Friday, March 13, 2015

To All Malaysia's Prophets Of Doom: Here's From The Godfather ( IMF) Of The Global Economy

Hantu Laut

I am not going to say much about 1MDB in relation to the overall performance of the economy, but as long as it stays afloat the Malaysian economy will not be seriously affected. 

The fundamentals are still good.  

PM Najib should not be too happy, the political situation will not change until there is some semblance of radical transformation of good governance.

Below is a review of the 2014 Malaysian economy by IMF.

1 comment:

Satu Malaysia said...

1MDB has to go for an IPO to solve a massive cah-flow problem. The 2nd Finance Minister said so. It would be a sick joke if it were not deadly serious. Companies go for IPO's for future expansion, to share risks and opportunities with the public -not to solve cash flow problems. That is a sure way to get the IPO into a deep mess.

RM 3 Billion of 1MDB's debts are explicitly Government-guaranteed - that means if 1MDB cannot pay , the taxpayer - you and me - has to pay.
Another RM 37,000,000,000 of 1MDB debt is implicitly guaranteed by the Government of Malaysia, as far as the Market is concerned. 1MDB is 100 percent owned by the Malaysian Government.
If 1MDB defaults on a substantial part of its debt, the next morning the Ringgit will sink like brick, because the market will consider that Malaysia, as a nation is unwilling or unable to back up a 100% sovereign owned entity.

Try to Imagine the impact of RM 6 to 1 US Dollar.

What do you think will happen to Malaysia's fundamentals? ?