SHOCKING HIKE IN PRICES WILL SEAL NAJIB'S 'COFFIN': Abolish GST now, inflation up 33 times, BUSINESS IS DYING

This is from The Asia Sentinel here. Can someone translate this into Malay and get the Majlis Tertinggi UMNO, the Cabinet Ministers, the Ketua Bahagian UMNO and the prepaid bloggers to read and understand this? Utusan does not have the capacity to understand this or write about this.

I will try to summarise this for easy reading but these folks must understand what this whole report means.

http://www.asiasentinel.com/econ-business/malaysia-stumbles-toward-financial-crisis/

perfect storm of bad economic news appears inundate rudderless govt in M'sia

political squabbling paralyzes leaders

Fiscal revenues going through floor

currency is diving

inflation rise from 0.1% in Feb to 3.3% in July (inflation jumped 33 times !!)

huge projected fiscal deficit and steep bond indebtedness

country may be faced with borrowing on international markets.

sliding currency, massive corruption, borrowing costs likely to go through roof

Najib remains insulated from overthrow by "paid for loyalty" of 192 UMNO KBs

major financial crisis could change equation

Najib skips town

economy grows weaker, scandals percolate, Najib left country

first to London then to New York

he and Rosmah to fly to Milan where she is to sponsor Islamic fashion show

M'sia entering financial crisis according leading global economists

Central Bank reduce foreign reserves substantially to support currency

M'sia paralyzed by corruption scandal

US$861m into PM's private account at AmBank in 2013

disappear to a Singapore account, then disappear altogether shortly after.

rocked by RM42 billion 1MDB financial scandal

billions siphoned off, billions more lost to bad investments

losses faced by government-linked banks threaten financial system.

Stock market heads south

Attempts to prop up stock exchange using RM20 billion

two-day bounce on Sept. 16 before market slide resumed

At 1623.27, now 14.57% off April peak, worst-performing in region

ringgit fell to 4.4570 this week, a 19.93 % drop

central bank spent US$60 billion over past months – a third of country’s reserves.

Sept. 15, reserves fallen to US$95.0b, enough 7.3 months of retained imports

concerns how long country can support currency

falling currency raising cost of imports, 69.9 percent of GDP in 2014.

International investors bail out

External debt reported by BNM reached all-time high in 2nd qtr at RM79.4 billion.

World Bank’s forecast GDP 2015 4.9%, down from 6.5% July 2014, may get worse

weak commodity subtract almost 1% growth annually over 2015–17 compared 2012–14

Petronas drag larger, about 2¼ % avg over same period, sharp downturn in prices

current fiscal year, Petronas contributed RM18b to budget

another RM18b from Petroleum Development Tax

total of RM36b from Petronas reserves.

Officials privately forecasting two funds will contribute only RM7b each

leaving a shortfall of RM21b

Tax collections fall sharply

income tax collections expected to fall 20-30% from RM111b in 2014

drop of another RM21b to RM35b weak consumer sentiment, slow business

Opex for Fiscal 2015 is approximately RM160b

“They can’t reduce it unless they begin to cull civil servants,”

“deficit 52%, off-balance-sheet contingent liabilities another RMB18 b

That’s like Italy and Spain, haven’t taken into account 1MDB yet

How are they going to borrow? ratings horrendous next year

cost of borrowing high given Msia’s junk status.

start selling crown jewels, assets in government companies

45% of bonds held by foreigners, likely to bail out and redeem them

RMB33 billion in bonds are expected to come due in the next quarter.

My comments : There are other things happening that are killing business. Listen up. The GST was imposed six months ago in April. Buisness has just died since then. Someone said a well known kopitiam chain has suffered 60% drop in sales. Everyone is suffering loss of business.

To the morons who argued the GST will not cause inflation more than 6%, please go and jump in the sea. Bodoh.

There is NO net effect, as some of you argued before April.

The GST has caused a compounding effect on prices. When the wholesaler sells to the retailer he adds 6%. The retailer adds his profit markup then adds another 6% and sells it to the customer.

The netting off is between wholesaler and retailer only when they pay the collected GST to the Customs. But the price rise is compunded. This is what is happening on the ground. Your foolish theories say otherwise but what is happening on the ground is different.

The people suffer because they only have the same amount of money to pay for all the higher priced goods. So they buy less. Businesses also suffer.

Here is something else. After GST in April, sales have crashed. Because sales have crashed businesses are not ordering new inventories from manufacturers and suppliers.

So there is less GST paid to suppliers to be "netted off" against the GST collected from their own sales. (I hope the morons in the cabinet can understand this).

Since most SMEs and other business do not segregate their GST collections from their sales proceeds, (meaning semua duit masuk satu akaun lah) they use up the GST money for their business expenses.

Now they have no money or less money to pay the GST. This is the reality on the ground.

Or those who pay the GST on time do not have enough cash left in the account to pay their rentals, salaries, pay the bills, bayar hutang, buy new goods etc.

Argue all you want morons, this is the reality on the ground. How many of you morons have run a real business ever in your life? Projek dan kontrak dapat buta not counted ok.

The economy is just grinding to a halt. If business continues to die like this the gomen will not be able to collect much GST, Income Tax and any other tax. Gomen juga bankrap.

Abolish the GST now. - http://syedsoutsidethebox.blogspot.my/