1 Malaysia Development Berhad (1MDB) is accused of accumulated debt of RM42 billion. 1MDB is a government owned company hence if it actually owed RM42 billion, then what is the magnitude of that debt?
Every rakyat will have to bear an average of RM1,400 (excluding interests). This amount is equivalent to 6% GST paid to the purchase of goods and services worth RM23,333, which is about 10 months of average salary for a newly university graduate.
Malaysian federal government budget expenditure for development in 2015 is about RM50.5 billion, and hence RM42 billion of 1MDB debt is equivalent to 84% of that budget allocation. With that amount of money, Malaysian federal government can allocate it to about 4 times of budget for the Prime Minister Department (RM13.0 billion allocation in 2015 budget), or about 10 times of budget for Ministry of Education and Ministry of Higher Education (RM1.64 billion and RM2.64 billion, respective, in 2015 budget), or about 26 times of budget for Ministry of Health (RM1.60 billion in 2015 budget). In anyone case, Malaysia will surely be better off in terms of its development quality.
The estimated GST revenue in 2015 is about RM23.2 billion, hence 1MDB debt is worth 1.8 times of that revenue. Also, assuming a low cost housing for low income people is worth RM100,000 per unit, then RM42 billion can build 420,000 units that approximately can house 1.6 million to 2.1 million rakyat ( a family of 4-5 people per unit). The beneficiaries are about 5-7% of Malaysian population.
These are a few illustration of the magnitude of RM42 billion that call for serious attention from rakyat. If 1MDB debt is a false allegation, every rakyat will surely be relieved. If otherwise, every rakyat will surely be worse off for having to bear RM42 billion in the coming years.
Every rakyat will have to bear an average of RM1,400 (excluding interests). This amount is equivalent to 6% GST paid to the purchase of goods and services worth RM23,333, which is about 10 months of average salary for a newly university graduate.
Malaysian federal government budget expenditure for development in 2015 is about RM50.5 billion, and hence RM42 billion of 1MDB debt is equivalent to 84% of that budget allocation. With that amount of money, Malaysian federal government can allocate it to about 4 times of budget for the Prime Minister Department (RM13.0 billion allocation in 2015 budget), or about 10 times of budget for Ministry of Education and Ministry of Higher Education (RM1.64 billion and RM2.64 billion, respective, in 2015 budget), or about 26 times of budget for Ministry of Health (RM1.60 billion in 2015 budget). In anyone case, Malaysia will surely be better off in terms of its development quality.
The estimated GST revenue in 2015 is about RM23.2 billion, hence 1MDB debt is worth 1.8 times of that revenue. Also, assuming a low cost housing for low income people is worth RM100,000 per unit, then RM42 billion can build 420,000 units that approximately can house 1.6 million to 2.1 million rakyat ( a family of 4-5 people per unit). The beneficiaries are about 5-7% of Malaysian population.
These are a few illustration of the magnitude of RM42 billion that call for serious attention from rakyat. If 1MDB debt is a false allegation, every rakyat will surely be relieved. If otherwise, every rakyat will surely be worse off for having to bear RM42 billion in the coming years.
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