Malaysian Economy - Will Malaysia Going to bankrupt?
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Transcript of Malaysian Economy - Will Malaysia Going to bankrupt?
will Malaysia going to
bankrupt?
Is Individual Bankruptcy similar with National Bankruptcy ?
What isBankruptcy ?
Individual Bankruptcy
♪Personal bankruptcy – a person that can’t repay the debts its owes to creditors.
♪National Bankruptcy - The government of a country is an institution like any other, with assets it can spend and debts it must repay. When a national government proves unable to pay its debt, it becomes bankrupt.
SimilarCan’t repay the debts that they owe.
Personal and Corporate Bankruptcy • influence a small group of peoples.
National Bankruptcy • influence whole country citizens• Unemployment rate ↑ • standard living ↓ Economy ↓
National Budget DEFICIT
Malaysia
VS Greece
Temporary bankrupt !
Maybe will bankrupt !
MalaysiaThe Major Problems that may lead
Malaysia going to bankrupt is :
♪Corruption • Ranking 54 in Asia (176coutries) through the
CPI – corruption perception index♪National Debt • now RM519 billion, RM17,721 per citizen
♪Financial Crisis • Property Bubble
GOVERNMENT’S DEBT
The Major Problems that lead Greece to bankrupt is :
Greece
♪Tax Evasion
♪Corruption
♪Government Spending
The Effect of Bankruptcy ♪Lack of Credit♪Public will no longer trust the government
♪Inflation♪Currency will drop drastically
♪Domino Effect♪Effect become bigger and bigger
♪Social & Politic♪Public will go riot
Government effort : ♪Corruption • 1.2% in 2011 rise up to 3% currently
♪National Debt• RM600billion before GE13, now reduce to
RM519billion♪Financial Crisis• Increasing the real property gains tax• Putting on the brakes in home loans• Focusing on low-cost housing• GST 6%
Conclusion
no
Will Malaysia going to bankrupt ??