KUALA LUMPUR: The government plans to change Malaysia’s financial system to avoid any more manipulation of figures in the country’s financial statement.
Finance Minister Lim Guan Eng says the government plans to change the system from the present cash-based one to an accrual system as soon as possible.
Admitting that the change will take time, Lim said the system would nevertheless prevent the hiding of numbers, specifically those involving the Federal debt, in the future.
“By changing this system, we can prevent problems from cropping up because all income and expenditure must be recorded in the financial statement without taking into account when they were received or paid.
“Compare this to the present system, which only takes into account government guarantees only when they are paid, meaning that any manipulation would only be known three or four years later.
“This new accrual system will enable us to understand the country’s financial situation in a quicker and more precise manner; this is what we are calling a ‘reformasi’ of the accounting and finances,” he said.
Lim was speaking at a programme titled ‘Bicara Khas Bersama Menteri’ aired live on RTM1 on Sunday.
The hour-long programme, which began at 10pm, was hosted by Sayed Munawar Sayed Mohd Mustar.
Lim had previously said that the Federal government’s debt and liabilities totaled RM1.087 trillion, which was different from the Barisan Nasional government’s published figure of RM686.8 billion, which only took into account the official debt.
Lim had also said that 1Malaysia Development Brh (1MDB) did not settle its debts by using its own assets, with the government having paid more than RM7 billion for the company to date.
Lim said the change in the accounting system is one of three measures being implemented by the government to ensure that issues such as hiding the level of the Federal debt as well as the 1MDB debt repayment issue is not repeated.
He said other measures include giving access to all government files, especially the Finance Ministry to be audited without any hindrances, as well as appointing a company to probe and divulge any possible matters which may have been hidden by the previous government.
Meanwhile, Lim, who is also DAP secretary-general, gave his assurance that he would support the effort of Prime Minister Tun Dr Mahathir Mohamad to ensure that the Bumiputera agenda is not sidelined, and instead, given priority.
Citing the example of the issuance of open tenders for projects, Lim said its implementation would not sideline Bumiputera contractors.
“When we say open tender, it means that it is open among the Bumiputera contractors, not open (to involve other contractors) as viewed by some. We want the issuance of contracts to be competitive.
“When I was Penang Chief Minister, although we practised an open tender system, more than 90 per cent were won by Bumiputera contractors.
“I think we should not look down on the abilities of Bumiputera contractors because like in Penang, they have demonstrated their willingness and ability,” he said.