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Corrupt Malaysia money distorts Melbourne market

Nick McKenzie, Richard Baker, John Garnaut
The Age
June 23, 2015

Even in Melbourne’s booming property market, the $22.5 million price tag for a building designed like an IKEA cupboard seemed well above the odds. That’s because it was.

Named Dudley House by developers keen to imbue it with a sense of grandeur, it seems the last place to host any untoward dealings.

But the sordid tale of this building highlights one reason that federal treasurer Joe Hockey is so concerned about the foreign funds flowing into an already overheated property market, as well as why local and international corruption fighters say Australia has become an investment hot spot for the crooked and corrupt.

An eight-month Fairfax Media investigation has traced suspicious money flows, court files and corporate records across three continents to uncover why Dudley House’s purchase price was so high.

Its sale was part of a global money laundering and bribery scheme engineered by greedy local developers and powerful officials overseas who pocketed $4.75 million in bribes on this single deal.

Fairfax Media has also discovered that some of these same figures are linked to tax haven companies which are also behind the purchase of around $80 million in Australian properties. Continue reading “Corrupt Malaysia money distorts Melbourne market”

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Why things like 1MDB happen

By P Gunasegaram
Malaysiakini
May 28, 2015

QUESTION TIME Malaysia had no major financial scandals – as in billion-ringgit ones – until the infamous case of Bumiputra Malaysia Finance or BMF emerged in the early eighties and captured the imagination of the press and the public.

Before we are a bit quick to point the finger at former prime minister Dr Mahathir Mohamad for that, let’s point out that Mahathir became prime minister only in 1981, after BMF, Bank Bumiputra’s wholly-owned Hong Kong subsidiary, started loaning money to George Tan’s Carrian group, eventually amounting to RM2.5 billion in all.

The loans were made between 1979 and 1983, which means that loans continued to be made to Carrian even after Mahathir became PM, implying that Mahathir cannot be totally absolved.

Carrian was a rising star in the Hong Kong property market then but subsequently went bust, making it the biggest bankruptcy in Hong Kong at the time. The scale of the scandal was simply enormous and record-breaking, putting Malaysia on the top of the list in terms of banking failure at that time.

The question is what was a unit of Bank Bumiputra, a bank set up to provide bumiputeras access to funding as part of the effort to increase their participation in business, doing lending money to a Hong Kong property group?

This was at that time, the largest banking scandal in the world and the interest in it spiked further when a Bank Bumiputra senior officer sent to Hong Kong to investigate was murdered and his body dumped in a banana plantation. Continue reading “Why things like 1MDB happen”

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Will Mahathir knuckle under the threat of RM1 million reward for information about his wrongdoings as Prime Minister for 22 years causing RM100 billion losses to Malaysia from his various financial scandals and fade from the political scene?

I read today of a new NGO which has offered a reward of up to RM1 million for information about the wrongdoings of Tun Dr. Mahathir during his 22 years as Prime Minister causing RM100 billion losses to the country from his various financial scandals.

As one of the few who had stood up in and out of Parliament to consistently and persistently criticise and oppose the series of financial scandals and abuses of power during Mahathir’s premiership from 1981 – 2013 – and paying a heavy price of being detained for a second time for 18 months under the Internal Security Act during Operation Lalang where Guan Eng and I were the first to be detained but the last to be released – I find the report of a RM1 million bounty for information about Mahathir’s wrongdoings both amusing and interesting.

Why wasn’t such a RM1 million bounty offered during Mahathir’s 22-year tenure as Prime Minister from 1981-2003? Was it because such an offeror would find himself in incarceration even before the ink of such an offer could dry?

Why was such a RM1 million bounty offered only 12 years after Mahathir had stepped down as the fourth Prime Minister of Malaysia? Were they sleeping for the past 12 years and could not pluck up the courage for such a public-spirited offer?

Has the RM1 million bounty any connection with Mahathir’s stepping up of his attacks on Datuk Seri Najib Razak as Prime Minister of Malaysia, whether on the RM42 billion 1MDF financial scandal or the murder of Mongolian Altantuya Shaariibuu, which will bring it within the zone of a proxy war in the escalation of the Najib-Mahathir titanic battle? Continue reading “Will Mahathir knuckle under the threat of RM1 million reward for information about his wrongdoings as Prime Minister for 22 years causing RM100 billion losses to Malaysia from his various financial scandals and fade from the political scene?”

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Najib Government is even more shambolic than the Abdullah Government, not only the right hand not knowing what the left hand is doing, but Cabinet Ministers and DPM in the dark as to what the PM is doing

The Najib Government is even more shambolic than its predecessor, the Abdullah Government, not only the right hand not knowing what the left hand is doing, but Cabinet Ministers and the DPM in the dark as to what the PM is doing.

It has resulted in the Sabah Speaker and Sabah UMNO Deputy Liaison Chief , Datuk Seri Salleh Said Keruak virtually demanding for the resignation of the Deputy Prime Minister, Tan Sri Muhyiddin Yassin and three Cabinet Ministers, Datuk Seri Hishammuddin Hussein, Datuk Seri Shafie Apdal and Khairy Jamaluddin for “trying to save their own necks” on the RM42 billion 1MDB scandal and the latest 1MDB-LTH bailout fiasco by breaching the principle of collective Ministerial responsibility, “making statements as if they are outsiders and not part of the Cabinet”. Continue reading “Najib Government is even more shambolic than the Abdullah Government, not only the right hand not knowing what the left hand is doing, but Cabinet Ministers and DPM in the dark as to what the PM is doing”

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Making Corruption Unsustainable in China

By Yukon Huang
Wall Street Journal
March 26, 2015

Xi Jinping’s anticorruption campaign will only succeed if more is done to address the structural factors making corruption possible.

A decade from now, President Xi Jinping’s reign might be defined more by the success of his anticorruption campaign than his country’s material progress. China has always been the outlier on many economic issues, and so it is with corruption. Studies show that for most developing countries, corruption retards economic growth. They also suggest that developed countries are less corrupt than developing ones. So has China managed to grow so rapidly because or in spite of rampant corruption? And why has corruption in China gotten worse rather than better?

Corruption has featured prominently in China’s dynastic history, but this current bout stems, ironically, from the major reforms launched by Deng Xiaoping. His opening-up of the economy four decades ago paved the way for a hybrid socialist market economy that, similar to the former Soviet Union republics, is particularly prone to corruption during its transition. Deng’s famous saying that “to get rich is glorious” removed any moral qualms about making money—legally or illegally. Continue reading “Making Corruption Unsustainable in China”

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Auditor-General’s assurance of professional audit of 1MDB most welcome although public confidence have not been helped by contradictory or uncharacteristic statements by MACC and Police

I welcome the promise by the Auditor-General Tan Sri Ambrin Buang that his department will call up any individual necessary even Prime Minister Datuk Seri Najib Razak in completing an independent audit on strategic fund 1Malaysia Development Bhd (1MDB).

The Auditor-General’s assurance of professional audit of 1MDB and not to be swayed by extraneous considerations is most welcome, although public confidence that the various authorities would adopt a professional, accountable and responsible approach in the handling of the 1MDB scandal had not been helped by contradictory or uncharacteristic statements by the Malaysian Anti-Corruption Commission (MACC) and the Police.

Suddenly, there seems to be a competition among the various departments to show courage and eagerness to investigate the Prime Minister, Datuk Seri Najib Razak himself – as not only Ambrin does not rule out such possibility, even the Inspector-General of Police, Tan Sri Khalid Abu Bakar pointedly said that Najib would be one of the targets of investigation by a three-agency task force to probe the 1MDB scandal.

In fact, the IGP’s announcement has detracted the credibility of the Auditor-General’s statement that his department’s audit would not exclude an investigation into the Prime Minister, for who would believe the IGP’s claim when he had been guilty of kid-glove treatment to BN Ministers and leaders, letting off the Minister of Agriculture and Agro-based Industries Datuk Ismail Sabri for the most racist and seditious incitement in calling on Malay consumers to boycott Chinese businessmen and allowing the former Deputy Minister in the Prime Minister’s Department, Datuk Mashitah Ibrahim to enjoy impunity and immunity for spouting heinous lies to incite religious hatred, conflict and tension in plural Malaysia. Continue reading “Auditor-General’s assurance of professional audit of 1MDB most welcome although public confidence have not been helped by contradictory or uncharacteristic statements by MACC and Police”

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Country should make reparations and restore justice and honour to former High Court judge Datuk Syed Ahmad Idid, the country’s first judicial whistleblower who was victimized and punished instead of being rewarded for his act of supreme loyalty to his oath of office as a judge

The country should make reparations and restore justice and honour to former High Court judge Datuk Syed Ahmad Idid Syed Abdullah Idid, the country’s first judicial whistleblower who was victimized and punished instead of being rewarded for his act of supreme loyalty to his oath of office as a judge.

If Syed Ahmad Idid’s whistleblowing in March 1996 had been heeded, resulting in thorough investigations and root-and-branch reform of the judiciary 19 years ago, Malaysian judges, lawyers and citizens would have been able to stand tall in the world today because we would have a judiciary nationally and internationally respected for its independence, integrity and quality!

Now, Malaysian judiciary in 2015 is back in the dock of public opinion, both inside the country and internationally, over the independence, integrity and professionalism of its judiciary and its commitment to a just rule of law because of four cases this year, viz: Continue reading “Country should make reparations and restore justice and honour to former High Court judge Datuk Syed Ahmad Idid, the country’s first judicial whistleblower who was victimized and punished instead of being rewarded for his act of supreme loyalty to his oath of office as a judge”

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Will the Cabinet continue the traditional three monkeys role of “eyes that see not, ears that hear not and mouths that speak not” or will they take the bull by the horn to address the three issues which dominate public opinion in past week?

Just before midnight, a Cabinet Minister tweeted that he had just left his constituency which is about three hours’ drive from Kuala Lumpur: “Need to read cabinet papers after I reach home. Tmr morning cabinet meeting as usual.”

My first thought was whether the Cabinet papers would include the thousands of 1MDB transactions and email which 1MDB had tried to “wipe” clean from their computers and servers at the end of last year.

Will the Cabinet papers for all Ministers for the Cabinet meeting later this morning cover at least the three issues which had dominated public opinion in Malaysia in the past week, or will it be another Cabinet meeting to avoid and skirt important national issues like the infamous past Cabinet meetings?

First Issue. Leading the three important issues which should dominate a meaningful Cabinet meeting today is undoubtedly the RM42 billion 1MDB scandal, which has been blown wide open by the joint London Sunday Times/Sarawak Report investigations and access to thousands of transactions and email of 1MDB despite abrupt attempts by 1MDB at the end of last year to call in all of its computers, employee laptops and servers to wipe them clean of all emails.

Will the Cabinet end its traditional three monkey stance of “eyes that see not, ears that hear not and mouths that speak not” on the 1MDB scandal for the past six years, take the bull by the horn and decide either to set up a Royal Commission of Inquiry headed by former Law Minister Datuk Mohd Zaid Ibrahim or other independent credible Malaysians or give support for a full-scale Public Accounts Committee (PAC) public inquiry into the 1MDB scandal? Continue reading “Will the Cabinet continue the traditional three monkeys role of “eyes that see not, ears that hear not and mouths that speak not” or will they take the bull by the horn to address the three issues which dominate public opinion in past week?”

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MACC should launch a full-scale investigation into the PMO Statement in the New York Times attributing the Prime Minister’s expenditure, including the multi-million dollar purchases of his wife, to his inheritance or is MACC a mere “paper tiger”?

The Malaysian Anti-Corruption Commission should launch a full-scale investigation into the Prime Minister Office’s Statement in the New York Times of February 9, 2015 attributing the Prime Minister’s expenditure, including the multi-million dollar purchases of his wife’s jewellery and shopping sprees, to his inheritance or is the MACC a mere “paper tiger”?

The PMO statement to New York Times said:

“Neither any money spent on travel, nor any jewellery purchases, nor the alleged contents of any safes are unusual for a person of the prime minister’s position, responsibilities and legacy family assets.”

The PMO statement in the New York Times had greatly offended and outraged the four brothers of the Prime Minister, Johari, Nizam, Nazim and Nazir who, in a rare private statement expressed worry that the name of their father, who was known for his frugality, would be tarnished by such talks of family assets. Continue reading “MACC should launch a full-scale investigation into the PMO Statement in the New York Times attributing the Prime Minister’s expenditure, including the multi-million dollar purchases of his wife, to his inheritance or is MACC a mere “paper tiger”?”

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China’s corruption probe bares its teeth

By Jonathan Fenby
BBC
20 February 2015

Every Chinese republican regime and imperial dynasty has inveighed against corruption.

The impact has invariably been limited, with campaigns against graft scraping only the surface and being abandoned after a short period when a few big fish have been held up to public scrutiny and the immediate political aim has been achieved.

This time, it is different.

The anti-corruption campaign launched by China’s leader, Xi Jinping, after he took office at the end of 2012, will go on forever, says its chief implementation officer, Wang Qishan, head of the Communist Party’s Discipline Commission. Continue reading “China’s corruption probe bares its teeth”

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Public corruption in China: Then and now

Richard Wong
South China Morning Post
17 February, 2015

China has waged a campaign against public corruption for the past two years and there is no sign of abatement. At first, there was speculation it was a cover for a power struggle and therefore would be short-lived. Increasingly, it appears to be a means of forging a new social contract for the post-Deng era.

The social contract forged by Deng Xiaoping traded market-driven economic growth for political stability. Some individuals and families amassed huge fortunes in the process. Many were private entrepreneurs whose gains were made through fair market competition, but others were public officials who captured economic benefits through the exercise of political influence. The rise of this public corruption has incensed the public.

Some commentators allege that corruption might be inherent to Chinese culture because, for over two thousand years, the traditional Chinese economy was quite corrupt despite failing to grow.

But the public corruption that existed in traditional China is fundamentally different in nature from that which has appeared in a modernising China. Continue reading “Public corruption in China: Then and now”

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From Sodomy I to Sodomy II – Malaysia regressing to the darkness and repression 17 years ago when the country should be moving forward to greater freedom, justice, prosperity and confidence after the passage of almost two decades

Wishing all Malaysian Chinese as well as Malaysians, regardless of race or religion, a Happy Chinese New Year as it is now a festivity celebrated by all Malaysians regardless of race and religion.

Chinese New Year, which begins on the second new moon after the winter solstice, has been described as the most important holiday for Chinese people worldwide.

In China, it is marked by the world’s largest annual human migrations with 2.8 billion trips made across the country in the mass exodus of students, migrant labourers, factory workers and office employees making their long journeys home to celebrate the Chinese New Year.

Chinese New Year in Malaysia has become a very Malaysian affair, despite its ethnic origins and associations.

In Malaysia, the Chinese New Year is also marked by major human migrations, but not confined to the Chinese as it affects other ethnic groups as well.

Many issues will jostle for top attention among Malaysians during the Chinese New Year. Continue reading “From Sodomy I to Sodomy II – Malaysia regressing to the darkness and repression 17 years ago when the country should be moving forward to greater freedom, justice, prosperity and confidence after the passage of almost two decades”

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Revolt Against Corruption Triumphs in Delhi

By John Elliott
Newsweek
2/16/15

The swearing in over the weekend of social activist and anti-corruption campaigner Arvind Kejriwal as chief minister of Delhi marks the latest stage of a dramatic country-wide rejection of the way that India is governed, which has been building up over the past four years.

This is not a single tidal wave threatening to overwhelm the country, but it does stem from a new, young and aspirational India which wants governments that genuinely offer the prospect of change and economic growth. It threatens crony corrupt politicians, who for decades have been more concerned with self-aggrandisement and milking administrations than with governing constructively in the interests of the people who elected them.

Uniting castes, classes, religions and regional interests, it led last year to the election of Narendra Modi as a presidential-style prime minister, and last week to Kejriwal’s surprise landslide victory that has created excitement in the city. In both cases, voters’ hopes are based primarily on the leadership ability and drive of one man–even though fulfilling the electorate’s expectations is a near impossible task.

This leads inevitably to questions about where the revolt against the way India has been governed will be heading if the two men fail. Cynics suggest that voters will turn back to traditional politicians and parties–including even the discredited Gandhi dynasty’s devastated Congress Party. Sceptics see growing social unrest, fueled by increasing unemployment, especially among the young. Continue reading “Revolt Against Corruption Triumphs in Delhi”

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Here’s The Ridiculous Loot That’s Been Found With Corrupt Chinese Officials

Harrison Jacobs
Business Insider
Jan. 23, 2015

China President Xi Jinping is two years into his unprecedented fight to eliminate the corruption that permeates the Communist Party in China. Since assuming office in early 2013, Xi has vowed to “hunt tigers and swat flies,” meaning he’ll target both high- and low-level officials.

In contrast to previous Chinese leaders, Xi has been adamant that no one is untouchable. Big targets like former security czar Zhou Yongkang and former military chief Xu Caihou, once thought untouchable by even top officials, were some of the first to fall in Xi’s crusade.

While Xi and the Party are notoriously tight-lipped about the inner workings of the Communist Party, they have been remarkably open about the illicit goods, cash, and properties found in the hands of the corrupt officials they’ve taken down.

Of course, Xi may have a hidden motive for being so transparent — to convince the public he’s winning the battle against corruption. Whatever the reason, he’s given Western observers an unprecedented view into the level of corruption of Chinese officials.

Here are a few of the more outrageous examples: Continue reading “Here’s The Ridiculous Loot That’s Been Found With Corrupt Chinese Officials”

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Will Najib be Mahathir’s sixth scalp or is Malaysia hauling the first “tiger” or “crocodile” to court and prison in the country’s anti-corruption campaign?

The country’s politics is abuzz with extraordinary news recently, raising the question whether the sixth Prime Minister of Malaysia will be the sixth scalp of the fourth Prime Minister of Malaysia or whether the country is hauling the first “tiger” or “crocodile” to court and prison in Malaysia’s anti-corruption campaign.

In the past 45 years, the fourth Prime Minister of Malaysia, Tun Dr. Mahathir Mohamad had collected five scalps of top political leaders in the country, starting with Bapa Malaysia and the first Prime Minister of Malaysia, Tunku Abdul Rahman, two Deputy Prime Ministers who might have gone on to become Prime Ministers, Tun Musa Hitam and Datuk Seri Anwar Ibrahim, the fifth Prime Minister, Tun Abdullah Ahmad Badawi, and the eternal Prime Minister-aspirant Tengku Razaleigh Hamzah.

The question now is whether Mahathir will add the sixth Prime Minister of Malaysia, Datuk Seri Najib Razak, to his collection of six top political scalps in Malaysia. Continue reading “Will Najib be Mahathir’s sixth scalp or is Malaysia hauling the first “tiger” or “crocodile” to court and prison in the country’s anti-corruption campaign?”

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Revised 2015 Budget should declare war on corruption, incompetence and extravagance to provide example and leadership of government commitment to austerity, accountability and integrity

The revised 2015 Budget should declare war on corruption, incompetence and extravagance to provide example and leadership of government commitment to austerity, accountability and integrity.

Such a campaign would save the Malaysian government and taxpayers scores of billions of ringgit, which would help the country tide through the looming economic crisis as a result of the sharp fall in prices of oil and commodities and the weakening of the Malaysian ringgit.

Despite the greatest investment in anti-corruption campaign, with the Malaysian Anti-Corruption Commission developing into a huge bureaucracy but with very little to show in terms of results, the Najib premiership is still far behind the Abdullah and Mahathir premierships in both ranking and score of the annual Transparency International (TI) Corruption Perception Index (CPI).

Malaysia lags seriously behind other countries in the battle against corruption, particularly Indonesia and China, and Malaysia is at risk of being overtaken by these two countries which had occupied the bottom two of rungs of the TI CPI 1995 two decades ago in a matter of a decade.
Continue reading “Revised 2015 Budget should declare war on corruption, incompetence and extravagance to provide example and leadership of government commitment to austerity, accountability and integrity”

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Fears grow over fallout from Petrobras corruption scandal

Samantha Pearson in São Paulo
Financial Times
January 7, 2015

Fears are growing over the systemic impact of the corruption scandal at Petrobras, Brazil’s state oil producer, as one of the construction firms linked to the allegations edges closer to default and the country’s credit rating comes under pressure.

OAS, which is building the world’s third-largest dam and revamping São Paulo’s international airport, has missed two debt payments over the past week after the scandal restricted its access to funding, forcing it to preserve cash to pay for operations.

Analysts said that similar difficulties across Brazil’s construction and oil industries could have knock-on effects on the world’s second-largest emerging market economy, especially if Petrobras itself cannot regain access to capital markets.

“The risk is that the government would have to provide financial support to Petrobras in the event of an acceleration of debt,” Mauro Leos, Moody’s sovereign analyst for Brazil, told the Financial Times. Such a scenario “could lead to a credit event”, affecting Brazil’s sovereign credit rating, he added.

The warning comes as President Dilma Rousseff is battling to protect Brazil’s coveted investment grade rating with a series of market-friendly measures — efforts that could be obscured by the prospect of bailing out Petrobras, Mr Leos said.

With more than $139bn in total debt, Petrobras ranks as the world’s most indebted oil producer, but it retains an investment grade credit rating. Continue reading “Fears grow over fallout from Petrobras corruption scandal”

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Top Chinese diplomat being investigated for corruption

BBC News
2 January 2015

A senior Chinese diplomat is being investigated for corruption, China’s foreign ministry says.

Zhang Kunsheng has been removed from his position as assistant foreign minister and is being probed for “violating discipline”, a brief statement from the ministry read.

President Xi Jinping has vowed to eradicate corruption in China.

State media described Mr Zhang as the highest-ranking diplomat to be targeted in the anti-corruption drive.

The anti-corruption campaign has netted thousands of officials since it began in 2012, among them former security chief Zhou Yongkang in 2014. Continue reading “Top Chinese diplomat being investigated for corruption”

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China’s anti-corruption drive continues to net ‘tigers’ & ‘flies’

CCTV.com
12-30-2014

2014 saw the fall from grace of some of the country’s biggest names in politics and the military. And the wide-reaching, anti-corruption campaign launched by President Xi Jinping last year continues to net both high-ranking “tigers” and low-ranking “flies”.

China’s new leadership, two years in, and there’s no letting up in the fight against corruption. Some 25,000 officials were investigated on suspicion of corruption in just the first half of 2014. And no one, no matter how high their ranking, appears safe.

Zhou Yongkang, once one of the most powerful men in the country, has been arrested on a raft of corruption charges, including the leaking of official secrets and bribery.

Xu Caihou was one of China’s top generals. He is one of the highest level military officer to be investigated since 1949. And it’s sending shock waves through the People’s Liberation Army.

This all-out anti-corruption campaign has struck fear into the hearts of China’s corrupt officials, with one noticable result, they are shunning all forms of extravagance. Luxury sales are down, from fashion garments to shoes and jewellery. Continue reading “China’s anti-corruption drive continues to net ‘tigers’ & ‘flies’”

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Questions for 2015

Tan Siok Choo
The Sun Daily
29 December 2014

WITH 2014 drawing to a close, I have several questions about issues that arose this year but could impact Malaysia’s future.

Question 1: Why does Putrajaya persist in maintaining Malaysia’s growth in gross domestic product (GDP) in 2015 won’t be affected by plummeting prices of oil, a commodity that contributes significantly to federal government revenue?

Budget 2015 was prepared when Brent oil – the benchmark for Petronas’s Tapis blend – was in triple digits. Analysts estimate federal government revenue next year is based on an oil price of US$105 per barrel.

Last Friday, amid thin trade, Brent oil for February settlement closed at US$59.45 a barrel.

Labelling the World Bank’s revised forecast of 4.7% GDP growth next year as “too conservative”, top Malaysian policymakers announced the 5% to 6% economic growth target for 2015 will be maintained.

Admittedly, plummeting oil prices could be beneficial – it could stimulate global economic growth and reduce fuel costs for motorists and for sectors like airlines and truckers. Even so, shouldn’t Putrajaya prepare for the worst rather than adopt a wait-and-see attitude? Continue reading “Questions for 2015”