Muhyiddin ignorant of nation's finances, says MP

Sarawak DAP has accused Deputy Prime Minister Muhyiddin Yassin of being ignorant of the financial position of Malaysia by claiming that the country would go bankrupt should oil royalty to Sarawak be increased to 20 percent.

"The increase will amount to RM2.2 billion ... which constitutes about one percent of the federal revenue," said state DAP secretary Chong Chieng Jen.

Chong (left), who is also Bandar Kuching MP and Kota Sentosa assemblyperson, was commenting on two statements made by the deputy prime minister during his recent visit to Kuching.

Muhyiddin had said that Malaysia would not go bankrupt because the country has sufficient funds and was able to give out various forms of assistance to the less fortunate Malaysians and the implementation of mega development projects. This was because the country collected RM125 billion revenue last year.

In another statement, the deputy prime minister however said that the country would go bankrupt if the oil royalty to Sarawak was to be increased from five percent to 20 percent.

"The two statements contradict each other. If we look at our annual state budget, our income from oil royalty is approximately RM785 million a year from the five percent oil royalty," Chong said.

'Less than one percent'

He said a 20 percent increase it will bring an addition of RM2.2 billion as compared with the federal revenue of RM110 billion from income tax, RM40 billion from customs collections and revenue, as well as other miscellaneous incomes between RM20 billion and RM30 billion.

"And if you compare with the federal expenditure of RM230 billion a year, (if) the additional payment of RM2.2 billion to Sarawak, which is also less than one percent of the federal expenditure, can bankrupt the whole federal government, that means the financial position of Malaysia is not stable.

"That means Malaysia's financial position is very precarious already. I say Muhyiddin's statements are contradictory. He really does not know how to count," he said.

Chong pointed out that the statements reveal Muhyiddin'a ignorance of the federal revenue and expenditure.

"This is very typical of BN leaders who talk without figures as compared to us from the Pakatan side. When we propose the increase of oil royalty from five percent to 20 percent, we show figures that are workable and feasible."