‘BOND COMES WITH NO STRINGS ATTACHED’
Japanese govt did not set any condition for Samurai bond, says PM
THE Japanese government did not set any condition on its offer to guarantee the issuance of RM7.4 billion Samurai bond to Malaysia, said Prime Minister Tun Dr Mahathir Mohamad.
He said Japan’s offer for the Yen-dominated bond, at a total value of RM7.4 billion, came with “no strings attached”.
“The Samurai bond can be used to repay (the country’s) loans or on development projects.
“No, there are no strings attached,” he said after delivering his keynote address at the World Chinese Economic Forum (WCEF) in Seri Kembangan yesterday.
Present was WCEF organising committee chairman Tan Sri Dr Michael Yeoh, co-chairman and Deputy Dewan Rakyat Speaker Nga Kor Ming and Malaysia’s special envoy to China, Tan Kok Wai.
The Samurai Bond has a tenure of 10 years and is expected to be issued before March next year via Japan Bank of International Cooperation, at an indicative coupon of 0.65 percent.
On another matter, Dr Mahathir said Japanese rail company, JR Kyushu, was among the leaders in the industry, adding that Malaysia was keen to gain knowledge and experience from Japan in the transport field.
“Yes, JR Kyushu is one of the most successful Japan railway companies. We want to learn from them. We want them to advice us on how to manage our transport system,” he said.
During his trip to Japan, Dr Mahathir said the government was seeking JR Kyushu’s cooperation to conduct a study on the national railway system.
This, he said, was to ensure that the services would benefit the country and the people, given that only 30 per cent of the rail system was being used.
He also confirmed that negotiations was ongoing with China on the suspended East Coast Rail Link project.
“Yes, it is not easy to negotiate. We will continue with it until we succeed,” he said.
On how long the negotiations would take, Dr Mahathir replied: “I can’t tell how long (it will take). I don’t know the progress, the time table.”
Tun Daim Zainuddin, who is the Council of Eminent Persons chairman and former finance minister, had on Thursday said that negotiations were ongoing between Malaysia and China.
Daim had said the country was looking at the many options to handle the RM80 billion project from Port Klang to Pengkalan Kubor. Both parties, Daim said, needed a “little bit” more time to address the issue.
On the planned third national car project, Dr Mahathir said: “The third national car is a private sector effort. How they plan to do it is up to them. They can opt for Japan or China or Korea (to forge a cooperation). We have no conditions for them.”
Earlier, Dr Mahathir paid tribute to the contributions of the Malaysian Chinese community to the country and its economy.
He said Malaysia would be in a different situation were it not for the Chinese community.
“Without the Chinese community, we would have been lagging behind in terms of development. They (the Chinese) have a knack for creating wealth wherever they go.
“Their contribution has not always been confined to business and making profit, but in other fields as well,” he said.
He said Malaysia, despite being a multiracial country, had remained peaceful and stable, with Malays, Chinese, Indians and other races working together, even in politics.
“The coalition of Malay, Chinese and Indians parties manage to overthrow a 61-year-old government... a kleptocratic government.
“Today, we remain peaceful and stable. Democracy has been restored again,” Dr Mahathir said in reference to Pakatan Harapan’s win over Barisan Nasional in the 14th General Election.