Malaysia Is Not "Going Bankrupt" | Current Deficit 5.4%

I'm not fluent in economic study. But when I read about Malaysia is not "going bankrupt", I think it kinda interesting. So I won't comment about this. I just copy and paste the original article and share it and you may have your opinion about it.

BATU PAHAT: The Opposition’s claim that the Government is going bankrupt due to its huge deficit is unfair, as a country’s wealth should not be measured in terms of its debt but ability to service it.

MCA president Datuk Seri Dr Chua Soi Lek said that Malaysia’s budget deficit to GDP ratio was 5.4%.

“For countries like Greece, the percentage was 12%,” he said when met at his Chinese New Year open house here yesterday.

He said Prime Minister Datuk Seri Najib Tun Razak had promised to reduce the deficit to 5.2% this year.

Dr Chua further reiterated that Malaysia was not facing bankruptcy due to the strengthening of the ringgit as well as the huge inflow of foreign direct investment into the country last year.

“The strengthening of our currency as well as the huge inflow of investment will not be happening if the country was bankrupt or facing bankruptcy,” he added.

On the Chinese New Year celebrations, he said that generally there were huge crowds everywhere.

“The economy has recovered and every sector has achieved respectable economic growth.

“As such people are more optimistic and confident about the future of the country,” he said, adding that the MCA open house in Kuala Lumpur on Thursday had attracted a huge crowd.

Source: The Star Online