Fast 7: To the Malaysians who are now in Australia…
LSS Report
I had noticed that many former or current Malaysians who have now moved to Australia likes to continually attack the Malaysian government over several issues, which is normally propagated by the PakaTun politicians.
Among these issues which they like to use to whack Malaysia are these 7 :
1. Malaysia is going bankrupt due to high household debts.
This is the most strange as the commonly cited Malaysia’s household debt to GDP is 89%. But Australia’s ratio just overtook Switzerland and Denmark (both of which is about 120% too) to became the highest in the world earlier this year at 125.2%.
If you don’t like to read graphs then you can read about it here in the article titled “How Australian households became the most indebted in the world”.
2. Malaysia is going bankrupt due to high government debts.
They say that Najib has increased the govt debt greatly since he became PM and that the Govt debt to ratio has jumped 13% from 41.24% in 2008 to 53.9% now. This was mainly due to the Great Global Recession that started that year and Najib did some pump priming to save Malaysia from a bad recession when he took over.
However, what is lost to those Malaysians in Australia is that the Govt Debt-to-GDP ratio in Australia also jumped since 2008.
In fact, it jumped more – 25% from 11.7% to 36.8%.
Looking at the current trend and the fact that the Australia economy is struggling now due to the slump in commodity prices and reduced demand from China, many believe that this will continue to grow and could overtake Malaysia soon – whereas Malaysia’s ratio has been relatively stable over the past few years.
But the thing is, Malaysia is far from going bankrupt even at 53.9% as at current ratio, there are 71 other countries way ahead of Malaysia in terms of Govt Debt-to-GDP ratio indluign Japan, France, USA, Germany, UK etc.
Also, Malaysia had a ratio of 103.4% in 1985 so if Malaysia did not go bankrupt then, how is it that we go bankrupt now at 53.9%?
