Thursday, May 4, 2017

Civil Servants Go Bankrupt

The Star pix

Prices have been steadily rising since Malaysia cut state subsidies and launched a national goods and services (GST) tax to plug a hole in its finances caused by falling oil and gas revenues. This means that rank-and-file government workers are feeling the pinch.

This dire situation can only get worse. It seems that many civil servants, particularly from the middle and lower ranks are taking up loans just to cope with the rising cost of living.

Congress of Unions of Employees in the Public and Civil Service (Cuepacs) president Azih Muda said civil servants have resorted to borrowing from financial institutions and even loan sharks – and it is estimated up to 100,000 civil servants may soon be declared bankrupt.

As of now, he said 3,000 of them are already bankrupt.

But the real reason is the issue of these wage-earners trying to offset their expenditure. A polite way of saying that they are overspending. Meaning, they are living beyond their means.

Citing an example, Azih said a civil servant, who is only eligible to apply for a RM50,000 loan, could go to four banks to apply and get a total sum of RM200,000. Some even submit fake salary slips to ensure that they are successful and once this happens, there is no end to it.

Either civil servants learn to curb their spending or they are soon be staring at the prospect of being bankrupts.

And Malaysia's 1.6 million civil servants have long been a dependable vote bank for Prime Minister Najib Razak's ruling coalition. But when GE14 arrives, these votes are in real jeopardy.

On Monday, Liverpool managed to put in one precious goal to beat Watford in an EPL match that the Reds could not afford to lose.

Emre Can met Lucas Leiva's cross with a wonderful bicycle kick which flew into the top corner of the net (45+2). Other than that, it was a forgettable game.

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