Malaysians have every reason to be worried about how the Malaysian government handles its debts as Malaysians are its main creditors. Our hard earned monies and savings will be lost if the Malaysian Government defaults in its debts or starts to print or issue more Malaysian currency.
The BN Federal Government has often boasted that Malaysians need not worry about the Federal Government’s debts as only 3% or RM18.8 billions are foreign debts while 97% or RM608.7 billions are domestic debts. The BN Government had also repeatedly asserted that it will not become a bankrupt government.
In a reply to me in Parliament, the Finance Minister said that the domestic debts of RM608.7 billion are owed to the following institutions.
Creditors Amount Percentage (%)
(i) Employees Provident Fund 127.6 20.3
(ii) Pension trust fund 20.3 3.2
(iii) Banking Institution 148.8 23.7
(iv) Insurance Companies 30.3 4.8
(v) Development Financial Institutions 22.8 3.6
(vi) Others (including Bank Negara 78.8 12.6
Malaysia) ____ ____
Total: 608.7 97%
The monies in the above said institutions are monies belonging to Malaysians who have saved or parked with the said institutions. Malaysians will suffer great losses directly if the BN Government defaults in its debts. It is true that the Government will not become a bankrupt because it has the exclusive authority to print or issue our currency notes. If our Federal Government starts to print or issue more currency notes, our Malaysian ringgit will depreciate in value. Malaysians will then be ‘robbed’ of their hard earned money and savings.
Malaysians are our Federal Government’s main creditors and therefore, we must be vigilant and demand transparency with regard to how our Government manages our public funds. We do not want to end up like Zimbabwe, a country which our then Prime Minister, Tun Dr Mahathir Bin Mohamed once described as a successful developing nation when it started to print and issue its currency indiscriminately. Its currency is now worthless.
In Zimbabwe today, the only currency that is not acceptable as a trading currency is her own currency (attached herewith is a hundred trillion Zimbabwe dollar note which someone presented me as a gift which is valueless).
Our Federal Government is indebted in the total sum of RM627.5 billions. All our hard earned money and savings will be lost if our Federal Government incurs further debts and is unable to pay and resort to indiscriminate printing or issue of Malaysian Ringgit to settle its debts.
Dated this 17th day of December 2015.
NGEH KOO HAM
Member of Parliament for Beruas
Deputy Secretary General DAP Malaysia