About a quarter way through the tabling of Budget 2017 at the Dewan Rakyat today, Najib took a moment to address “the misconception and misperception that the government will go bankrupt”.
“In this regard, I would like to clarify that a government will be declared bankrupt only if it is unable to pay off its debts.
“There are three reputable international rating agencies, namely, Fitch, Moody’s and Standard & Poor’s.
“The ratings and reports from these rating agencies are accepted in assessing a country’s ability in paying off its debts,” Najib said.
He then compared Malaysia’s ratings with that of our Asean neighbours and larger economies in East Asia.
“Fitch had rated Malaysia with A-, while Philippines are rated BBB-, Thailand BBB+ and Vietnam BB-.
“In fact, our rating is similar to that of advanced and larger economies such as Republic of Korea (AA-), China (A+), Taiwan (A+), Japan (A),” Najib said, then mocking his critics by declaring that “bankruptcy is never in Malaysia’s economic dictionary”.
About the second allegation, that Malaysia is heading towards becoming a failed state, Najib simply took on the opposition by giving the exact definition of the term.
“Let me clarify the meaning of a failed state. It refers to a country that fails to implement most of its responsibilities and basic functions of a government,” he said,
He explained that such a state of failure in the country would include a state of total anarchy without any law and order, the failure of the government to pay salaries to civil servants, and the lack of amenities, such as water and electricity, among other basic necessities.
“These characteristics do not exist in Malaysia and with the blessings of Allah, this Government will never allow our country to become a failed state,” Najib said in an obvious dig at DAP supremo Lim Kit Siang who has long claimed the country was heading towards becoming a failed state under Najib.