Why won’t Mahathir go to the IMF for money?

And that is why every day you hear Lim Guan Eng announce one bad news after another. They need this bad news to explain why Pakatan Harapan cannot deliver its election promises and to blame Najib for Pakatan Harapan not being able to deliver its election promises.

NO HOLDS BARRED

Raja Petra Kamarudin

Why is Mahathir running to Japan and China for money instead of to the IMF?

A country in severe financial trouble, unable to pay its international bills, poses potential problems for the stability of the international financial system, which the IMF was created to protect. Any member country, whether rich, middle-income, or poor, can turn to the IMF for financing if it has a balance of payments need—that is, if it cannot find sufficient financing on affordable terms in the capital markets to make its international payments and maintain a safe level of reserves.


IMF loans are meant to help member countries tackle balance of payments problems, stabilize their economies, and restore sustainable economic growth. This crisis resolution role is at the core of IMF lending. At the same time, the global financial crisis has highlighted the need for effective global financial safety nets to help countries cope with adverse shocks. A key objective of recent lending reforms has therefore been to complement the traditional crisis resolution role of the IMF with more effective tools for crisis prevention.

The IMF is not a development bank and, unlike the World Bank and other development agencies, it does not finance projects.

That is what the IMF said on its website. So why does Tun Dr Mahathir Mohamad not go running to the IMF to borrow money since Malaysia is on the verge of bankruptcy and the country cannot pay its debts because Najib Tun Razak has brought the country to the brink of financial ruin? Why go running to Japan and China instead?

If Mahathir takes money from the IMF, Malaysia will be forced to reform and Mahathir’s cronies will no longer be able to rob the country

The truth is Malaysia is not on the verge of bankruptcy and Najib did not bring the country to the brink of financial ruin. All that is merely a spin to give an impression that Najib has almost destroyed Malaysia and if Pakatan Harapan had not taken over the federal government on 10th May 2018 by today the country would be in ruins.

The strategy is simple. As soon as they took over on 10th May 2018, they announced as much bad news as possible. 1MDB lost RM42 billion. RM19 billion GST funds are missing. RM16 billion tax refunds are missing. The ECRL is going to cost RM20-30 billion more to build. China cheated Malaysia by overcharging on all the projects they are contracting (plus they collaborated with Najib to launder stolen money from 1MDB). And so on and so forth.

So, because of all this bad news, Malaysians start preparing themselves for the worst.

Then, a year or so later, they will announce the good news. Pakatan Harapan has managed to save Malaysia. All the problems have been solved. The stolen money has been recovered. The cost of the projects has been reduced and billions has been saved. The RM42 billion a year GST collection has been replaced with the RM21 billion a year SST collection, saving Malaysians 50% in tax payments and allowing Malaysians more spending money.

So, all this bad news over the last 100 days was just part of the drama. It is a shock and awe exercise so that later the good news can excite Malaysians who had expected doomsday. Once the good news start coming out, Malaysians will breathe a sigh of relief that they had changed governments on 9th May 2018 and that this wise decision managed to save Malaysia from doomsday. Pakatan Harapan had done a fantastic job of saving Malaysia, and if Mahathir had not taken over and Najib had not been kicked out, today Malaysia would no longer exist.

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