My name is bond…

29
216

The government has been borrowing billions of ringgit through bond issues.

There are two main types of government bonds: Malaysian Government Securities (MGS) and Government Investment Issues (GII).

Plans were announced for 19 bond issues this year – 12 via MGS and seven via GII. Each issue raises about RM2-4 billion.

For 2010, RM23.3 billion has been allocated to repay part of the Federal Government’s gross borrowings and to finance the 5.6 per cent (of GDP) fiscal deficit.

Last year, 2009, the government raised RM88.5 billion from 19 MGS issues and nine GII issues with an average interest rate of 3.5 per cent. Demand for the bonds was said to be twice the value of the bond issues. Each issue raised RM2.5-4.5 billion. (The above information was contained in a reply to an oral question raised by Anwar Ibrahim in Parliament on 24 March 2010.)

Bank Negara reports that Malaysia’s central government debt (total current liabilities) stood at RM378 billion at the end of the first quarter of 2010, up from RM362 billion in the previous quarter.

Central government debt is different from public sector debt. (Public sector debt includes municipal and local councils and the pension system.) Central government debt is mostly debt incurred in raising money to tackle budget deficits. Most of this debt is raised in capital markets. It is thus marketable and subject to investors’ sentiment.

Meanwhile, our gross external debt (total public and private debt owed to non-residents) stands at RM246 billion in the first quarter of 2010. This includes long-term loans and bonds outstanding in ‘other sectors’ (apart from government, monetary authorities and banks) totalling RM121 billion.

Please help to support this blog if you can.

Read the commenting guidlelines for this blog.
Subscribe
Notify of
guest

29 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments
Husani

Umno(puteras) want discount for anything they want to purchase. I think it is shallow that we only limit it to luxury property. I think to help the Umno(puteras), you need to go across the board and make sure that the 7% discount appears in everything: petrol, first and second-class travel, purchase of cars, airplane tickets, jewellery, necessities like sugar, rice and flour, etc.

We have the BonusLink care, maybe Umno can introduce an UmnoLink card or BumiLink card too….

Sorry, East Malaysian bumiputeras are not eligible for you are supposed to be affluent.

FenceSitter

Bond – a legalised (way) by the gomen to borrow your money without having to pay it back for a long long time.

Ahmad Syafiq

But when that time to repay comes, will we have the money to pay it back?

Ong Eu Soon

If you associate those bonds with the supplementary budgets by the Perak and the Terengganu. You will understand the need of raising those funds. You can bet come the next election, a lot of goodies will be ……… I help you, you help me…….

Ahmad Syafiq

Hmm… it makes sense on what you’re saying Ong. The additional funds obtained by the current BN government in Perak and Terengganu, it explains it. My friend (son of an ADUN) said that their RM2.1 billion budget is based on estimates that the state government will receive the RM600 million in oil royalty from the federal government, promised during the Kuala Terengganu by-election. This is my friend’s statement: “The accounts are answerable to the state assembly. I went to the previous DUN session. The budget is being based on the ‘assumption’ that the Federal Government will pay oil royalty towards… Read more »

Yang

Ahmad Syafiq, So we must not be deceived by them anymore. You want to help me I take it but does not necessary have to help you. This way you will continue to get more help. Its so simple !!! Just like one of my friend who have been a BN supporter all long. He said I have been helping BN all along for so many year but did not get any help. Now I vote opposition and help came along. So he said he will continue with this trend. VOTE OPPOSITION & YOU WILL GET HELP not the other… Read more »

Ahmad Syafiq

Lol. As they say, BN likes to outsource its workpower when it comes to elections. Opposition supporters are paid to put up BN flags all over the place. Then, they use the money to fund the opposition cause. How ironic, isn’t it? ;P Hehe.

pala richie

Anil;

I am from Kampung buah pala, I don’t know much about this Bond fella? and I don’t know what I don’t know.

But these billions’ of borrowing and the chart look too steep, is it. Maybe we have to tell mr. najib and his gang to be carefull with M’sia credit card! cut down the numbers of credit cards, like Malaysian were told!. Cut down the waste, cut down civil service expenses (whihc pay higher than private, and operates like a dam to hold up employment)…

Pearl

Dear Mr. Anil, If the Malaysian government only owes people the bonds they themselves have issued then the problem is minor. If you run a check on other bond markets on the world, like in Japan and London, you would find that the Malaysian government (may) owe _TENS_OF_BILLIONS_ more ! And it is not only the Malaysian government which owes others money. GLCs like Sime Darby, Petronas, and many others also issued a lot of bonds – I lost count on how many, but definitely a hell of a lot – on behalf of the Malaysian government ! If you… Read more »

Pearl

Check the source before you change my post, dear Mr. Anil.

It is not “may owe” but OWES !

There are billions worth of samurai bonds and billions more on the Lloyds of London that carries the word “Malaysia”.

limko1

Time for PR to take control of PutraJaya, to remove OSA and dig up all the old skeletons hidden in the closets over the years and bring the corrupted to book. It is time to unshackle the bond of corruption and abuse of power and bring about a true government that is of the people for the people with sufficient check and balance.

power 2 the ppl

semuanya OK kot – your point then, is keep BN in power?

ajajal

K dont read he is part of the Bond gang .

semuanya OK kot

The two-party system touted as the epitome of democracy has for some time been shaping up like this in “advanced” countries:
– The “conservative” side enriches its cronies and runs the country into the ground.
– The other side is allowed to win, and repairs the damage.
– Before it can build up its own cronies, the “conservatives” take over with the financial help of cronies.

kee

Hi, O, good to see you around… Gerakan K, didnt you read from the news that that Tee fellow has been suspended or sacked, and Liu and even Teng are given notices to attend a “hearing” by DAP. This is called transparency, swift to act on alleged bribery under PR government. Competency indeed !!! Look at BN, everything sweeps under the carpet even evident is as clear as crystal… Their policy is, your scratch mine and I scratch yours, we are all in the same happy family. Brother, cannot close 1 eye on DAP but you are closing 2 eyes… Read more »

wandererAUS

The great minds in UMNO have put BOLEHLAND into a situation of having 10 jars with 8 covers!…always running the nation short of fund. “Where has all the money gone?” KETUANAN SPECIMENS ARE NEVER TALENTED IN THE FINANCIAL FIELD…GIVE THEM A GOLD MINE, THEY WILL TURNED IT INTO A … MINE!…

Eloi

“Bank Negara reports that Malaysia’s central government debt (total current liabilities) stood at RM378 billion at the end of the first quarter of 2010, up from RM362 billion in the previous quarter”.

An approximate 16 billion increase in one quarter!
What is PM Najib doing to incur such a debt?
Too bad this current government is not as ‘transparent’ or we would have known about it. As such, there is no relevant information for us to ‘share’ our thoughts. 🙁

Razali

BN government asked people not to borrow from Along.

Yet the 1malaysia PM is not setting good example. He himself is borrowing big time to burdent the next generation.

O

James Bond…. Very soon, bonds sold to investors in the Middle East, USA and Europe are allegedly to be backed by the best hospitals in Malaysia as collaterals. One of the reasons to increase the rates at hospitals which are patronized by the poor Rakyat. Next, James Bond will (perhaps) visit EPF and again the Government will issue bonds to its contributors. Yes, you are right, Anil, my name is bond…. James Bond. It is only a matter of time when the Government starts issuing bonds to EPF contributors if irresponsible spendings and corruptions are not tackled. It is only… Read more »

Ganesh

Sort corruption first. Once corruption is sorted, there will be ample supply of money.

If corruption is not tackled, the wealth goes to a few pockets only. If there is no corruption, wealth can flow into everybody’s pocket.

Billions are lost here and there and only a handful are getting richer.

Yang

And what happen after that. YOU NEED TO BOND

tunglang

We may need to BOND OUR NATION to other nations!

And for Malaysia to break the inpending bond,
will have to overcome its weaknesses which may take another 30 years, taking into account national debts, 2 new generations of competitive human resource development, reform of downsliding education system, corruption & lackadaisical, bloated civll service, empowerment of SMIs & SMEs into competitive global players, and fair and equitable distribution of wealth among the Rakyat.

Are we prepared to do that?

Gerakan K

Yes, I agree. So we must solve the DAP Selangor alleged scandal.

We must not close one eye on DAP.

Ahmad Syafiq

Why are you so bent on focusing on only DAP Selangor’s ALLEGED SCANDAL? You treat as if because of them, we lost like billions of RM to so-called corruption. CORRUPTION is always an issue at all levels. It would have been a more fair/middle ground comment if you had said that we should check corruption at federal level, as well as state level. At least DAP are addressing the alleged scandal involving Tee and Ronnie, unlike you lots who chose to close one eye on corruption committed by BN after all these years. But then again, I’m afraid it’s hard… Read more »

Pearl

DAP is as bad as UMNO. Not worse, as bad.

I have respect for PAS but never for DAP.

Ahmad Syafiq

Lol, for me, personally, PAS is the best option. ;P Hehe.

Razali

Hello K

Let’s settle the big fish corruption in PKFZ fiasco first!!!

Yang

Not just that, let us also settle who kill Altatunya