The recent report by Global Financial Integrity, a US-based group aimed at improving governance, contains…
Illegal capital flight dwarves capital inflows
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."