Government should analyse impact of contingent liabilities, include estimates in budget

PETALING JAYA: The government should conduct sovereign contingent claims analysis and include the estimates in the budgetary process, said Sunway University Business School Professor of Economics Prof. Dr Yeah Kim Leng.
"I think the government should conduct that kind of sovereign contingent claims analysis so that we can estimate and include it in our budgetary process for those contingent liabilities that may crystallise in the future, and of course take measures to address them before they happen," he told reporters at the sidelines of Rehda Institute's Budget Commentary 2017 today.
He said these analysis are important given the large number of mega projects that need to be well coordinated in order to avoid a lumpy impact on the economy.
"It is important to sequence it properly so that there is no sharp increase in our debt that will derail our fiscal soundness," he added.