Can Malaysia go the way of Greece becoming a bankrupt country and can Sarawak be spared if Malaysia is bankrupt?

The diagnosis as to how the great nation of Greece ended as a financial “basket-case” are:

Bureaucracy: Greece’s bureaucracy is famous in the whole of Europe ! To open a cafe or pub there are 25 processes to go through! This is a country of rules and regulations.

Bloated civil service: There are 1.05 million civil servants (excluding police and armed forces) . The population of Greece is only 10 million! More than 10% are govt servants! Salary increases every year and benefit for civil servants in Greece is one of the best in Europe! More and more money is needed to upkeep this bloated civil service . The retirement age is 62 yrs old.

Corruption: Greece is the most corrupted nation in the Eurozone. Citizens pay “under table ” money to:

# admit into a public hospital

# pass a driving licence

# to enter public service

# renovate your business premises or your home

# avoid income tax

Every govt project is awarded to political cronies and at hugely inflated prices! Transparency International compared the prices of the construction costs of stadiums built for the Athens Olympics recently with similar structures in China –500% more expensive than the Chinese , compared to Los Angeles and Sydney — 50 % more expensive!! All these with tax payers money and borrowings!

Tax evasion: Officially 80% of its citizens are supposed to pay tax but only 37% are doing so. Big businessmen and corporations have refined tax evasion to a fine art (or have the tax men taken some coffee money?)

No transparency in governance: The politicians and bureaucrats falsified economic data and painted a rosy and manageable picture while the economy was rotting away.

Unabated borrowings: Meanwhile, the politicians and bureaucrats continue to issue government bonds to keep afloat, series after series. They were trying to cover up the financial mess they have created creating one big hole to cover up the previous!

Lacking political will power to reform: To keep hold on to political power, politicians are prepared to lie, commit economic and political fraud. If reforms were taken some five years ago, the country need not go bankrupt and its citizens need not suffer so much. Political expediency and greed to political power over-rides everything and hence Greece is now a bankrupt country. Luckily, it is part of the European Union and its currency is EUROs, otherwise Greeks will have to eat grass to survive!

Laid back attitude: Tourism is THE ONLY industry in Greece and over the years the Greeks have had an easy time. Many flocked to see the historical sites and enjoy summer vacation on the islands. But they forgot that not many tourists will return after visiting the sites –there are so many other tourists attractions in the world, maybe more exotic and perhaps cheaper! So once tourism wanes and coupled with higher costs of living, the Greeks could not and refused to adapt and transform – still partying and having a nice time; maybe the Greek Gods will bless them! Greece have no natural resources, no electronics industry, no R & D –no anything! They were so laid-back –cannot see what is coming and crashing down on them. Even now, the civil servants refused to take a pay cut — the world owes them a living!

Conclusion: The producer of the documentary had hired a taxi driver to go around while doing this documentary. The taxi driver had studied economics for four years in US and this was his parting words:

“My biggest mistake was returning 15 years ago, I should have stayed back in US. My nationalist instinct made me returned. The politicians screwed me. I loved my country but my country did not love me.”