Lim, who is Bagan MP, said the increase in the value of the ringgit has led to a reduction in the quantum of interest payments Malaysia has to make.

At an annual rate of 0.53%, Malaysia is likely to end up paying RM358 million over the 10-year period.

At the same time, the appreciation of the ringgit will also bump up the value of the bond in ringgit terms.

The 200 billion yen bond was valued at RM7.2 billion when it was issued in 2019. But if the ringgit’s gain over the yen is sustained, Malaysia will have to fork out only RM6.26 billion to repay it in full come 2029, giving it a RM900 million gain.

“Once you subtract the interest payment of around RM358 million, we should earn more than RM500 million,” Lim told a press conference at Parliament today.

The yen-denominated Samurai bond was issued by the Pakatan Harapan government led by Dr Mahathir Mohamad and guaranteed by the Japan Bank of International Cooperation.

Lim was the finance minister at that time.

In a parliamentary reply on Monday, the finance ministry said it had spent RM192.1 million on coupon payments as of March this year for the Samurai bonds.

It said the annual coupon rate was fixed at 0.53%, with the coupons paid twice a year every March and September.

The ministry said the ringgit had appreciated against the yen since March 2022, resulting in lower interest payments.