Rightways

Sunday, May 27, 2018

The notorious National Civics Bureau - Biro Tatanegara (BTN)

Controversial: The BTN has been accused of promoting racism, bigotry, disunity and intolerance in the name of instilling patriotism through its activities, like this in the National Transformation Training Programme.

National Civics Bureau - Biro Tatanegara

Pretty hate machine

Biro Tatanegaran has not only survived, but festered in a multinational country.

Its review is long overdue!

IF there’s one government agency which needs a complete overhaul by the new federal government, it must be the notorious National Civics Bureau, better known to Malaysians as Biro Tatanegara.

Over RM1.1bil of taxpayers’ money has been outrageously spent to promote racism, bigotry, disunity and intolerance in the name of instilling patriotism.

The BTN was set up in the 1970s as a Youth Research Unit under the Youth Ministry. But by the 1980s, the obscure agency had evolved into the BTN we know, and placed under the Prime Minister’s office.

Its objective is to nurture the spirit of patriotism among Malaysians, and train them into future leaders who are “well-rounded intellectually, emotionally and spiritually” to support national development efforts.

This monstrous machine was wellfed, not just during the Najib administration, but during the reign of the Mahathir administration as well. And certainly, Datuk Seri Anwar Ibrahim, too, used it as a political tool.

But that’s in the past. Malaysia has rebirthed. And as the perfect paradox, only Tun Dr Mahathir Mohamad, as the new prime minister, can set things right again.

Anwar would surely support any move to review, if not, bury the BTN, because he ended up the bogeyman in its lectures in later years while he was in the political wilderness.

The BTN has been fraught by controversy for over three decades, with allegations of racism and political propaganda mainstays.

It is inconceivable that good taxpayers’ resources are poured into such an organisation, which many participants have said, blatantly drums up race and hate politics.

BTN’s brickbats come from either side of the political divide, yet the uproar seems to have fallen on deaf ears, presumably shackled by the lack of political will, or worse, tacit political support from the top.

In 1999, PKR leader Nik Nazmi Nik Ahmad claimed that the BTN camp he attended was “racial and political in nature,” with trainers impressing on attendees that Malays required affirmative action. It even criticised PAS as “deviationist.”

Another party leader, Amirudin Shari, said “participants are indoctrinated with propaganda about ketuanan Melayu” or Malay dominance.

Another alumnus alleged she was told “the Malays were the most supreme race in the world, we were God’s chosen few, that the others were insignificant. We were warned about certain elements in our society and abroad, determined to undermine Malay excellence.”

In 2009, then minister in the Prime Minister’s Department Datuk Seri Nazri Aziz ticked off BTN, squashing excuses raised in a Parliament debate that allegations of racist teachings might have come from mere “minor slip-ups” by BTN lecturers.

“Don’t think that people outside do not know about the syllabus based on patriotism for Malays. They know what the syllabus is all about, so who are we to say that it did not happen? You want to lie? You make people laugh.

“I mean, there are people who attended the courses who came out very angry. There were many instances of the use of words like Ketuanan Melayu. It is ridiculous. Do they want to say that Malaysia belongs only to the Malays and the government is only a Malay government? Should only the Malays be given the spirit of patriotism? Other races are not patriotic about their country?”

As Dr Mahathir settles in and combs through the list of government agencies, this is surely one Malaysians would want scrutinised as part of the process of trimming the fat.

In a piece in Malaysiakini, the writer aptly said, “the BTN is an anathema to the need to nurture critical and creative thinking among Malaysians.”

While it began as a youth research unit in 1974, under the Youth Ministry, it was reinvented as the BTN in the PM’s Department under Dr Mahathir.

BTN was run by many supporters of Anwar, himself a regular speaker at these courses, though he would come to regret the things he said then.

It has turned into an ethnic hate machine, as one writer put it, and has metamorphosed into an out of control monster.

Surely, Dr Mahathir wouldn’t have imagined what it has become. Even if he allowed it to evolve into a political tool to indoctrinate civil servants and scholarship holders, especially Malays, it is time for him to sort this out.

BTN may have been set up with the noble intention of “nurturing the spirit of patriotism and commitment to excellence among Malaysians, and train leaders and future leaders to support the nation’s development efforts”.

But that’s not what has happened. It has, instead, from all accounts, attempted to instil hate and prejudice among Malaysians, aspiring to produce leaders and future leaders with a jaundiced view.

Malaysians would remember that in September 2010, BTN deputy director Hamim Husin was reported for referring to the Chinese as “si mata sepet” (the slit-eyed) and Indians as “si botol” (the drinkers) during a Puteri Umno closed-door function.

Despite the outcry and media revelations, BTN was allowed to continue as it is, and with huge allocations streamed into these indoctrination camps.

According to Lim Kit Siang, the budgets for BTN multiplied tenfold in the 1990s (RM200mil) compared to the 1980s (RM20mil), and continued to increase. It more than doubled to over RM550mil in the first decade of the 21st century. From 2010 to 2015, the allocation for BTN totalled some RM365mil.

Now that the DAP is part of the government, it should be able to push for the right course of action, given its consistently strong stand against the organisation.

This is the most opportune time to can BTN. Malaysians believe the new federal government won’t be angling to allocate more funds to keep this monster alive.

By Wong Chun Wai who began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Where will it end? Najib’s 1MDB chickens come home to roost

This Week in Asia

Where will it end? Najib’s 1MDB chickens come home to roost

27 May, 2018 - 08:43 am

The 1MDB scandal had haunted the administration of Najib Razak after first coming to light in 2015. Now there is a new sheriff in town, the public is on the edge of its seat as it watches the wheels of justice begin to turn.

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From Industrial 4.0 to Finance 4.0

https://youtu.be/Gs4_eurnrtU

https://youtu.be/GMMfxVxdlSM

https://youtu.be/Wkp5a7RZOsQ

MOST people are somewhat aware about the Fourth Industrial Revolution.

The first industrial revolution occurred with the rise of steam power and manufacturing using iron and steel. The second revolution started with the assembly line which allowed specialisation of skills, represented by the Ford motor assembly line at the turn of the 20th century.

The third industrial revolution came with Japanese quality controls and use of telecommunication technology.

The Fourth Industrial Revolution, or first called by the Europeans Industry 4.0, is all about the use of artificial intelligence, robotics, genomics and process, creative design and high speed computing capability to revolutionise production, distribution and consumption. Finance is a derivative of the real economy – its purpose is to serve real production. Early finance was all about the finance of trade and governments to engage in war.

It is no coincidence that the first central banks (Sweden and England) were established in the 17th century at the start of the First Industrial Revolution. Industrialisation became much more sophisticated as Finance 2.0 brought the rise of credit and equity markets in the 18th and 19th centuries. Industrialisation and colonisation came about at the same time as the globalisation of banks, stocks and bond markets.

Again, with the invention of first the fax machine, then Internet that speeded up information storage and transmission in the 1980s, finance and industry took a quantum leap into the age of information technology. Finance 3.0 was the age of financial derivatives, in which very complex (and highly leveraged) derivatives became so opaque that investors and regulators realised they became what Warren Buffett called “weapons of mass destruction”. Finance 3.0 stalled in 2007 with the Global Financial Crisis and was only propped up with massive central bank intervention in terms of unconventional monetary policy with historically unprecedented interest rates.

We are now on the verge of Finance 4.0 and it may be useful to explore what it really means.

The common definition of Industry 4.0 is the rise of the Internet of Things, in which cloud computing, artificial intelligence and global connectivity means that cyber-physical systems can interact with each other to produce, distribute and trade across the world in a massively distributed system of production.

But what does Finance 4.0 really mean?

What truly differentiates Finance 4.0 from the earlier version is the arrival of Blockchain or distributed ledger technology. The best way to think about the difference is the architecture of the two different systems.

Finance 3.0 and earlier versions were all about a top-down or hierarchical ledger system, like a pyramid, in which trade and settlements between two parties are settled across a higher ledger.

A simple example is payment from Joe in bank A to Jim in bank B is finally settled across the books of the central bank in local currency. But in international trade and payments, the final settlements (at least more than 60%) are settled in US dollar finally across the ledgers of the Federal Reserve bank system.

Finance 3.0 was not perfect and those who wanted to avoid regulation, taxation or any official oversight basically moved trading and transactions off-balance sheet and also off-shore. This was the “shadow banking” system that financial regulators and central banks conveniently blamed on their failure to see or stop the last global financial crisis.

Although technically the shadow banking system is the non-bank financial system, which would include bond, stock and commodity markets, the bulk of illegal, illicit transactions traditionally was done in cash.

Welcome to the technical innovation called cyber-currencies, which was made possible for peer-to-peer (P2P) transactions across a distributed ledger system (commonly known as blockchain). In architectural terms, this is a bottom-up system which technically can avoid any official oversight. Indeed, cyber-currencies or tokens were invented precisely because the users do not trust the official system.

As the populist philosopher Stephen Bannon said, “central banks are in the business of debasing the currency”. Hence, those who want to avoid the debasement of their savings prefer to deal with either cash or cyber-tokens like bitcoin (pic).

What is happening in the rapidly evolving Finance 4.0 is that as the world moves from a unipolar order to a multi-polar world in which other reserve currencies also contend for trade and store of value, the top-down architecture is fusing (or merging) with a bottom-up architecture in which trade, transactions and stores of value are shifting towards the P2P shadow system.

Why this is taking place is not hard to understand. Post-global financial crisis, the amount of financial regulations have tripled in terms of number of rules and complexity on what the official sector can regulate, which is mostly the banking system. It is therefore not surprising that all the innovation, talent and money are moving to outside the banking system into the asset management industry, which is much more lightly regulated.

No talented banker, however dedicated to the values of banking probity, can resist the temptations of working in asset management, away from the heavily regulated environment where he or she is 24x7 under regulatory internal and external oversight.

Another reason why the cyber-P2P business is flourishing is because the official sector is worried that further regulation would hinder innovation. But those who want to increase the complexity of regulation must remember that for every 50 foot wall, someone will invent a 51 foot ladder.

So competition in the 21st century has already moved from the physical and financial space into cyber-space.

If there is one thing I learnt as a former regulator, it is that if the banks are behind the curve in terms of technology, the regulators are even further behind, since they learn mostly from those whom they regulate. But if financial regulators deal with financial innovation through “regulatory sandboxes” where they allow their regulated banks to experiment in sandboxes, they are treating their regulated institutions as kids in an adult game of ruthless technology.

Time for the official sector to make their stand clear or else Finance 4.0 promises to be very different from the orderly world that they are used to imaging. Nothing says this clearer than a recent survey by the Chartered Financial Analyst Institute, which showed that 54% of institutional investors surveyed and 38% of retail believe that a financial crisis in the next one-three years is likely or very likely.

You have been warned.

- Tan Sri Andrew Sheng writes on global issues from an Asian perspective.

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Malaysia's RM1.09 trillion debt, 80.3% of GDP demystified

Analysts say new government needs to quickly introduce measures to reduce the country’s liabilities

ASSUMING the government repays its debt by RM1mil a day, it would take Malaysia 2,979 years to pay off its debts.

Malaysia’s new Prime Minister Tun Dr Mahathir Mohamad revealed on May 21 that the country’s debt level has breached the RM1 trillion mark during his first address to civil servants.

The statement, which was nothing less than alarming, has since raised concerns among Malaysians on the country’s fiscal sustainability. Bursa Malaysia was hammered for four consecutive days, as investors frantically sold off their stakes.

The benchmark FBM KLCI saw the biggest year-to-date decline on May 23, tumbling by 40.78 points or 2.21% to 1,804.25 points.

Total gains made by the index this year were all wiped out in just four days following Dr Mahathir’s announcement.

The ringgit, which has weakened since early April, continues to decline as concerns on public debt loom.

Big impact: The benchmark FBM KLCI saw the biggest year-to-date decline on May 23, tumbling by 40.78 points or 2.21 to 1,804.25 points.

An economist tells StarBizWeek that Dr Mahathir’s public announcement on the high debt figure is “not helping”, as anxiety intensifies among Malaysians and in the market.

For context, Malaysia’s real gross domestic product (GDP), an indicator of the size of economy, was RM1.35 trillion as at end-2017 – close to the said RM1 trillion debt amount.

Meanwhile, the federal government’s revenue this year is projected at RM239.9bil as per Budget 2018.

Several critics, including Umno Youth deputy chief Khairul Azwan Harun, claim that Dr Mahathir’s statement on the federal government debt was exaggerated and far-fetched.

AmBank Group chief economist Anthony Dass says that although the current scenario shows some signs of similarities to the 1997/98 Asian Financial Crisis, he would not conclude that the current fiscal condition is somewhat similar to the downturn 20 years ago.

At a glance, the “RM1 trillion debt” remark stands in sharp contrast to Bank Negara’s debt tally of RM686.8bil as at end-2017, putting the federal government’s debt-to-GDP ratio at 50.8% – lower than the 55% self-imposed debt limit.

Dr Mahathir refutes this, saying that the national debt-to-GDP ratio has shot up to 65.4%. A day after his announcement, Finance Minister Lim Guan Eng put the ratio at 80.3% of GDP, or about RM1.09 trillion in debt as at end-2017.

Why is there such an obvious difference in the debt amount now that a new government is in place?

Here is where “creative accounting” comes into play.

The lower official debt figures released under the previous Barisan Nasional government had excluded the contingent liabilities and several other major “hidden” debts from the direct liabilities, which amounted to RM686.8bil as at end-2017.

Contingent liabilities, which were released separately prior to this, basically refer to government-guaranteed debt and do not appear on the country’s balance sheet. Examples of contingent liabilities are the loans under the National Higher Education Fund Corp (PTPTN) and certain debt of the controversial 1Malaysia Development Bhd (1MDB).

As at end-2017, Malaysia’s contingent liabilities stood at RM238bil.

Funding for several government mega-projects such as the mass rapid transit (MRT) projects was also categorised as contingent liabilities. The MRT lines were funded by DanaInfra Nasional Bhd, the government’s special funding vehicle for infrastructure projects.

DanaInfra raises money from the market through sukuk, which are, in turn, guaranteed by the government. The guaranteed amount is classified as a contingent liability.

In the event of less-than-expected revenue collection from the MRT lines moving forward, the government will have to intervene to repay the sukuk holders.

The current ruling government believes that RM199.1bil out of the RM238bil contingent liabilities deserves attention to ensure proper debt repayment.

The 1MDB alone comes with an estimated contingent liability of RM38bil.

High figure: The 1MDB alone comes with an estimated contingent liability of RM38bil. — Reuters

On the remaining government guarantees, the Finance Ministry says they have been provided by “entities which are able to service their debts such as Khazanah Nasional Bhd, Tenaga Nasional Bhd

and MIDF”.

Apart from contingent liabilities, there are several major “hidden” debts, which do not fall under both direct liabilities and contingent liabilities.

An economist with a leading investment bank in Malaysia calls the debts “off-off-balance sheet” government debt.

These are the future commitments of the federal government to make lease payments for public-private partnership projects such as schools, roads and hospitals.

Examples of such debt would include the debt of Pembinaan PFI Sdn Bhd, a company owned by the Finance Ministry. Pembinaan PFI was established in 2006 under the previous Tun Abdullah Ahmad Badawi administration to source financing to undertake government construction projects.

According to its latest available financial statement for 2014, Pembinaan PFI held a total debt of RM28.75bil.

Interestingly, at end-2012, the company’s debt was the third highest among all government-owned entities, just behind Petronas (RM152bil) and Khazanah Nasional (RM69bil).

With no independently generated revenue, the interest payments on Pembinaan PFI’s debts would eventually come from the federal government’s coffers.

The Finance Ministry puts the debt under this third category at RM201.4bil.

All together, Malaysia’s debt and liabilities are said to amount to a total of RM1.09 trillion.

Actually, for those in the loop, the different debt categories and total liabilities are not something new.

Lawmakers from Pakatan Harapan, particularly current Bangi MP Ong Kian Ming, have alerted the authorities about the debt figures over that past few years.

Ong is also currently the special officer to the Finance Minister. The layman might ask, what was the former government’s relevance of classifying these debts into separate off-balance sheet items?

The motive is to make sure the national balance sheet looks healthy and lean.

Economists’ take

Many have questioned the new government’s move to lump contingent liabilities and debt obligations with the direct liabilities. It should be noted that as per the standard procedure of credit rating agencies, only the direct liabilities are taken into the calculation of the debt-to-GDP ratio.

In a StarBiz report this year, Moody’s Investors Service sovereign risk group assistant vice-president Anushka Shah said that by carving out certain expenditures off its budget, the government would be able to optimise its expenditure profile and minimise the associated impacts from its spending.

However, she pointed out that Malaysia’s federal government debt burden remains elevated at 51%, relatively higher than the median of other A-rated sovereign states at 41%.

On the country’s contingent liabilities, Anushka described them as “low-risk” at the current level, and added that the government has been prudent and careful in managing the guaranteed debts.

“We find that the government has adopted rigorous selection criteria when it grants the guarantees to the respective entities.

“The companies which have received guarantees from the government are relatively healthy and have strong balance sheet positions,” she said.

Ever since Dr Mahathir shocked the market with the “RM1 trillion debt” remark, the focus among Malaysians has largely centred on the nominal value of the debt.

A greater emphasis should instead be given on “debt sustainability”, which basically refers to the growth of debt against the growth of the economy.

Economists who spoke to StarBizWeek have mixed opinions on the level of seriousness of Malaysia’s public debt problem.

Suhaimi: Malaysia’s debt has risen faster
than economic growth.

According to Maybank group chief economist Suhaimi Ilias, Malaysia’s debt has risen faster than economic growth over the last 10 years.

“In the past decade, officially published government debt and government-guaranteed debt have risen by 10% and 14.5% per annum, respectively, faster than the nominal GDP growth of 7% per annum, which raises valid sustainability risk.“On the government’s debt service costs relative to the operating expenditure, the ratio was 12.7% as at end-2017 and based on Budget 2018 is projected to rise to 13.2%. It has been rising steadily from 9.5% in 2012.

“There is a 15% cap on this under the administrative fiscal rule, while the 11th Malaysia Plan target is to lower the ratio to 9.8% in 2020. The government is looking at the debt issue from this sustainability perspective in our opinion,” he says.

Lee: Malaysia’s rising public debt level
warrants close monitoring.

Meanwhile, Socio-Economic Research Centre (SERC) executive director Lee Heng Guie says that various indicators of debt burden suggest that Malaysia’s rising public debt level warrants close monitoring to contain the long-term risks of fiscal and debt sustainability.

“High levels of government debt over a sustained period will have economic and financial ramifications over the longer term. Rising public debt could crowd out private capital formation and, therefore, productivity growth.

“This occurs through the competition for domestic liquidity, higher interest rates, a shifting of resources away from the private sector or investment in low-impact projects. This situation is made worse if the government wastes borrowed money on unnecessary projects,” he tells StarBizWeek.

In contrast to Suhaimi and Lee, Alliance Bank Malaysia Bhd chief economist Manokaran Mottain points out that Malaysia’s debt sustainability scenario is yet to be a cause for concern.

Manokaran: Debt sustainability scenario is
yet to be a cause for concern.

This is because debt repayments are made on an annual basis as opposed to a colossal one-off payment of RM1 trillion.

“Malaysia’s economic growth of above 5% is sufficient to cover government debt. As long as the economy is growing while the government is able to service the debt charges, it is not really that alarming.

“Even in the United States, the government debt-to-GDP level exceeds 100% at US$21 trillion against the real GDP of US$18.57 trillion,” he says.

Manokaran adds that while total government debt has risen over the years, Malaysia’s annual debt growth rate has been growing slower in recent years.

Deleveraging Malaysia

The government must now move fast to introduce measures to reduce and manage the country’s debt levels. This is highly crucial in assuring creditors and investors that the country’s fiscal health remains uncompromised.

Given the fact that the world is currently at the tail-end of the 10-year economic cycle, it is timely for the government to focus on its ability to fulfil its debt obligations.

In the event of an economic turmoil, a heavily-indebted country would be adversely affected.

Lim has emphasised the federal government’s commitment to honour all of the country’s debts.

“This new government puts the interest of the people first, and hence, it is necessary to bite the bullet now, work hard to solve our problems, rather than let it explode in our faces at a later date,” he said in a statement earlier.

Economists believe that the government must strictly embark on reforming the national expenditure in carrying out debt consolidation.

This includes cutting down on unnecessary expenditure, plugging leakages in the federal government’s finances and containing public-sector wage bills.

Lee has recommended an overhaul the current pension system, considering the unsustainable current trend.

“On revenue reform, the design of tax policy should be fair and equitable in order to be sustainable.

“The push for a wide and investment-friendly reform to boost potential growth should be expedited, as strong investment and economic growth has a huge effect on enhancing revenue growth and reducing public debt.

“On budget planning and development, an oversight body needs to be set up to ensure better fiscal rules, budgetary processes and closer fiscal monitoring to ensure fiscal discipline,” says Lee.

Manokaran says the new government should consider expenditure cuts through the privatisation and reformation of the numerous government-linked corporations, as well as the reduction in size and budget allocation of the Prime Minister’s Office.

On the national mega-infrastructure projects, Manokaran and Suhaimi say that the renegotiation and review of such projects will be vital in managing future debt growth.

Time will tell whether the government can live up to its promise of reducing the public debt dilemma. Pakatan must now balance its “populist” electoral promises and stellar fiscal management policies.

As for now, the government deserves to be complimented for calling a spade a spade, acknowledging the problem at hand.

By ganeshwaran kana The Star

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Thursday, May 24, 2018

Robert Quok, Richest Malaysian Back Home

All ears: Bai Tian listening to Kuok during their meeting

https://youtu.be/CSUH-WbR2ek

PETALING JAYA: The return of billionaire Robert Kuok to Malaysia sends an important message that the Government is getting advice from highly-respected experts, a move that could instil confidence and optimism among the business community and the public, say economists.

Prof Dr Yeah Kim Leng said it was reassuring that the Government is listening to the views of a tycoon who has a thorough understanding of the history, as well as the economic and business landscapes of Malaysia and the region.

“We now know that whatever new policies or changes introduced would have been passed through or reviewed by Kuok and the panel of experts.

“We are in safe hands. We are able to secure the best advice. It is comforting and reassuring,” the Sunway University Business School economics professor said.

Kuok, 94, was named as a member of the Council of Eminent Persons (CEP) by Prime Minister Tun Dr Mahathir Mohamad to help shape policies and programmes to achieve Pakatan Harapan’s 100-day promises.

Headed by former Finance Minister Tun Daim Zainuddin, the CEP also includes former Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, former Petronas CEO Tan Sri Hassan Marican and renowned economist Prof Jomo Kwame Sundaram.

Kuok, who resides in Hong Kong, returned to Malaysia to attend his first CEP meeting on Tuesday.

Speaking to reporters later, he urged Malaysians to trust the council.

Yesterday, a video of Kuok meeting Dr Mahathir was uploaded on Kelab Che Det’s Facebook page.

He was seen saluting Dr Mahathir, saying: “I salute you. You saved the country.”

Socio-Economic Research Centre executive director Lee Heng Guie said Kuok and the other eminent persons conveyed a message that the Government was bent on making Malaysia better, more competitive and credible.

“Kuok is a prominent and respected entrepreneur. We can tap into his vast experiences in the corporate world. This will benefit Malaysia,” he said.

Lee expected Kuok to give his fair advice to the Government on how to ensure foreign investors would pour in to place Malaysia in the top of the list for investments.

Meanwhile, on the Government’s decision to review projects approved by the previous government – of which a substantial number of projects involved Chinese private and government-linked entities – Dr Yeah said Kuok could serve as the bridge between both countries.

“Some of the mega projects will likely see a need for a third party to intervene. Kuok will be an excellent intermediary.

“Investors will be more comforted if we have a intermediary that is able to facilitate discussion or smoothen out frictions if there is any,” he said, adding that this was to ensure the ties remained strong and not derailed should there be any hard decisions that needed to be taken.

Separately, China’s ambassador to Malaysia Bai Tian met with Kuok yesterday.

In an official statement, Bai spoke highly of the 94-year-old billionaire’s contributions to the development of Malaysia and the progress of China-Malaysia relations.

“He expects that Kuok would continue to contribute to the future development of China-Malaysia cooperation,” the statement said.

During the meeting, both of them agreed that friendly cooperation between China and Malaysia is in the fundamental interests of the two countries and their people.

“They believe that, as an important country along the 21st century maritime silk road under the Belt and Road Initiative, Malaysia could further benefit from mutually-beneficial and win-win cooperation with China.

“They recall the sound development of bilateral relations during Tun Dr Mahathir Mohamad’s last service as Prime Minister, and are both confident that during the term of the new government, China-Malaysia relations will achieve greater progress,” it added. - The Star

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Wednesday, May 23, 2018

RM7bil to bail out 1MDB, CEO Arul Kanda utterly dishonest & untrustworthy said Finance Minister

https://youtu.be/Joi3euZ6DIU

https://youtu.be/_drCqrquWPM

PUTRAJAYA: On top of paying RM6.98bil to bail out 1Malaysia Development Bhd (1MDB), the Government is now facing the prospect of forking out an additional RM953mil to service the company’s debts by November.

“I have been informed that besides the RM142.75mil due at the end of this month, another RM810.21mil worth of interest is due between the months of September and November in 2018,” Finance Minister Lim Guan Eng told reporters after being briefed by ministry officers.

Lim, who was shocked at the revelation, added that the ministry had been bailing out 1MDB by servicing its debts since April 2017, which included payments for International Petroleum Investment Corp’s (IPIC) settlement agreement amounting to RM5.05bil.

“This confirms the public suspicion that 1MDB had essentially deceived Malaysians by claiming that hit had paid via ‘successful rationalisation exercise’.

“It has been the ministry that has bailed out 1MDB,” he said.

He also said the previous government had conducted an exercise of deception with regard to 1MDB and even misrepresented the financial situation to Parliament.

Lim said 1MDB’s chief executive officer Arul Kanda Kandasamy, and directors Datuk Kamal Mohd Ali and Datuk Norazman Ayob will be grilled to determine the company’s state of affairs and its ability to service its debts.

He said officers from the ministry would conduct a detailed study on 1MDB’s debts and liabilities aimed at resolving the “crisis created by the scandal”.

“We will also submit our findings to the 1MDB task force formed by the Prime Minister,” Lim said.

Asked what was the full extent of 1MDB’s debts and liabilities, Lim said this would only be known with full access to files and accounts which had been previously barred or blocked to auditors.

He added 1MDB had contributed to the nation’s debts. - The Star

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