Income reduction & continuous borrowing, Lim Guan Eng should overcome the problem

In order to stimulate economic development, the government’s borrowing of funds is understandable. Finance Minister Lim Guan Eng thought that he could be rid of responsibilities if he blamed the former government, but what comes next is the real challenge. What Lim Guan Eng needs to worry about is that in the current state of reduced income, the Pakatan Harapan government’s national debt is still growing.

A government in debt needs to generate income and invigorate the economy. This is understandable. However, Guan Eng continues to insist on blaming the former government for the purported RM1trillion debt after Pakatan took office. With the abolition of the GST by the PH government, the nation’s coffers encountered a shortfall by RM20 billion. Coupled with the global economic downturn, our nation’s income has plummeted. Lim Guan Eng should pay attention on to the nation’s inability to pay off debts.

After Pakatan captured Putrajaya, the Pakatan government has borrowed a total of RM62 billion in loans. This includes RM55billion in government bonds and RM7.4billion in samurai bonds from Japan. This figure is steeper compared to BN’s administration which at the end of 2017, national debt was recorded at RM686.8 billion. In just one year under Pakatan’s administration, national debt has surged in excess of RM1 trillion! In a scenario where there is a sharp decline in national income, to be in debt continuously is of major concern.

If there are no efforts to boost the economy, the nation’s debt will continue to grow. Once the economy declines, the government's income will be affected. The PH government is currently facing this problem but tends to rely too much on borrowings.

One of the most worrisome aspects after Pakatan came into power is the advocacy of Bumiputera-centric policies. This unfriendly business environment led to the outflow of foreign capital and investments to other countries, resulting with less than optimistic prospects on the nation’s economy. If the government does not face up to the problem, this will cause an economic crisis in the future.

Tan Chee Hiong
MCA National Youth Deputy Chairman

-MCA online-