Kuching, March 22, 2012: PRS president Tan Sri Dr James Masing should look at his own BN government before accusing the Opposition of using populist policies to win support from the people.
“He should take a good look at what his government is doing, with all sorts of schemes to make themselves popular again under the so-called 1Malaysia this and that,” Sarawak PKR chairman Baru Bian said at a press conference today.
“In fact, opposition-run states have shown that by their prudent management, they have managed to decrease their state debt levels,” he said.
Baru said Penang managed to reduce (its) state debt from RM630 million in March 8, 2008 to only RM30 million as at end of October 2011, representing a debt reduction of 95 per cent, or RM600 million, which is the highest debt reduction of any state in Malaysia’s history.
Selangor Menteri Besar Tan Sri Khalid Ibrahim has led Selangor to post the largest state budget surplus in the state’s history.
He added by the end of 2010, the reserves stood at RM918 million, and increased state revenue by RM200 million in under six months.
“The Ministry of International Trade and Industry released figures recently that showed the federal opposition-controlled states of Penang and Selangor had recorded the highest levels of approved manufacturing investment in 2011, at RM9.1 billion and RM8.74 billion respectively.
“It is all about good governance and fiscal management – investors have confidence in the opposition held state governments and are willing to invest.
“But Sarawak, with half million with no electricity, poverty level increasing and with only 25% of labour force has any form of post secondary education.
“The revenues from oil and gas is being taken out of the state and we arel one of the poorest states in Malaysia,” he added, calling on the people to change the BN government with Pakatan Rakyat.
Baru said the national debt is currently at 53% of the gross domestic product (GDP), which the deputy finance minister claimed is something not to worry as the country still has 2% buffer.
He said the Loan Act 1959 and Government Funding Act 1983 state that the public debt ratio must not exceed 55% of the nation’s Gross Domestic Product (GDP).
He said Malaysia has been operating on deficit budgets for the past 13 years, with the national debt reported as RM146 billion in 2002, RM217 billion in 2004, RM242 billion in 2006, RM326 in 2009, RM407.1 billion in 2010 and RM455.75 billion in 2011
He said in 2010, Minister in the Prime Minister’s Department Datuk Seri Idris Jala predicted that Malaysia would be bankrupt by 2019 if the government did not reduce its subsidies and the high national debt.
“The Malaysian Institute of Economic Research (MIER) distinguished fellow Mohd Ariff Abdul Kareem has warned that federal government revenue was growing too slowly to keep up with its borrowings which hit 53.1 per cent of GDP in 2010.
“ Mohd Ariff said Malaysia’s national debt will hit 100 per cent of the GDP by 2019 should Putrajaya continue to borrow more than it earns.
“But yet the Govt continues with its 1M populist schemes this election year – RM100 for school students, RM200 for tertiary students, RM500 for the lower income families and so on.
“Where is the money coming from to fund these giveaways?” Baru asked.
Ends
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