Tuesday 31 January 2012

‘Malaysia won’t go bankrupt’

Posted on January 31, 2012, Tuesday

KUALA LUMPUR: Tan Sri Ramon Navaratnam, chairman of Asli Centre of Public Policy Studies, says it is misleading to conclude that Malaysia will go bankrupt based on the fact the government’s debt in relation to gross domestic product (GDP) ratio has been rising in the last few years.
“If nothing is done to control the rising debt, then the matter is serious but any responsible government will take measures as the current government is doing so to reduce the debt, the debt-to-GDP ratio as well as the budget deficit,” he told Bernama yesterday.
He was asked to comment on the claims by various quarters, including the Opposition, that Malaysia would be bankrupt by 2019 and that the people should not vote for the current ruling government in the next general election.
The claims were made on assumptions based on a recent revelation by the Malaysian Institute of Economic Research that the ratio of government debt to GDP had been increasing each year. — Bernama

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