Minister in the Prime Minister Department, Paul Low blames trade mispricing for the RM174 billion siphoned out illegally in 2011. This is not only an untruthful attempt to twist the facts but also a desperate attempt cover up the rampant corruption under Barisan Nasional rule.
Global Financial Integrity (GFI) has stated clearly in their annual report this year that they have adjusted for the ‘Hong Kong effect’ in estimating trade-mispricing by Malaysian Traders.
GFI has used the exports data published by the Hong Kong Census and Statistics Department that breaks down re-exports to and from Hong Kong and Malaysia to address the re-exporting issue, making this the most reliable and accurate report from GFI to date. When Malaysia net error and omissions (NEOs) are persistently negative at an astronomical amount, it is absurd for Paul low to attribute this astronomical amount to trade mis-pricing and illegal money transfers by foreign workers.
Among the list of world largest countries by exports, Malaysia is ranked at 22 behind countries like United States, Germany, Japan, France, South Korea and Netherlands. How is it possible that Malaysia which has a trade export which is 5.8 times smaller than the United States has a larger net error and omissions (NEOs) than the United States?It is clear that trade-mispricing alone is not able to explain this astronomical gap and the only sensible explanation is corruption and illegal capital flight.
Paul Low should stop being in denial mode by rubbishing the latest annual report by Global Financial Integrity and propose financial reforms to avoid further illegal capital flight. Paul Low latest denial also proves that Najib administration has no political will to fight corruption and address the continuous illegal capital flight from Malaysia.
This astronomical amount illegally siphoned out from the country annually would have serious and damaging implications on Malaysia’s economy.Malaysians need Malaysian wealth to stay in Malaysia especially in a period where our national debt to GDP ratio is at an all-time high level almost breaching the statutory debt ceiling of 55%.
Media Statement by Chong Zhemin, DAP Perak Economic Development Bureau Chief and Political Secretary to Taiping MP on the 13th Dec 2013