Malaysia is not on the verge of bankruptcy despite ringing up a national debt amounting to 53 percent of the national gross domestic product (GDP), said MCA Youth chief Wee Ka Siong.

He pointed out that those familiar with economics and finance would know there are more pros than cons to have a deficit fiscal budget to deliver economic growth so long as it is kept at a manageable level.

NONE "A noted economist from England, John Maynard Keynes, who founded the Keynesian Theory, said that when a country is facing an economic downturn, or when there is an economic slowdown in other countries, a deficit budget can be applied to increase demand in the country through economic and infrastructure developments.

"Our government is implementing an economic policy based on this Keynesian Theory. A deficit budget is not a new thing. It is not something which has never been used before in history," he said during his opening speech at the MCA Youth annual general meeting (AGM) today.

Wee said that while Pakatan Rakyat claimed Malaysia is on its way to bankruptcy, they failed to mention that Japan's national debt is 211 percent of GDP, 118 percent for Singapore, 85 percent for United Kingdom, 81 percent for Germany, and 67 percent for  theUnited States.

"These are the same countries that are greatly admired by Pakatan leaders.

"So if they say that Malaysia is moving towards bankruptcy then these ‘model' countries have long since been bankrupt," he said, while acknowledging that there is still room for improvement for Malaysia's economy.

Wee added that World Finance Magazine would not have named Bank Negara governor Zeti Akhtar Aziz as the best central bank chief for four consecutive years if Malaysia's economy is not in a healthy financial state.

Pakatan, too, has deficit budget

The Ayer Hitam MP also pointed out that Pakatan's alternative budget shows a 3.5 percent deficit, while Selangor Menteri Besar Khalid Ibrahim's successive budgets are also in the red.

"It is undeniable that Pakatan is responsible for spinning economic issues and manipulating certain statistics to scare the rakyat," he said.

Meanwhile, he urged the government to take concrete action on Malaysians' other great concern - the rise in crime.

"The rakyat are not interested in crime rates and statistics announced by the government. These numbers do not help solve the problem and in fact the rakyat do not trust the numbers.

"What they need is to feel safe in their homes, when they are walking to their cars or on the street," he said.

Therefore, he said the government should take "real action", including increasing the efficiency of the police force, instead to blaming the media or social media for playing up crime issues.

 

azlan