Future holds positive evaluations,prospects for Malaysian economy ? Japanese Ambassador

KUALA LUMPUR (Jan 14): Japan’s Ambassadorto Malaysia, Dr Makio Miyagawa, says the near future holds positive evaluationsand prospects for the Malaysian economy.

He said this was due to the currentadministration under Prime Minister Tun Dr Mahathir Mohamad, which practisedtransparency and good governance, adding that this approach was crucial inrenewing confidence among the people, investors, businesses and the internationalcommunity.

“The policy of the Government has beenreversed, with the current administration taking on a policy of transparencyand good governance.

“Firstly, reducing the Government debt soas to stabilise the Government’s management, which I think is good although atan initial stage, gives some slow growth effects, but in the near future, itwould lead to a more stable growth and healthy economic management,” Miyagawatold Bernama here today.

He was met at the Malaysian National NewsAgency (Bernama) headquarters after a short meeting with the agency’s chairman,Datuk Seri Azman Ujang.

The ambassador said he had met withMalaysia’s Ambassador-Designate to Japan, Datuk Kennedy Jawan and alsodiscussed a number of measures to reinvigorate Tokyo-Kuala Lumpur bilateralrelations.

“The first thing I said to him (Kennedy)was congratulations on his new appointment and positive prospects of theMalaysian economy for some years to come,” he added.

Miyagawa said the Japanese Government hadoffered whatever possible assistance which Malaysia needed, and these amongothers would be the issuance of the Samurai bond, a yen-denominated bond to beissued in the Tokyo market soon.

The Japanese Government has offered toguarantee up to 200 billion yen (RM7.4 billion) of Samurai bonds with a 10-yeartenure. Guaranteed by Japan Bank of International Cooperation at an indicativecoupon rate of 0.65 per cent, the issuance is expected before March this year.

This will not only help reduce Malaysia’shigh financial burden but also create a renewed confidence among Japaneseinvestors to make a return to the country.

“We have offered some measures tostrengthen the Malaysian Government’s engagement for projects and programmes.We are also grateful to Dr Mahathir for inviting Japanese universities toMalaysia.

“We have received a variety of proposals onlocations and now our investors have been considering which locations are themost appropriate for the future of their starting up of education institutionsin Malaysia,” he said.

Elaborating on his discussions withKennedy, Miyagawa said other issues discussed included industrial collaborationas well as measures to increase investments from Japanese industries toMalaysia.

“I have identified concrete outcomes andpossible options for Japanese companies finding investment opportunities inMalaysia,” he added.

Besides the Samurai bonds to help reduceMalaysia’s debts, Miyagawa said  otherassistance offered  were official loansfor Malaysia, so that the Malaysian Government could make use of the loans forits programmes or projects.

The loans, among others, are for humanresource development, sending students overseas, including Japan, andvocational training through collaboration with Japanese vocational traininginstitutes and colleges.

This, Miyagawa said, should cover theshort-term deficiency of the Malaysian budget.

As Japan intensifies its Halal industry,the ambassador said Malaysia’s Entrepreneur Development Ministry had beenworking closely with its counterpart in Japan following the signing of aMemorandum of Understanding on halal cooperation in November last year.

“Under the agreement, we (Japan) inviteMalaysian experts in the halal business to Japan for technology transfer andknow-how to manage the halal food industry, pharmaceutical and cosmeticssectors.

“Particularly with regard to the foodindustry, I think the Japanese market needs short-term assistance fromMalaysian experts because we are holding the Tokyo Olympics next year, and forthis big event, many foreigners and foreign athletes will come and we need tosupply halal food to Muslim visitors,” he noted.

Furthermore, Miyagawa said, as the Japanesefood industry was considering exporting its foodstuffs to Malaysia, it wasimportant to seek guidance from Malaysian experts in order to obtain good halalcertification approved by the relevant authorities.

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