“No, there are no strings attached (to the samurai bonds),” he said after opening the World Chinese Economic Forum here today.
He was responding to a question on whether the yen credit is being given in exchange for Japanese companies having projects in the country, such as the East Coast Rail Link (ECRL) project.
“The bonds can be used to repay loans to spend on projects,” he added.
The Japanese government has offered to guarantee up to 200 billion yen (RM7.4 billion) of samurai bonds with a 10-year tenure.
The yen-denominated bonds will be guaranteed by the Japan Bank of International Cooperation at an indicative coupon rate of 0.65% and are expected to be issued before March next year.
Malaysia has voiced its interest to secure the yen-denominated loans during the first meeting between Mahathir and Japanese Prime Minister Shinzo Abe in June this year as part of efforts to address the country’s debt woes.
In the past, China had agreed to provide loans from the Export and Import Bank of China (Exim) to Malaysia, on condition that the China Communications Construction Co Ltd (CCCC) be appointed as the contractor for the ECRL project.
On whether there would be a prominent role played by Kyushu Railway Company or other Japanese companies in the country’s transport industry, Mahathir said: “JR Kyushu is one of the most successful railway companies in Japan. We want to learn from them and want them to advise us on how to manage our transportation programme.”
During Mahathir’s recent working trip to Japan, Abe had said experts from JR Kyushu and the Japan Freight Railway Company will be dispatched to Malaysia, to look into Malaysia’s transportation problems and provide advice on how to run the national railway.
On former finance minister Daim Zainuddin’s remarks that renegotiations with China on the ECRL are continuing, Mahathir affirmed this, but was unsure how long the process would take.
“It is not an easy thing to renegotiate, but we will continue until we succeed.
“I can’t tell (how long it will take). I do not know the progress,” he said.
On former international trade and industry minister Rafidah Aziz expressing intent to join PPBM, Mahathir, who is the party chairman, said she was welcome to join the party but did not elaborate on whether she would be given a post.
“We welcome her. She has been working with us for a long time.
“We do not know about any post. She will be a member,” he said.
On the proposed third national car project, Mahathir said the project will be driven by the private sector.
“It is up to them, whether they decide to go with China, Japan or Korea. We have no conditions for them,” he added.