Scary story in Malaysian Insider of today:
- 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:
"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."