Explain RM544 million Bond
the State government was really financially strong, why was there a
need to issue Bonds?
KOTA KINABALU, June 21, 2011:
SAPP CLC Api-Api Organizing Secretary Clement Lee would like to query
the RM544 million worth of bonds issued by BN-led government as stated
by the Chief Minister during his budgeted speech on 19 November 2010 at
"The estimated revenue for 2010 being over the RM3 billion level takes
into account proceeds from the issuance of bonds worth RM544 million
effective this year.” which in actual fact meant that the estimated
State revenue was merely RM2.5 billion.
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Bond is a form of debt investments where state government loans a
certain amount of money, for a certain period of time, with a certain
rate of interest, to companies and individuals at large at a discounted
"How could the BN government account the RM544 million worth of bonds
issued, which in essence are debts, as State Revenue in 2010?
When such bonds mature in 5 years time, the State government will need
to buy back the bonds at the original price from the investors.
"If the BN-led government really had a strong financial backing in the
state coffer, why would they still need to issue bonds in order to
raise funds? It seems like the present BN government is not telling the
truth and utterly misleading the public.
The present government should seek more sources of income like opening
up more land for cultivation and increasing the productivity of the
present state-owned GLCs and reducing the operational costs which would
surely translate to revenue, among others.
"What about the RM1 billion special allocation promised by the federal
government for the Sabah Development Corridor project?
"Another pressing issue is that, why did the state government give away
5,000 hectares of palm oil land to United Malacca Berhad whilst local
based Sabahan companies were more than capable to develop them?
"We want the BN government to explain on these matters and clear public
ambiguity and confusion.