Mahathir to discuss yen with Murayama

Mahathir to discuss yen with Murayama

KUALA LUMPUR (AFP): Prime Minister Mahathir Mohamad said he would raise Malaysia's trade and investment problems with Japan during talks with his Japanese counterpart Tomiichi Murayama, scheduled to arrive here next week.

"There are quite a lot of issues (to be raised)," Mahathir said Tuesday, adding that the soaring yen was hampering efforts to tackle Malaysia's trade imbalance with Japan.

Mahathir said the appreciation of the yen had increased the price of goods and components imported from Japan and hiked the value of yen-denominated loans, currently valued at more than seven billion ringgit (US$2.8 billion).

Last year Malaysia incurred its biggest-ever trade deficit with Japan, 16.5 billion ringgit ($6.6 billion). This figure is projected by Malaysian trade officials to increase to 20 billion ringgit ($8 billion) this year.

Murayama is scheduled to stay in Kuala Lumpur from Aug. 26 to 28 as part of a regional tour, which will also take him to the Philippines, Vietnam and Singapore, officials said.

It will be his first visit to the region since taking over in June as Japan's first socialist prime minister in 47 years. His predecessor Kiichi Miyazawa visited Brunei, Indonesia, Malaysia and Thailand in January last year.