Bank Negara Malaysia (BNM) issued a statement yesterday saying the introduction of the GST will remove trade mispricing issues widely blamed for Malaysia RM174 billion illicit capital outflow in 2011.
This is the most irresponsible and misleading statement by BNM not only to justify the implementation of the GST but also to confuse and mislead ordinary Malaysians that GST will miraculously solve the country’s illicit capital outflow.
Putrajaya cannot hide behind the “trade mispricing issue” and continue to ridicule and belittle the GFI report that Malaysia has lost RM174 billion of illicit capital outflow in 2011.
If Putrajaya wants to attribute the “trade mispricing issue” to Malaysia’s high trading volume, then the relevant questions Putrajaya must answer is, “Why is it that the United States which has a trade export of 6.5 times higher than Malaysia does not have “trade mispricing issues”?
Countries like United States, Germany, Japan, France, South Korea and Netherlands all have higher trade volume than Malaysia but none of them have “trade mispricing issues”. Continue reading “Najib should stop using Bank Negara Malaysia as a political tool to mislead and confuse the people”
On Saturday, Minister in the Prime Minister Department, Paul Low responded to the annual report by Global Financial Integrity by saying, “They are just telling the figures without a solution. Like someone telling your temperature, and then you have to figure out whether to take penicillin or something else.”
Paul Low is not only clueless and ignorant but he must be sleeping on his job as a minister for the past seven months, not being able to come up with a solution to Malaysia illicit capital outflow. The illicit capital outflow is not a recent problem as the world has been made aware of Malaysia notorious ranking as world number two in illicit capital outflow in 2010 as reported by GFI in December 2012.
If Paul Low wants to rely on GFI to come up with a solution to Malaysia illicit capital outflow problem, he might as well give up his ministerialship perks and rewards to GFI as he should be the one responsible to come out with a solution. Continue reading “For the past seven months Paul Low must be sleeping on his job not being able to come up with a solution to Malaysia illicit capital outflow problem”
Minister in the Prime Minister Department, Paul Low tried to do some damage control and “window dressing” on the latest annual report published by Global Financial Integrity(GFI) that estimated an outflow of RM173.84 billion of illicit capital from Malaysia.
Paul Low had said the following, “It is not that I am in denial. GFI itself in its report said that trade misinvoicing make up about 80 percent of illicit outflow on average, while the remainder 20 percent is hot money.
“My rough estimate is that corruption makes up about 3 percent of that hot money (20 percent of RM173.84 billion), which includes underground criminal activities like drug smuggling and trafficking,” he said.
I have rebutted Paul Low argument in a statement yesterday, that trade misinvoicing could not have made up 80 percent of illicit outflow since countries that have higher trade export like United States, Germany, Japan, France, South Korea and Netherlands had a smaller net error and omissions (NEOs) than Malaysia.
However, let us give Paul Low the benefit of doubt and take his estimation at face value. Based on his estimation, Malaysia has lost RM33.72 billion to underground criminal activities and RM1.04 billion to corruption. Continue reading “Paul Low’s effort to damage control and “window dress” could not hide the fact that a staggering amount was lost through underground criminal activities and corruption”
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. Continue reading “Paul Low attempt to blame trade-mispricing for the estimated RM174 billion siphoned out illegally in 2011, is not only untruthful but a desperate attempt to cover up the rampant corruption under Barisan Nasional rule”
Washington-based financial watchdog Global Financial Integrity (GFI) in its latest annual report ranks Malaysia as world number four in the world’s top 10 countries of illicit capital outflow coming behind Russia, China and India. USD 54.18 Billion was siphoned out of Malaysia in 2011. This astronomical amount is alarming but does not come as a surprise since Malaysia was ranked number 2 in the 2010 ranking with USD 64.38 Billion of Illicit capital outflow.
If calculated on a per capita basis, Malaysia illicit capital outflow is still world number one in 2011 at USD1,852.94 per capita, ahead of Russia USD 1,331.99 per capita, China USD 112.03 per capita and India USD 68.66 per capita.
In fact, in this year annual report GFI has addressed the re-exports from Hong Kong in estimating trade misinvoicing by Malaysian Traders making this year report more accurate and reliable. This would mean that Malaysia illicit capital outflow in 2011 could potentially be a larger sum than in 2010. Continue reading “Malaysia Tops illegal capital outflow per capita – the bleed must stop”