Little are being said about the Fitch Ratings which recorded a negative
outlook for Malaysia in its latest report. It is important to note that
the ratings have a great impact on the perception of foreign investors
whereby keeping a good rating is important in order to sustain the
country’s competitiveness.
The negative report on Malaysia is technically a ‘side-effect’ from the
global market trend which is greatly affected by the uncertainties and
instability in the oil-producing countries.
Apart from that, Fitch stated that Malaysia’s ‘lack of reform’ to tackle
rising debt is stated as one of the factors that caused a negative
outlook on the country’s sovereign credit rating. The country’s
widening fiscal deficit of RM14.9 billion plus high government debt of
53 percent of gross domestic product have also contributed to the fall
in the ratings.
Fitch believes that Malaysia would hardly achieve its interim three per
cent deficit target for 2015 without consolidation measures. The public
finances have also worsened since the government’s weak showing in the
May 2013 general elections.
Fitch has long emphasised two key budgetary vulnerabilities: reliance on
petroleum-derived revenues and the high and rising weight of subsidies
in expenditure. It is estimated that petroleum-derived revenues
contributed 33.7 per cent of federal revenues in 2012.
Should the government not take any drastic measure to tackle the effect,
it may lead to outflow of foreign capital and result in higher
borrowing costs for the country.
Since the government has the responsibility to ensure the well-being of
Malaysians in all walks of life, an unpopular decision to rationalize
subsidies on fuel prices was announced earlier this evening. The
announcement was received with an immediate outcry - as expected.
But Malaysians must understand that the rationalization of fuel
subsidies would help push a positive outlook on Malaysia, thus encourage
foreign investment into the country. A good outlook is vital at a time
when the world is seeing nothing but the fall of Islamic countries – one
after another.
The allocation meant for subsidies could then be used for projects with
long term benefits, particularly development, emphasising on rural areas
including Sabah and Sarawak.
This would help boost Malaysia’s economy, as well as improving the
quality of lives of the rural communities. Apart from that, the
government has also projected a higher BR1M amount for the low-incomes,
to help them cope with the rising cost of living.
With that, the people would not be greatly affected while Malaysia
picks-up speed in its quest to become a high-income nation very soon.
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3 comments:
Di mana "Aku Janji"Najib semasa berkempen di Pekan?Harga minyak tidak akan naik dalam penggal pemntadbiran beliau selepas pilihan raya.Never we had a corward Prime minister,who does not gives any comment on issues affecting the social structure of Malaysian,such as the stupid demolition of surau in Johor,Minister appointing their sons and cronies as special officer and many other things.This Prime minister is a "LALANG".Riding on his father's so called legacy.
Did the leaders also doing the same thing? What did they sacrifice?
Do they dare to pay all the expenses i.e. fuel, taxes, tolls etc as normal people does?
Don't be a full-foolish hypocrisy!
bila masa najib buat aku janji harga minyak takkan naik.....bodoh betul la kamu
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