Press Digest - Johari refutes claims country is on the verge of bankruptcy

PETALING JAYA: Second Finance Minister Datuk Johari Abdul Ghani has refuted fresh claims that Malaysia is on the brink of bankruptcy which cropped up following the weakening of the ringgit amid growing global economic gloom.
He questioned the logic behind the doomsaying when "the country's economy is growing every year".
"If we really are going bankrupt, there won't be any foreign investors coming to invest in Malaysia," Johari was quoted by Oriental Daily News as saying in an interview published today.
He pointed out that Malaysia's foreign direct investment has maintained sustained growth.
"In spite of rumours like this (country going bankrupt), Malaysia's political situation remains stable," he said.
He said the government will rationalise its expenditures and broaden the tax base to help it tide over the lean times.
On the allegation that the country is deep in debt, Johari said "this is not true".
He explained that the level of Malaysia's national debt, at 54% of gross domestic product (GDP), is not high compared with other countries, such as Japan which is at 170% of GDP, the US (123%) and Singapore (89%).
Nevertheless, he said the government has to take measures to ensure the country maintains its growth rate as well as enhance new sources of income.
The government needs to focus on expenditures that yield high returns.
Johari also refuted allegations the country is experiencing an economic crisis, saying the current situation should be interpreted as a period of fluctuation.
"We are not in the midst of a crisis. The current situation is more like volatility, and not a crisis."
He said the government will take pro-financial market measures to ensure the ringgit recovers gradually, so as not to affect any markets or trading activities or undermine public interest and the economic systems.
To a question, Johari declined to predict the country's growth rate in five years, saying he is not a clairvoyant.
"In fact, no economists can foresee what economic changes will take place in five years."
On the ringgit, Johari said it will quickly regain lost ground once the prices of global crude oil and liquefied natural gas recover.