Dr M to discuss Samurai bond issuance with Abe during visit to Japan, envoy says

Prime Minister Tun Dr Mahathir Mohamad will be on a three-day working visit to Japan starting Monday. — Picture by Mukhriz Hazim
Prime Minister Tun Dr Mahathir Mohamad will be on a three-day working visit to Japan starting Monday. — Picture by Mukhriz Hazim

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TOKYO, Nov 4 — The RM7.4 billion Samurai bond issuance, which the Japanese government has offered to guarantee, is expected to be discussed further during the bilateral meeting between Prime Minister Tun Dr Mahathir Mohamad and his Japanese counterpart, Shinzo Abe, on Tuesday.

Malaysian Ambassador to Japan, Datuk Ahmad Izlan Idris, said as the bonds had been announced during tabling of the 2019 Budget last Friday, the upcoming meeting was an appropriate platform to discuss the matter.

“I think that’s probably one of the issues to be discussed between the two prime ministers during the bilateral meeting on Nov 6. There are a lot of issues to be raised such as economy, trade and investment. And yen credit is also an important issue,” he told the Malaysian media here Sunday.

The Malaysian government has extended its appreciation to the Japanese government for the offer to guarantee ¥200 billion (RM7.4 billion) Samurai bonds with a 10-year tenure.

In his 2019 Budget speech, Finance Minister Lim Guan Eng said the offer was made due to the Japanese government’s confidence in the administration and leadership of Dr Mahathir.

The yen-denominated bonds, to be guaranteed by Japan Bank of International Cooperation at an indicative coupon rate of 0.65 per cent, are expected to be issued before March next year.

Ahmad Izlan said during the bilateral meeting, the two leaders might also discuss the second national car and the Look East Policy.

He said during Dr Mahathir’s three-day working visit to Japan starting tomorrow, he would also deliver a keynote address on the current situation in Malaysia and the expected investment from Japan to about 600 corporate figures and captain of industries at the 36th Japan-Malaysia Economic Association (Jameca)-Malaysia-Japan Economic Association (Majeca) Joint Conference and Malaysia Business Forum here.

“It (the conference) will be held after the bilateral meeting with the Japanese Prime Minister. He will explain on investment opportunities in Malaysia in order to attract more foreign direct investment to the country,” he added.

Japan is Malaysia’s fourth largest trading partner.

For Japan, Malaysia is its 11th largest trading partner in the world, and fourth among Asean countries after Thailand, Vietnam and Indonesia. — Bernama