will Malaysia going to

bankrupt?

Is Individual Bankruptcy similar with National Bankruptcy ?

What isBankruptcy ?

Individual Bankruptcy

♪Personal bankruptcy – a person that can’t repay the debts its owes to creditors.

♪National Bankruptcy - The government of a country is an institution like any other, with assets it can spend and debts it must repay. When a national government proves unable to pay its debt, it becomes bankrupt.

SimilarCan’t repay the debts that they owe.

Personal and Corporate Bankruptcy • influence a small group of peoples.

National Bankruptcy • influence whole country citizens• Unemployment rate ↑ • standard living ↓ Economy ↓

National Budget DEFICIT

Malaysia

VS Greece

Temporary bankrupt !

Maybe will bankrupt !

MalaysiaThe Major Problems that may lead

Malaysia going to bankrupt is :

♪Corruption • Ranking 54 in Asia (176coutries) through the

CPI – corruption perception index♪National Debt • now RM519 billion, RM17,721 per citizen

♪Financial Crisis • Property Bubble

GOVERNMENT’S DEBT

The Major Problems that lead Greece to bankrupt is :

Greece

♪Tax Evasion

♪Corruption

♪Government Spending

The Effect of Bankruptcy ♪Lack of Credit♪Public will no longer trust the government

♪Inflation♪Currency will drop drastically

♪Domino Effect♪Effect become bigger and bigger

♪Social & Politic♪Public will go riot

Government effort : ♪Corruption • 1.2% in 2011 rise up to 3% currently

♪National Debt• RM600billion before GE13, now reduce to

RM519billion♪Financial Crisis• Increasing the real property gains tax• Putting on the brakes in home loans• Focusing on low-cost housing• GST 6%

Conclusion

no

Will Malaysia going to bankrupt ??