KUALA LUMPUR: Malaysia is looking at issuing a second round of Samurai bonds following the availability of a low-rated loan from Japan, said Prime Minister Tun Dr Mahathir Mohamad.
"Japan is making available a very cheap loan at 0.65 per cent, but now, it will be even lower.
"We are studying how we can use this cheap money for overcoming our financial problems," he said after launching the World Tourism Conference here, today.
The Prime Minister had previously said the bonds would allow Malaysia to capitalise on the exchange rate variance between the Japanese currency and the US dollar to help lessen the burden of the country’s debts.
Japanese Prime Minister Shinzo Abe was reported as saying that the Japan Bank for International Cooperation (JBIC) is ready to consider further support if Malaysia wishes to issue additional Samurai bonds in future.
Malaysia issued the first round of Samurai bonds in March of this year following the issuance of 200 billion yen (about RM7.4 billion) in Samurai bonds.
The bonds were guaranteed by JBIC with a maturity tenure of 10 years with a full cost to the government at 0.63 per cent per annum.
Proceeds from the first bond issuance will be used to fund infrastructure developments, including the construction of schools, hospitals, roads and utilities.
A Samurai bond is a Yen-denominated bond issued in Tokyo by non-Japanese companies, and is subject to Japanese regulations.
On the ongoing trade war between the United States and China, Dr Mahathir did not mince his words in taking the two global economies to task.
"I think trade wars are stupid. If you cannot agree on deficits in your trade balance, you should negotiate, not have a boycott and things like that. That is very stupid," he said.