KUALA LUMPUR: Donations to the national debt relief fund, Tabung Harapan Malaysia, are likely to be used to service government debt with earlier due dates, says a research analyst.
Up to Thursday, the fund has collected RM66.67 million.
RHB Research Institute Sdn Bhd’s chief Asean economist, Peck Boon Soon, said the fund could possibly contribute to the 1Malaysia Development Bhd bond interest of RM810.21 million due between September and November this year.
“Although the fund size is small when compared to the massive debt amount, I am confident that it will be spent on debt settlement rather than any other purpose, as the crowdfunding movement is purely a patriotic manoeuvre that shows the people’s support for the government,” he told Bernama.
There has been criticism over the real “motive” behind the launch of the THM on May 30, 2018. But Prime Minister Dr Mahathir Mohamad made it clear that the initiative, was aimed at reducing the national debt and formed in response to the people’s concern over financial mismanagement by the former Barisan Nasional government.
Peck noted that Malaysia was not the first country to launch such an effort at the national level. South Korea had initiated a similar campaign during the 1997/98 Asian Financial crisis or IMF (International Monetary Fund) crisis to the locals.
Asked if the government should set a timeline or fund target to provide a clearer guidance for the people to “save the country”, Peck reiterated that the donation was merely a campaign of patriotism.
“Furthermore, Finance Minister Lim Guan Eng had mentioned earlier that there would be no cap on the limit to donations, and the fund size would continue to expand as time went by,” he added.
Lim had stated that the government’s debts and liabilities comprise RM686.8 billion in federal government debt and RM199.1 billion in government guarantees on debts undertaken by other government entities.
Donations to Tabung Harapan may be made through deposits at Maybank account 566010626452. Tax exemptions would also be given to all donors, including companies.
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