which is about 65 % of GDP.
i know, he did some spins about the figure after that but that's just sounded lame to me.
That's why the former finance minister,
So, based on the report today, Moody's has confirmed that Najib was right and Guan Eng was wrong about the national debt.
It's not RM1 trillion as claimed but a reasonable RM686.8 billion or 50.8 per cent of GDP.
Let's compare that to my favourite foreign country Japan.
The Japanese public debt exceeded one quadrillion yen or about US$10.46 trillion in 2013, more than twice the country's annual gross domestic product. By 2015, the figure rose to US$11.06 trillion. As the country adopted key economic initiatives, this figure start to dip so that by the end of December 2017, the debt stood at US$9.94 trillion.
In August 2011, Moody's rating cuts Japan's long-term sovereign debt rating by one notch to Aa3 from Aa2 in line with the size of the country's deficit and borrowing level. The large budget deficits and government debt since the 2008-09 global recession and followed by earthquake and tsunami in March 2011 contributed to the ratings downgrade. In 2012 theOrganization for Economic Cooperation and Development (OECD) Yearbook editorial stated that Japan's debt "debt rose above 200% of GDP partly as a consequence of the tragic earthquake and the related reconstruction efforts." Due to the ballooning debt, former Prime Minister Naoto Kan called the situation "urgent." Indeed, by 2014, Japan had the world's highest debt per GDP.
Well, compared to Japan's, I think Malaysia's debt is not so bad.
Maybe this is not such a good idea
That's because the Japanese public debt is up to 200% of their GDP while ours is only at 50.8 per cent of our GDP.
Maybe the economists among readers of this blog may want to comment....how?