Friday, March 28, 2008

Finance Minister II: Were You Lying?

During the election campaign period, despite turbulence in the global economy, particularly in the United States, despite economy all around the world - UK, EU, Singapore and Hong Kong - cutting growth forecasts, the Second Finance Minister, Tan Sri Nor Mohamed Yakcop insisted that the economy will grow at between 6% to 6.5% in 2008 as forecasted in the 2008 Budget announced by the Prime Minister in September last year.
The country's economy is projected to grow at between 6% and 6.5% this year, Second Finance Minister Tan Sri Nor Mohamed Yakcop said. He said the projection was based on the unexpected growth of 7.3% during the last quarter of 2007.
In less than a month after that, Nor Mohamed has done a total about turn.
...Nor Mohamed said the 6.5% growth target would be “difficult to achieve". I think the 6.5% level is difficult at present but around 6% or slightly lower is possible,” he added.
Doesn't this further demonstrate that the promises and declarations made by Barisan Nasional leaders cannot be trusted at all? While he was cocksure previously, now he even leaves room for growth rate below 6% with the disclaimer "slightly lower is possible". If even the second Finance Minister can provide misleading statistics to Malaysians, then certainly, there is every reason to be suspicious over all their "feel good" economic pronouncements.

This was clearly in response to the recently released Bank Negara projections on the Malaysian economy whereby the economy is only expected to grow between 5% - 6%.
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