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  1. #1
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    Malaysia a failed state ?

    following is from the blogworld ....................

    Malaysia a failed state – The writings are on the wall?

    Greg Lopez
    January 22nd, 2011

    A good wager to make on Malaysia would be: if it would become a high income economy by 2020 or a basket case.

    A report by Global Financial Integrity ranks Malaysia as the world’s no. 5 in illicit financial outflows, topping countries such as Nigeria, India and its neighbours such as Myanmar:
    Top 10 countries with the highest measured cumulative illicit financial outflows between 2000 and 2008 were:
    1. China: $2.18 trillion
    2. Russia: $427 billion
    3. Mexico: $416 billon
    4. Saudi Arabia: $302 billion
    5. Malaysia: $291 billion
    6. United Arab Emirates: $276 billion
    7. Kuwait: $242 billion
    8. Venezuela: $157 billion
    9. Qatar: $138 billion
    10. Nigeria: $130 billion
    Malaysiakini has further analysis of this report:
    The report warned that the sharp increase of capital flight in Malaysia is “at a scale seen in few Asian countries”.
    It said that it was difficult to point out the reasons behind this massive outflow of illicit capital – estimated at RM889 billion (US$291 billion) between 2000 and 2008 – without carrying out an in-depth study of Malaysia, which is outside the scope of the report.

    “It is clear however that significant governance issues affecting both the public and private sectors have been playing a key role in the cross-border transfer of illicit capital from the country.

    “For instance, there are reports in the Malaysian media that large state-owned enterprises such as Petronas could probably be driving illicit flows.”

    The financial watchdog said that its research has indicated that political instability, rising income inequality and pervasive corruption are some of the structural and governance issues that could be driving illicit capital from many developing countries.

    “In the case of Malaysia, the additional factor could well be the significant discrimination in labour markets which move people and unrecorded capital out of the country.
    Despite attempts to “reign in corruption” by the government, corruption has actually worsened, as Lim Kit Siang points out:
    In the first TI CPI in 1995, Malaysia was ranked No. 23 out of 41 countries or the 6th highest-ranked nation in the Asia-Pacific after New Zealand -1, Singapore – 3, Australia – 7, Hong Kong – 17 and Japan – 20, with a CPI score of 5.28.
    Sixteen years later, after numerous anti-corruption campaigns, two major anti-corruption legislation and “transformation” of the former Anti-Corruption Agency (ACA) into Malaysian Anti-Corruption Commission (MACC) with massive infusion of public funds and increase of staffing, Malaysia has continued to remain in the lowest TI CPI ranking of No. 56 as last year but with the lowest CPI score of 4.4 – falling to No. 11 country placing in the Asia-Pacific.
    Malaysians disgust with the current ruling coalition and its weak leadership has lead to a loss of confidence in the country as manifested by “brain drain“, drop in foreign direct investment and now this report of outflow of funds.

    It is likely that the bets are on Malaysia becoming a basket case rather than a high income economy by 2020.

    asiapacific.anu.edu.au

  2. #2
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    Seems a pretty lame argument when the country it borders is Thailand.

    Just cross the border and see the infrastructure, luxury cars, general standard of organisation, and education in this, erm, failed state.
    Or cross the border in the other direction and see the amount of Malysians crossing with you for a cheap shag in Had Yai.
    probes Aliens

  3. #3
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    Financial flows from Malaysia have more than tripled from $22.2 billion in 2000 to $68.2 billion in 2008. This growth rate, seen in few Asian countries, may be a result of significant governance issues affecting both public and private sectors.

    Global Financial Integrity - Reports - Illicit Financial Flows from Developing Countries: 2000-2009 - Overview

  4. #4
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    Im not sure if the authers of this report have a clue what they are talking about.

    What do they mean by "illicit financial outflows" ?

    Trade surplus countries with the US reinvest dollars they get from exports into US debt instruments. "illicit financial outflows" ? Hardly, either the author doesn't have a clue or he needs to explain his point allot better.

    I just found it odd that allot of the countries in the authors list match trade surplus countries with the US.


    Top ten countries with a trade surplus with the US

    China -25,634.18 -252,384.02
    Japan -5,794.32 -53,902.25
    Mexico -5,616.50 -61,642.86
    Federal Republic of Germany -3,096.22 -31,214.40
    Ireland -2,312.06 -24,012.86
    Saudi Arabia -2,105.73 -18,068.24
    Canada -1,752.06 -24,411.51
    Nigeria -1,748.65 -23,951.84
    Russia -1,667.43 -18,314.32
    Venezuela -1,579.77 -20,119.25

  5. #5
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    Who can say what will happen to any economy 8 years into the future?

  6. #6
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    Quote Originally Posted by socal
    he needs to explain his point allot better.
    Quote Originally Posted by socal
    I just found it odd that allot of the countries in the authors list
    There is a word "allot" but that is not the correct usage.
    Can you understand your mistake or do I need to explain it a lot better ?

  7. #7
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    Yes, what is defined as illicit in this case, because jfc, China has quite a large lead on everyone else!

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