Malaysia's debts at manageable level: Daim
Publish date: Mon, 05 Mar 2012, 04:57 PM
Claims by certain quarters that Malaysia will be bankrupt by 2020 are baseless as the country's debt rate is still at a manageable level, says former finance minister Tun Daim Zainuddin.
Moreover, the government's borrowings were from domestic financial sources, he said.
"One important aspect of the national debt is that most of the funds were sourced from domestic loans.
"These form of borrowings are more stable as they did not expose Malaysia to a sudden outflow of huge amount of capital," said Daim, who was also financial adviser to the Malaysian Government in the 1990s.
Though the country's debt is expected to increase by 1.3 per cent to 54.8 per cent of the national gross domestic product this year vis-a-vis 53.1 per cent in 2010, the increase was justified with the impact of the global financial crisis which started at end-2008, he said in his interview with Mingguan Malaysia yesterday. -- Bernama
Moreover, the government's borrowings were from domestic financial sources, he said.
"One important aspect of the national debt is that most of the funds were sourced from domestic loans.
"These form of borrowings are more stable as they did not expose Malaysia to a sudden outflow of huge amount of capital," said Daim, who was also financial adviser to the Malaysian Government in the 1990s.
Though the country's debt is expected to increase by 1.3 per cent to 54.8 per cent of the national gross domestic product this year vis-a-vis 53.1 per cent in 2010, the increase was justified with the impact of the global financial crisis which started at end-2008, he said in his interview with Mingguan Malaysia yesterday. -- Bernama
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Be the first to like this. Showing 4 of 4 comments
Greece and every country in the world. Wont be a problem if w'out interest. All eventually will go to rothschild and rockerfeller family.
2012-03-06 09:35
Japan had a huge debt with zero interest. If you owe 1 trillion, eventhough no interest, the capital repayment will drained off every cents you earned for the next one thousand year. Not a good thing to inherite. Yes No Interset, Free Loan , Your worry is good enough for the interest discount. A Debt is still a Debt, no matter what.
2012-03-06 10:17
japan is due to earthquakes keep hitting the country. if not it'd have gone bangkrupt. strange how theres only one country like that. its hard to pay back interest if they print only the principal. someone has to go into homelessness in the end.
2012-03-06 16:04
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A debt is a debt which needs to be pay off later. It is much better without debt. Once you are addicted, you keep borrowing. Then troubles and your children and grand children will be cursing you. A good example is Greece.
2012-03-06 09:08