KUALA LUMPUR, Sept 6 — Malaysia is not bankrupt but the government is having a hard time trying to fix the unprecedented triple mess caused by the depreciating ringgit on top of the political and economic uncertainties, Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah admitted today.
The senior government official insisted the country’s finances were still secure with the economy growing at an annual rate of over 5 per cent, which enabled Putrajaya to pay its 1.3 million-strong civil force their monthly salaries.
But he also said the government will be taking measures to tighten its spending, ahead of the tabling of Budget 2016 in Parliament next month.
“To me, the situation now is quite challenging. Never before in the country’s history has political, economic problems and the depreciating ringgit happen simultaneously. There’s much we have to resolve,” he was quoted as saying by national news wire Bernama in its Bahasa Malaysia article, which was inexplicably left out in the English version of the news report.
Mohd Irwan was responding to claims the government was facing bankruptcy, in his speech at the recording of TV Alhijrah’s special talk programme, “Tea Time with the Managing Director of Shell Malaysia, Azman Ismail”, here earlier today, Bernama reported.
Defending the government, he pointed out there were many commodity-dependent economies facing a worse slump in their currencies due to the oil price drop and the strengthening power of the US dollar, and named Australia, Russia and Brazil as examples.
“Currently, our economy is still growing and stronger compared to that during the 1997/1998 financial crisis where it was negative.
“At the moment, we are still able to pay the salary our civil servants. If the country is bankrupt, we will not be able to pay,” he was quoted saying.
Mohd Irwan said the recently-formed Special Economic Committee chaired by Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, was part of the government’s efforts to overcome the current economic challenges.
Prime Minister Datuk Seri Najib Razak will also announce the measures to prop up the country’s finances soon apart from the 2016 Budget that will be presented to Parliament on October 23, the Treasury man said.
“These are among the government’s plans, not all are pretty as each country has weaknesses but we try to increase the good things so that the country’s economy remains strong,” Mohd Irwan was quoted saying.
