In Tough Times, Malaysia Turns to Crowdfunding to Pay Off National Debt

When economic times get tough, the government of Malaysia turned to its citizens to get going toward erasing the country’s staggering national debt.

Malaysian officials said they were “humbled” by the response to a crowdfunding campaign they launched, to get the nation’s $250 million debt under control. Almost $2 million had been raised to fund the state within the first 24 hours of the campaign.

The finance ministry asked all willing Malaysians to donate to the cause, hoping to ride a wave of patriotism that led to the peaceful transition of power and the election of Prime Minister Mahathir Mohamad, the former opposition alliance leader who unexpectedly won his bid for office last month.

The crowdfunding plan was coined after a Malaysian woman who voluntarily raised about $3,500 to be put toward the nation’s debt and ensure that the government maintained a level of transparency. The Southeast Asian nation had been racked by scandal under former Prime Minister Najib Razak, who has been accused of stealing hundred of millions of dollars in state funds.

Libby Hikind, founder and CEO of the free crowdfunding website YouHelp.com, said entrepreneurs typically use crowdfunding as an inexpensive means to finance fledgling ideas for products and services. Crowdfunding can also help promote a brand to create an enthusiastic base of initial customers. And, as an extension of economic development, local governments can create crowdfuding campaigns that have the potential to transform the way in which citizens work together toward a common goal. As for financing nations, this crowdfunding effort may be a first.

Although, in 2015, a San Francisco real estate mogul did launch a crowdfunding campaign in an effort to create a new country for refuges to live. Jason Buzi wanted to raise $3 billion to solve the global crisis by purchasing land for “the intent of creating cities, chartering territories, and establishing a new nation that would accept any and all refugees.”

Malaysia, on the other hand, appears content to crowdfund as a solution to internal problems. In a statement, the Finance Ministry said, "Truly, Malaysians have taken their patriotism to a greater height, willing to part with their allowances and spare cash to help rebuild this nation we all love."

Malaysia’s national debt amounts to about 80 percent of the country’s gross national product.

YouHelp.com offers the best in crowdfunding capabilities to forward-thinking organizations and individuals who want to connect their campaigns to the public. The process is simple: create a profile, a fundraising goal, and compelling message that prospects will find worthwhile — and launch. If the idea is deserving, people will pledge their support.

About the Author: Staff Writer for YouHelp

Sources:

Crowdfunding Helps 9-Year-Old Boy Turn Lemons into Lemonade for Sick Infant Brother

A 9-year-year-old South Carolina boy is proving he can make lemonade out of lemons. In the two hours after he opened a lemonade stand at a used truck dealership in Greenwood, Andrew Emery raised some $6,000 to help his sick brother, Dylan, who suffers from Krabbe disease, a rare and often lethal neurological condition.

But that’s not all. South Carolina’s littlest entrepreneur went to social media, where the publicity he generated from his lemonade stand led to a crowdfunding campaign that raised $5,600 for his infant brother, who is currently in a Pittsburgh hospital receiving medical care, and another $1,300 at a benefit concert.

Libby Hikind, founder and CEO of the free crowdfunding website YouHelp.com, said social media is an effective tool for expanding a campaign’s donor base beyond family, friends and work. But, social media channels including Twitter and Facebook should already be firmly established before launching a campaign. Once the campaign has begun on YouHelp, organizers should share donations and comments from contributors to inspire others to commit.

Andrew Emery had a social network that included some, perhaps, he had never met. After he pleaded on Facebook to “"Please come buy lemonade so I can raise money to help Dylan get better," the community converged on his stand, handing him stacks of cash for each cup of lemonade.

Andrew's father, Matthew, and stepmother, Melissa, have been stunned by the campaign but not in the least by the extension of love from their son. Meanwhile, Andrew has been talking to his baby brother on video calls and has big plans “to hug him” when he gets home.

YouHelp.com offers the best in crowdfunding capabilities to forward-thinking organizations, groups and individuals who want to connect their campaigns to the public. The process is simple: create a profile, a fundraising goal, and compelling message that prospects will find worthwhile — and launch. If the idea is deserving, people will pledge their support.

 

About the Author: Staff Writer for YouHelp.com

Sources: