PUTRAJAYA – During his time as an opposition, Lim Guan Eng used to express his worries and said that the country may face bankruptcy as it is laden by debts following the 1MDB scandal. Nevertheless, he has changed his tone now as the Finance Minister.
He stated his confidence that Malaysia will not go bankrupt by making loans as the country is managed efficiently.
He claimed that although the government need to bear the RM150 billion loan due to the 1MDB and corruption scandals, however, the government is still able to balance the loss.
“Imagine, we have already lost RM52 billion for 1MDB. The other scandals cost another RM50 billion.
“Another RM50 billions are lost for Tabung Haji and also Felda scandals. The government would like to spend more in supporting the growth of economy however, we need to overcome the 1MDB ‘legacy’ first.
“No country will be able to lose RM150 billion without explaining the fiscal condition. I am confident that within the next two to three years, we can overcome all these and bring Malaysia to greater heights,” he said in his speech during the 2020 Budget Consultation Council meeting themed ‘Shared Prosperity: Engendering High-Quality Inclusive Growth Towards a High-Income Economy’.
More than 300 organisations from the public and private sectors and non-government organisations (NGO) participated in the council, which is also the platform to provide feedback on the budget.
The 2020 Budget Presentation is expected to take place at the Parliament this 11 October.
Elaborating further, the Member of Parliament of Bagan said that the government has managed to lower the debts and liabilities ratio from 79.3 percent of GDP in 2017 to 75.4 percent last year.
“The reduction was contributed a more efficient budget and debt management, savings through various public projects and a healthier economic growth,” he said.
According to Guan Eng, the government also managed to ensure that inflation remains low for the past three months at 0.2 percent.
He also said that the government is drafting the Cost-of-Living Index which will determine the minimum spending of a citizen for a comfortable living. -MalaysiaGazette