Monday, January 11, 2010

Oh Fuck! Rumour Turned Reality...

Prior to Najib taking over as Prime Minister, there was this rumour in the financial circle that foreign funds would make a grand exodus if Najib ever become the Prime Minister. Najib did become the PM and today barely a year after taking office, we have the truth right before our eyes.
It was reported that Malaysia's foreign reserves dropped by as much as 25% for the year 2009 alone. Read the complete report 'Malaysia's Disastrous Capital Flight' here.
That's Malaysia, The Bolehland where rumours do come true.
There must be some reasons why funds would want take Najib's appointment as reason to divest . Could it be due to Najib's poor track record? Excessive commission? Lacking Integrityand Credibilty? Or rather simply due to his inability to run this country?
Whatever it is, the damage has been done despite the artificial recovery of the stock market since he took over. Don't be hoodwink by the stock market. The severity behind this mismanaged or rather unmanaged economy has taken us to a point where we are staring at a very dim future.
Our stock market will continue to move. Due to lack of transparency, there have been excessive manipulation. But as soon as the RM10B of Valuecap's allocated fund reaches their pockets, be prepared for another collapse in our financial system. And we would end up as suckers as always. No? What about GST and increase in sugar price? Is that not to burden the citizen to have more money for their so called development laced with super commission?
I do not have much knowledge on the micro side of foreign reserves:p but i do know a drastic drop of this magnitude spells trouble to our economy. More so when we are still under capital control. I really wonder whether our country have enough US dollars for this 25% capital flight. Forget about trade surplus reserves. We are dealing with hard US dollars cash here.
By the way, have you hear about the rumour that Najib cant last two years in office? It's out there at every corner and people are still talking about it. Wonder who started all that? Lets wait and see... Only time can tell.
On my personal take, I would prefer this regime to be brought down totally and preferably in 6 months time before they inflict further damage to an already critical situation that we are facing.
Just my take here. You are allow to agree or disagree with me.


Antares said...

I choose to agree with you, old pal.

ahoo said...

We are always in the limelight for the wrong reasons. Why be well known in the world for things done wrongly and caused irrepairable scares in the history of Malaysia ?

When the going gets tough only the tough gets going was the old adage. My view is that when the Cash gets going, only those with Cash reserved gets going. Save while is it yet possible and when darkness arrives at least we can withstood the long nights !

Terrassie Lau - the Rising Phoenix said...

Of course. Robert Kuok is the first to quickly sold off his baby. They don't call him Sugar King for nothing.
Instantly, those UMNO warlords now hold the monopoly of sugar decided to take the opportunity to increase the price instantly while those days, Robert makes it affordable for all folks,