Recently Malaysiakini reported as follows:-
Close to RM200 billion of dirty money was siphoned out of Malaysia in 2010, putting the country second only to Asian economic powerhouse China in global capital flight.
Washington-based financial watchdog Global Financial Integrity (GFI), in its latest report which tracks capital flight, says the level of illicit flows from Malaysia in 2010 was the highest in 10 years.
![WHO'RE THE TRAITORS HERE! The US & S'pore are helping BN RAPE MALAYSIA]()
GFI has introduced a new and more conservative methodology in its
estimates of illicit financial outflows, which help to zero in
exclusively on dirty money. As such, estimates from its previous reports
have been revised.
I downloaded the GFI Report from the web and read it for myself.
Para 27 on page 19 of the report reads as follows:-
The private sector in developing countries transfers illicit capital into the global shadow financial system through different channels, depending on the country of origin. For instance, while trade mispricing is the preferred method of sending illicit funds out of China, the balance of payments (captured by the HMN method) is the major channel for transferring unrecorded capital from oil exporters such as Nigeria, the Russian Federation, Saudi Arabia, and Indonesia.
In short, GFI has developed a mechanism to measure the flight of unrecorded capital from countries like Malaysia. You can read about the methodology in the report itself. Whilst the methodology has its shortcomings, it is about the closest measure that GFI can possibly get to in the absence of complete transparency in reporting. The GFI therefore adopted a conservatively focused Hot Money Narrow method adjusted for trade mis-invoicing (HMN+GER). The operative word here is “conservative” – in other words, the total outflows could actually be worse than reported!
Now you know why we had to buy the Scorpenes!
The report also says :
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Close to RM200 billion of dirty money was siphoned out of Malaysia in 2010, putting the country second only to Asian economic powerhouse China in global capital flight.
Washington-based financial watchdog Global Financial Integrity (GFI), in its latest report which tracks capital flight, says the level of illicit flows from Malaysia in 2010 was the highest in 10 years.
GFI has introduced a new and more conservative methodology in its
estimates of illicit financial outflows, which help to zero in
exclusively on dirty money. As such, estimates from its previous reports
have been revised.I downloaded the GFI Report from the web and read it for myself.
Para 27 on page 19 of the report reads as follows:-
The private sector in developing countries transfers illicit capital into the global shadow financial system through different channels, depending on the country of origin. For instance, while trade mispricing is the preferred method of sending illicit funds out of China, the balance of payments (captured by the HMN method) is the major channel for transferring unrecorded capital from oil exporters such as Nigeria, the Russian Federation, Saudi Arabia, and Indonesia.
In short, GFI has developed a mechanism to measure the flight of unrecorded capital from countries like Malaysia. You can read about the methodology in the report itself. Whilst the methodology has its shortcomings, it is about the closest measure that GFI can possibly get to in the absence of complete transparency in reporting. The GFI therefore adopted a conservatively focused Hot Money Narrow method adjusted for trade mis-invoicing (HMN+GER). The operative word here is “conservative” – in other words, the total outflows could actually be worse than reported!
Now you know why we had to buy the Scorpenes!
The report also says :