Foreign bankers and investors are reputed to intend to return to Malaysian government bonds after shunning these in the recent past. The reason? The return, at 4%, is attractive in a situation where real bonds, like US Treasuries, offer less than half that rate of return.

Looked at solely in the light of rate of return domestic bonds issued by Malaysia might seem an attractive option. But large scale investors scan the markets keenly and constantly for any negative factors. Not just financial ones but political ones also.

With a government indebted over its head and a Prime Minister recognised world-wide as a mega thief attractive returns suddenly seem less attractive and risk, the other big investment factor, much higher.

Even when Malaysians have got rid of the arch criminal PM and his associates the financial after effects of years of pillaging Malaysia’s financial reserves will weigh heavily on its ability to service its debt.

So prudent foreign investors will look elsewhere for attractive returns on their capital. 4% of nothing is still nothing!