Malaysia could still face bankruptcy, Idris Jala warns

By Debra Chong | November 01, 2011

KUALA LUMPUR, Nov 1 — Datuk Seri Idris Jala said today that Malaysia could still become bankrupt within a decade if it spends borrowed money on operational expenditure such as subsidies instead of investing the cash.

^ Yang Berhormat Senator Datuk Seri Idris Jala is the CEO for Pemandu

“If our economy grows less than four per cent… and we don’t cut our operating expenditure, if we borrow at 12.5 per cent, if our annual debt rises to 12.5 per cent and our revenue does not grow, then it will happen,” Idris (picture) said today after announcing the latest investment updates for the government’s economic transformation programme (ETP).

The performance management minister triggered alarm bells with his controversial bankruptcy forecast last year.

Malaysia’s national debt rose by 12.3 per cent to over RM407 billion last year, according to the Auditor-General’s latest report released last week.
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