blogtunm.blogspot.com Tun M
1. Malaysia is famous for having huge savings.
2. Apart from the reserves held by Bank Negara amounting to more than USD100 billion (RM500 billion) we have RM1 trillion investment assets with Employees Provident Fund (EPF), over RM300 billion assets under management in Permodalan Nasional Berhad (PNB), more than RM80 billion deposit savings with Tabung Haji and the pension fund, KWAP has almost RM150 billion. We have in fact more than one trillion Ringgit in savings.
3. At the same time we have huge debts incurred during Najib’s tenure as Prime Minister and now the additional amounts in Government funds for projects, subsidies and free gifts. We have a lot of debts.
4. Most of our savings are invested in US bonds. We cannot get back the money easily. The US has a reputation of not giving back the money lent to them or deposited with them.
5. So much of Government fund had to be used to service the loans. This results in more deficits. The debts remain as a burden. We have to service the debts with several billions every year.
6. So why are we saving money when we can pay our debts and reduce our financial burden.
7. Why are we lending money from our savings to the US and get little return from it.
8. Why must we hold so much money as reserves in USD.
9. Why must we have so much money as reserves.
10. These are the questions that the Government must ask itself.
