Thursday 15 December 2011

Illegal capital flight dwarves capital inflows


Scary story in Malaysian Insider of today:

http://www.themalaysianinsider.com/malaysia/article/malaysia-rises-in-illegal-money-chart-rm150b-lost-in-2009/

  • Malaysia lost RM150 billion in illicit outflows in 2009, the fourth highest in the developing world
  • Malaysia has lost a total of RM1.08 trillion (RM 1,080,000,000,000 or about RM 40,000 for every Malaysian) in illicit financial outflows over the first decade of the century
  • The volume of illegal capital flight from Malaysia has come to dwarf legitimate capital inflows into the country in recent years

The numbers mentioned are simply unbelievable large. I hope Bank Negara can soon come with some answers:

  • Are the above numbers (roughly) correct?
  • Where does all this money come from, who are the perpetrators?
  • What is being done to rectify this situation?
  • What is the effect on the Malaysian economy?

The original report can be found here:

http://iff-update.gfintegrity.org/

"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."

5 comments:

  1. I think this should be near to the actual number. We all knows how corrupted our BN are. Besides that Malaysia is a heaven for underground business like smuggled cigarette, pirated dvds, underground gambling.

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  2. Cigarettes, dvd's, gambling, may be, but I would think in billions not in trillions.

    If you look at the last link, lots of oil & gas exporters.

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  3. Fun stuff M. Thanks to K for sending me your blog URL. I just started equity trading 60+ days ago, and have lots to learn.

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  4. Huh! That means they steal our beloved Petronas's goods? What the hell? BN how dare you do it! Come on Petronas already give you so much!

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  5. Hi jerng, success with your trading. Dali from MalaysianFinance was one time looking for somebody like you, was quite some time ago but may be still interested?

    Imenwe, I really hope there will be a truly independent commission of credible people who will investigate this.

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