Takemura in KL for trade talks

Takemura in KL for trade talks

KUALA LUMPUR (Reuter): Japanese Finance Minister Masayoshi Takemura arrived in Malaysia yesterday for a four-day visit that is expected to focus on trade issues as well as the rising value of the yen.

The Japanese minister is scheduled to hold talks on Friday with Prime Minister Mahathir Mohamad and Deputy Prime Minister Anwar Ibrahim, who is also the finance minister.

The talks are expected to centre on bilateral trade, the East Asian Economic Caucus, a regional trade forum proposed by Malaysia in 1992, and the Asia Pacific Economic Cooperation forum.

Malaysia's leaders are also expected to bring up the issue of Japan's huge trade surplus and the appreciation of the yen, which has increased Kuala Lumpur's burden in servicing its yen- denominated loans as well as raised the cost of Japanese goods such as car and electronic components.

According to local press reports, Malaysia's yen-denominated loans decreased by 4.6 percent from 679.6 billion yen ($6.79 billion) to 648.3 billion yen ($6.48 billion) in the first three months of 1994, but it had to spend almost half a billion ringgit ($196 million) more to service them.

Japanese firms are involved in a variety of industries in Malaysia, including both national car projects, Perusahaan Otomobil Nasional (Proton) and Perusahaan Otomobil Kedua (Perodua).