The article said:
The amount of notes to be offered will be in the region of “billions” of dollars, said the official, who declined to be identified because the deal is still being finalized. Europe’s debt crisis isn’t a concern to the Malaysian government, he said.I am very surprised at the many sudden developments. Just two days ago, the government indicated it plans to go ahead with the eventual introduction of the unpopular Goods and Services Tax (GST). I blogged about that HERE.
Prime Minister Najib Razak said April 6 that Malaysia may sell Islamic bonds, securities that comply with the religion’s ban on paying or receiving interest, in the U.S. currency. The official commenting today didn’t disclose if the sale will be of the sukuk type.
Malaysia last sold overseas notes in July 2002, issuing $600 million of five-year sukuk bonds. A new sovereign will provide a new benchmark for pricing international debt in Southeast Asia’s third-largest economy as the nation diversifies sourcing to finance a budget deficit that was 7 percent of gross domestic product in 2009, the widest in 22 years. CLICK HERE for more.
Today, Malaysian Insider reported HERE that the government confirmed yesterday that it was considering awarding a licence for sports betting ahead of the 2010 Fifa World Cup in June, in what is seen as a move to boost flagging revenues.
And now, Bloomberg has released this report about the proposed sale of 10-year dollar denominated bonds. My question is - are we in such dire straits that the authorities have to resort to such measures to fill the coffers? If indeed we ware scrapping the bottom, then why did they go footloose and fancy free during the HS by-election? Will the same pattern of disbursing millions occur at the forthcoming by-election and will the rakyat be the ones to pay for it through our noses?
Will there come a time when our wallets are so light that we can practically see it floating away from our pockets before our very eyes ?
Note that there is absolutely no mention of the objective of the proposed sale of these bonds in the article.
If indeed Malaysia’s "economic indicators are very strong now" (as stated in the report), what is the real and genuine purpose of the sale of these bonds? Do they expect us to believe this blinkered view and hope that the public will buy this story to help THEM to raise $$$$ and then to give them the license to blow it away at by-election after by-election?
WOULD YOU BUY THIS BOND????
So do you think we are in dire straits? When will our leaders face reality and tell us the truth?
Or is it such a painful disclosure that they would rather avoid?
Catherine When will our leaders face reality and tell us the truth?
We can just dream!