors long after the accounts were overdue. Had the change been made well before the end of 1MDB financial year March 2013, there would have been little for us to question the company.

However, when the accounts are significantly delayed by nearly a year, and the auditor quits before it gets finalised, then surely every rakyat has the right to ask for an honest explanation. For example, why couldn’t the change of auditors be done only for the March 2014 accounts?

The irony is, The Star reported on Aug 2, 2012 that Deloitte managing partner Tan Theng Hooi himself cited that the “failure to release financials on time is not acceptable and may indicate there could be unresolved accounting, management, or other issues in hand”, when criticising public listed companies for late publication of financial statements.

In Malaysia, as well as in countries like the United States, public listed companies are given only six to eight weeks to report their quarterly accounts. While 1MDB isn’t a listed company, it is a sovereign wealth fund which is of even greater public importance, and it is only required to file its reports once a year! And yet, despite the appointment of KPMG, a top international accounting firm, it is overdue on its financial report by nearly a year.

1MDB gave the excuse that “its new business direction has helped it grown exponentially, requiring consolidation of new subsidiaries into the group” and hence, the delay in its accounts.

The excuse does not hold water because its acquisitions were not any more complicated than many carried out by some of our largest companies on the stock exchange – such as the Sime Darby acquisition of Guthrie and Golden Hope Plantations. And yet, these companies were able to finalise their accounts in a time manner in accordance to the stringent rules set by Bursa Malaysia.

‘1MDB’s investment makes no sense’

In the same Feb 21 response to my earlier criticisms, 1MDB also defended its mysterious US$2.32 billion “investment” in Cayman Islands.

1MDB said it had “invested the proceeds with regulated and licensed international fund managers. These fund managers adopt an absolute return strategy of which the primary investment objective is to achieve long-term capital appreciation and/or steady income through investments in listed and/or unlisted companies”.

“A total of US$200 million (RM658.9 million) has been remitted from the fund to the 1MDB group in Malaysia to service repayment. Out of this, US$134 million (RM430 million) is from the 5.76 percent cash dividend generated within the first year of the investment period.”

I’d like to thank 1MDB for highlighting the fact that it has received a 5.76 percent return in its first year of investment in the unnamed Cayman Island fund manager. Under normal circumstances, the 5.76 percent return may look acceptable, albeit a little mediocre. However, these are not normal circumstances.

The reason why the US$2.32 billion was invested in Cayman Islands in the first place is because 1MDB terminated and redeemed its 11-year loan to Petrosaudi International Limited in 2012, when the multi-part loans were to mostly mature in the year 2021. The loan to Petrosaudi, in the form of “Murabaha notes” commanded a guaranteed fixed interest (“profit rate”) of 8.67 percent per annum.

Hence it must be asked, why did 1MDB redeem its loan earning a guaranteed fixed return of 8.67 percent and invest in a fund manager in Cayman Islands which it refuses to name, giving a return of only 5.76 percent? Does that make any financial sense?

However, even if we were to ignore the fact that the Murabaha notes were paying a very profitable 8.67 percent, it must be reminded that 1MDB borrowed all the money used to make the above investments.

The bulk of 1MDB’s borrowings for the above investments were raised in 2009 via an Islamic loan facility, sukuk, where 1MDB had to pay 5.75 percent interest (“coupon rate”).

In layman’s terms, this means that 1MDB is borrowing money at 5.75 percent interest to invest in an anonymous Cayman Islands fund which gave a return of 5.76 percent! Does that make any financial sense?

…more
Feb 24, 2014 – Malaysiakini
1MDB’s ‘fantastic’ investment strategy?

15
Nov
13

Ballooning debt of gov’t-linked firms a time bomb

MP SPEAKS The BN government will surely play up the fact that it is a prudent government that is managing its finances well, with its projection in Budget 2014 that the annually growing budget deficit will be reduced to RM37 billion or 3.5% of GDP in 2014.

However, this ignores an extremely worrying problem of a huge increase in the deficit position of the companies that are owned or controlled by the government and statutory bodies – or non-financial public enterprises (NFPEs).

For 2013, the projected deficit is RM93 billion or a massive 9.4 percent of the GDP. This represents a six-fold increase from the R15.6 billion deficit recorded in 2012.

The NFPEs refer to 30 “government-owned and/or government-controlled companies and agencies owned by the government”, whereby “ownership and control refer to government or a public sector agency controlling more than 50 percent of total equity”.

These would include companies such as Petronas, Tenaga Nasional Bhd, Telekom Malaysia Bhd, Axiata Bhd, Malaysia Airlines, UEM Group as well as more recent additions such as 1MDB, Prasarana and MRT Co.

The financial positions of these companies affect the fiscal position of the government directly and indirectly. These companies contribute directly to government coffers by paying corporate taxes (and the petroleum tax by Petronas), as well as dividends.

They (or via special purpose vehicles related to them) also issue bonds that carry an explicit as well as an implicit government guarantee, that is, the government has to pay for these bonds if these companies run into financial trouble (think PKFZ).

Financial Position of the Non-Financial Public Enterprises (NFPEs)

What is shocking about the figures in Table 1 is that the deficit position of the NFPEs, which have been in surplus for 2010 and 2011, is projected to reach RM93 billion in 2013!

…more
Ballooning debt of gov’t-linked firms a time bomb
Ong Kian Ming
Oct 26, 2013 – Malaysiakini

27
Oct
13

Bridge over troubled waters

Straits project a bridge too far?

KINIBIZ Economists are questioning the economic viability of building a bridge from Teluk Gong in Malacca with the port of Dumai in Sumatra across the Straits of Malacca, after it emerged that the plan which was first mooted in 1995, could be revived.

“While there is no specific feasibility studies to reference, available data in terms of population size, economic capacity of the Indonesian people in the Dumai area and the prospect of substantial capital investment, makes the project’s viability quite questionable,” said RAM Holdings group chief economist Yeah Kim Leng.

The project was first suggested in the mid-nineties, under then prime minister Dr Mathathir Mohamad, but shelved when the Asian Financial Crises hit. In the later years of the 2000s, the project came up every once in awhile; in 2006 and again in 2009 then Malacca chief minister Ali Rustam broached the subject, but again it never took off.

It is estimated that the 48km plus bridge from Teluk Gong in Malacca to Pulau Rupat (the closest connecting point) will cost approximately RM44.3 billion, and at this length is will be the longest sea crossing in the world. From there, a 71.2km highway across Pulau Rupat will connect the bridge with the port city of Dumai.

Yeah highlighted that funding the project will be a major issue, as either public or private investment will come with its own set of concerns.

Although the Export-Import Bank of China (EXIM), have indicated in the past that it would be willing to invest substantially in the project, Yeah says that the are still long-term cost issues. He notes “even if the EXIM bank funded the project, there is the issue of repayment, which will be substantial … is there really a sufficient amount of traffic to be able to pay it off and at what rate (toll rate)? … it is likely that the governments will have to step in to top it up (repayment costs).”

In the event, that the government decides to fund the project, then the question shifts to the multiplier effects to make it worthwhile, said Yeah. He questions if there are better projects to spend the money on, especially in view of the government’s recent announcements that it will be sequencing mega projects, to prioritise those with high multiplier effects and low import content.

…more
Straits project a bridge too far?
Stephanie Jacob, KiniBiz
Oct 17, 2013 – Malaysiakini

 

Bridge to Dumai: Don’t jump (for joy) too soon

Malacca-Dumai Bridge project could increase the national debt level and a cost-benefit analysis should be done first, said CIMB chief economist Lee Heng Guie.

UPDATED

PETALING JAYA: The federal and Malacca state governments should consider the current economic situation and debt problem before undertaking the Malacca-Dumai bridge project across the Straits of Malacca, said CIMB chief economist Lee Heng Guie.

Lee said the government should conduct a thorough cost-benefit analysis before it carrying such a mega-project.

He said it would be an extra burden for the government to contain the increasing national debt because work on the Mass Rapid Transit project had already started.

The chief economist suggested revamping the public transportation system in the country before thinking of a bridge to connect Indonesia.

The 48.69km bridge, crossing one of the busiest international shipping waterway, would be the world’s longest, even without including a 71.2km-long highway to be built between Dumai and Pulau Rupat.

The idea to build the bridge was first mooted in 1995 to increase economic opportunities between Malaysia and Indonesia but halted during the Asian financial crisis in 1997.

Strait of Malacca Partners Sdn Bhd owner Lim Sue Beng had already done a feasibility study on the bridge and presented a paper at the 8th Asean Leadership Forum at Hotel Nikko in Jakarta in May 2011.

The company also appointed the Hunan Provincial Communications Planning, Survey & Design Institute of China to prepare the bridge design.

The project was again discussed during the 10th Chief Ministers and Governors’ Forum (CMGF) of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) held in Koh Samui, Thailand, on Sept 12.

Among the matters discussed was the economic potential and strategic positioning of the IMT-GT with the construction of the bridge.

It has been reported that the Export-Import (Exim) Bank of China had agreed to finance 85% of the bridge’s cost of about RM44.3billion.

Economically challenging

RAM chief economist Dr Yeah Kim Leng said the project would be economically challenging due to its high cost.

Dr Yeah said even though the project could be implemented through a public-private partnership approach, at the end of the day the financing burden would fall on the government.

“This will indirectly involve taxpayers’ money which should be used for projects to benefit the public,” he said.

Dr Yeah said the government should look into the debt level and budget deficit before thinking of mega projects.

Civil engineering expert Prof Andrew Chan from the University of Nottingham (Malaysia campus) said technically it is feasible to build the bridge but questioned whether there is a demand for such a mega-project.

He added that there were some highways built without public demand and the government should conduct a study to show that the project benefited the public.

…more
Bridge to Dumai: Don’t jump (for joy) too soon
P Ramani
October 17, 2013 – FMT

 

The proposed Strait of Malacca bridge: Linking or breaking the region?

Plans have been mooted to construct a bridge to link the Indonesian port-city of Dumai in the Sumatran province of Riau with Malacca. This bridge will obviously result to any of these two circumstances; linking or breaking the region.

Another issue which arises is whether the bridge could really foster economic benefits for both countries. Would the level of cost involved in constructing the bridge be justified by subsequent usage?

The cost of constructing the bridge would result in high debt liabilities for both Malaysia and Indonesia which would be passed on to bridge users in higher tolls. In contrast to the Oresund Bridge in the Scandinavian region, both Malaysia and Indonesia are developing States and do not enjoy the relatively high standards of living of Scandinavia.

If the toll imposed on the bridge is too expensive, the public at large may refrain from using it and may revert to using ferries and boats to cross the Strait of Malacca.

In terms of tourism, the bridge may attract more tourists into both countries but this cannot be guaranteed. With the tropical weather conditions which are common in both Malaysia and Indonesia, thunder storms are a natural phenomenon in the evening. Driving across the Strait would be dangerous in this type of weather.

If there is not much vehicle traffic on the bridge, drivers may likely then be exposed to hijacking and other criminal activities like highway robberies and carjacking. The substantial length of the bridge which is likely to be up to 127.92km would make it difficult for the authorities to maintain the safety and security of drivers.

Malacca on the Malaysian side is a strategic site for the bridge as Malacca and other major cities in Malaysia including Kuala Lumpur, Putrajaya, Johor Bahru and neighbouring Singapore are not too far away from Malacca.

These cities are served with good highway connections that link them to the city of Malacca. However, Dumai is not a similarly strategic site on the Indonesian side as it only has a relatively small population of around 215,789 in 2008, is not a major city in Indonesia and is distant from other main Indonesian cities like Jakarta, Bandung, Surabaya, Medan, Palembang and Padang.

Dumai is not served with a good network of expressways connecting it with these other cities. The proposed bridge plan would only be practically viable if it connects Malacca with another major city or cities in Indonesia, particularly Jakarta.

With the emergence of many budget airlines like Air Asia, Sriwijaya Air and Lion Air in the region that provide affordable flight services, flying is likely to be the preferred method of transportation. Jakarta, the capital city of Indonesia is approximately 1063 kms away from Dumai.

So, it would be more practical for Indonesians that reside in Jakarta or other parts of Java, wishing to come to Malaysia to fly directly to Kuala Lumpur instead of driving a long way to Dumai to use the bridge. For Malaysians that intend to go to Sumatra or Java, flying would be the preferred option over using the bridge as it is a cheaper mode of transportation and not as time consuming.

Conclusion

Taking these considerations into account, having a bridge connection between Malacca and Dumai is not likely to boost economic growth between the two nations. It could also be seen as a potential major navigational hazard for international shipping traffic transiting the Strait of Malacca as raising the likelihood of maritime accidents and marine pollution. For now, it is not entirely viable to have the bridge, not just yet. – September 24, 2013.

– Mohd Hazmi and Wan Izatul Asma

…more
The proposed Strait of Malacca bridge: Linking or breaking the region? – Mohd Hazmi and Wan Izatul Asma
September 24, 2013 – TMI

 

Malacca-Dumai bridge: More questions raised

Building bridges must have value-added purpose, not a competition for Book of Records listing.

PETALING JAYA: The idea to have a bridge connecting Malacca to Dumai in Sumatra, and achieving the title of longest suspension bridge in the world, receives a not ‘too glowing’ appraisal from a local structural expert.

Structure expert Cheong C Kwong who has over 30 years experience in bridge structures, gave FMT his expert views on bridge designs.

According to Cheong, the Straits of Malacca has a deep sea bed that requires to be studied before embarking on such a mega project.

“Before we can ever think on having a suspension bridge, the consultants need to carry out a ‘feasibility reconnaissance’ on the Straits of Malacca,” said Cheong.

The feasibility reconnaissance is to assist in determining whether an intended plan can eventually be implemented and development can proceed. The study will be able to determine the optimum point for a bridge span (length).

“In usual practise, the engineers will look for an optimum point from one end to another which means that the bridge will have the right span to hold the design,” said Cheong.

He added that when constructing bridges, engineers look for the shortest and optimum span (length) for a bridge, and not to compete for records such as building the longest bridge in the world.

According to Cheong, other factors to look into before constructing bridges is the pier (support) design for the bridge, how the pier will be supported and other dynamics of the bridge structure.

The reason behind why the bridge from Malacca to Dumai has to be a suspension bridge is because of the longer span (length) from one point to another, he explained.

He pointed out that the first and second Penang bridges were constructed using the ‘cable-stayed’ concept. A cable-stayed bridge has one or more towers (or pylons), from which cables support the bridge deck.

“To have [a] suspension bridge it will be very costly compared to [a] cable-stayed bridge,” he added.

Other poor factors

The structural expert commented that when constructing bridges, there should be some purpose and economic returns. He questions the valid economic returns to be benefited in having a bridge between Malacca and Dumai.

To him, he did not see any economic returns, apart from the hefty cost to construct the bridge.

Secondly, the structure expert believes that weather conditions will not permit the development of such a bridge.

“The engineers need to consider all the possibilities to have a strong support if an earthquake or tsunami takes place,” he said.

“Not only earthquakes, haze also impairs the vision and how are drivers able to see the road ahead,” he said.

Another technical point to be considered is that the height of the bridge is expected to be 76 metres above sea level and the bridge designers have proposed a ‘one-way single ship’ and ‘one-way double ship’ channel to pass under the bridge.

One way single and double ship is the pathway for ships to travel under the bridge.

He stated that the proposed 76m will not be an optimum if large or cruise ships were to pass under the bridge.

The structure expert also questioned as to who will control sea traffic management considering that the Straits of Malacca is known for it’s busy waters.

“This will surely create a traffic congestion on the sea,” he added.

…more
Malacca-Dumai bridge: More questions raised
P Ramani
October 24, 2013 – FMT

25
Oct
13

High debt, rising interest rates could pop Malaysia’s economic bubble

Malaysia’s economic bubble will burst after China’s economy takes a tumble and global and local interest rates continue to rise, warned financial analyst Jesse Colombo in the Forbes online magazine yesterday.

Colombo, credited by the London Times for predicting the global financial crisis, noted that Malaysia’s high government and household debt is contributing to the credit bubble.

“Malaysia’s bubble will most likely pop when China’s economic bubble pops and/or as global and local interest rates continue to rise, which are what caused the country’s credit and asset bubble in the first place,” he wrote in the Forbes article headlined “Malaise Is Ahead For Malaysia’s Bubble Economy”.

“The resumption of the US Federal Reserve’s QE taper plans may put pressure on Malaysia’s financial markets in the near future. Malaysia’s rapidly deteriorating current account surplus due to weaker exports is another worrisome development,” Colombo added.

The financial analyst based in New York warned that the coming economic crisis could be far worse than the 1997 Asian Financial Crisis as more countries would be affected due to weak global economy.

“As I’ve been saying even before this summer’s EM panic, I expect the ultimate popping of the emerging markets bubble to cause another crisis that is similar to the 1997 Asian Financial Crisis, and there is a strong chance that it will be even worse this time due to the fact that more countries are involved (Latin America, China, and Africa), and because the global economy is in a far weaker state now than it was during the heady days of the late-1990s,” he said.

Colombo said the emerging markets bubble began in 2009 after China pursued an aggressive credit-driven, infrastructure-based growth strategy to bolster its economy during the global financial crisis.

He noted that rock-bottom interest rates in the United States, Europe, and Japan, combined with the Federal Reserve’s multi-trillion dollar quantitative easing programmes encouraged a $4 trillion (RM12.7 trillion) torrent of speculative “hot money” to flow into emerging market investments over the past four years.

Colombo also said surging capital inflows into Malaysia after the Crash of 2008 caused the ringgit currency to rise 25% against the US dollar in just two years and foreign holdings of ringgit-denominated bonds hit an all-time high.

Malaysia’s $303 billion (RM964 billion) economy grew at an average 6% in recent years due in large part to a growing government and household credit bubble and its public debt-to-Gross Domestic Product (GDP) ratio has been hovering at all-time highs of over 50% since 2010, thanks to large fiscal deficits incurred when an aggressive stimulus package was launched to bolster the country’s economy during the Global Financial Crisis, he added.

“After Sri Lanka, Malaysia now has the second highest public debt-to-GDP ratio among 13 emerging Asian countries according to a Bloomberg study,” he said, noting that Malaysia’s high public debt burden led to a sovereign credit rating outlook downgrade by Fitch in July.

“Like their government, Malaysian households are also binging on debt, which has caused the county’s ratio of household debt to GDP to hit a record 83% – Southeast Asia’s highest household debt load – which is up from 70% in 2009, and up greatly from the 39% ratio at the start of the Asian Financial Crisis in 1997,” Colombo said, adding that the Malaysian household debt has grown at around 12% annually each year since 2008.

…more
High debt, rising interest rates could pop Malaysia’s economic bubble, says analyst
BY THE MALAYSIAN INSIDER
October 16, 2013 – TMI

12
Sep
13

Fuel price hike and BR1M

News Analysis: Prime Minister Najib Razak has claimed that the 20 sen hike on RON95 and diesel would help the country to reduce its fiscal deficit.

He further claimed that the move would save the government RM1.1 billion in the remainder of 2013 and RM3.3 billion annually on the subsequent years.

Ok. He may be right.

But wait a minute.

To cushion the impact due to fuel price hike, Najib also announced that the cash payout for 1Malaysia People’s Aid (BR1M) would be increased in the Budget 2014.

However, he did not state how much it would be.

According to the figure provided by deputy Finance minister Ahmad Maslan last July in parliament, the government had spent a whopping RM2.9 billion for BR1M 2.0.

A total of 6.8 million recipients had received the cash aid, with 4.8 million receiving RM500 were those with household income of less than RM3,000 and another 2 million receiving

RM250 were from the bachelors group earning less than RM2,000.

As the finance minister, does Najib realise that giving BR1M actually cost more than what it can save from hiking the fuel prices?

At the old rate, BR1M would cost RM1.8 billion more than what it could save this year at RM1.1 billion.

Najib had promised to increase the cash payout.

Let’s assume the government would pay RM600 for household earning less than RM3,000 and RM300 for bachelors; BR1M 3.0 would cost the government a whopping RM3.48 billion, slightly more than the RM3.3 billion saved from fuel subsidies.

Mathematically, this has expunged Najib’s claim that the fuel price hike would help to reduce country’s fiscal deficit.

Now, how will the government recover the deep financial hole impact from their BR1M exercise?

Goods and services tax, electricity tariffs or new taxes? You name it. It seems like a people-unfriendly Budget 2014 is coming our way.

– harakahdaily.net

…more
The numbers don’t tally, Mr Prime Minister
04 September 2013 – Malaysian Chronicle

11
Sep
13

UNLIKE BN, PR would have cut fuel prices

KUALA LUMPUR – PKR leaders slammed Prime Minister Najib Razak for burdening the ordinary folk with the latest hike in petrol and diesel prices, urging him to instead look at reducing the subsidies granted to the corporate sector, especially the string of elite ‘fat cat’ independent power producers.

At a press conference held on Tuesday, MP for Pandan Rafizi Ramli warned of a fast down-spiraling economy, pointing to the recent downgrade by Fitch.

According to Rafizi, this was the first time that an international ratings agency had reduced Malaysia to a “negative” outlook due to the government’s lack of a comprehensive plan to correct the country’s economic imbalances wrought by decades of excessive spending and pump-priming.

Pakatan would have rolled out plan to cut fuel prices

When asked if the Opposition had won the May 5 general election, would it still have been able to reduce fuel prices as promised in its manifesto, Rafizi was confident that the Pakatan Rakyat led by Opposition Leader Anwar Ibrahim would have been able to do so.

“What Najib has done is just cut the subsidy for the poor, he doesn’t touch the IPPs or the corporates whereas we proposed a real allocation from the corporate – I mentioned RM13 bil just now – so if you take RM3.3 or 4 billion, that will have the immediate impact of increasing the disposal income of the public and this actually goes back into the economy because our economy these days is becoming more dependent on domestic demand,” said Rafizi.

“If you look at the total fuel subsidy per year, it is about RM24.8 bil. It has 2 components, one which is about 60% of the total comprising of petrol and diesel subsidies going back to the public which is about RM14bil. The other RM10bil goes to the corporate, which is in the form of cheap gas, cheap LPG, electricity and so many other things. On top of that, there is another RM8bil of opportunity lost because gas is sold cheaply to IPPs so there is an opportunity to restructure approximately about RM13bil worth of subsidies going to corporate sector every year. What we would have done is restructure the RM13bil and re-channel this to the public and while we have breathing space to lower the fuel price, we would simultaneously roll out other reforms.”

…more
UNLIKE BN, PR would have cut fuel prices – Rafizi slams Najib for putting CRONIES FIRST
3 September 2013 – Malaysia Chronicle




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How the 1MDB Scandal Spread Across the World (WSJ)
We cannot afford ridiculously expensive RM55 Billion ECRL!
All that is necessary
for the triumph of evil
is for good men
to do nothing.

- Edmund Burke
When the people
fears their government,
there is TYRANNY;
when the government
fears the people,
there is LIBERTY.

- Thomas Jefferson
Do you hear the people sing?

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