KUALA LUMPUR (Dec 10): Malaysia has strived to "secure highly favourable terms" with regard to its strategic ties with China to ensure long-term benefits for the Malaysian economy, according to Minister in the Prime Minister's Department Datuk Seri Dr Wee Ka Siong. 

Citing Malaysia's proposed RM55 billion East Coast Rail Line (ECRL), which is financed via soft loan from Export-Import Bank of China, Wee said the Malaysian Government had considered the relevant factors holistically before embarking on the loan deal.
 
“The Government has taken all factors into consideration in order to secure highly favourable terms for Malaysia with regard to the recent commitments between Malaysia and China during the prime minister’s visit. Take the loan for the ECRL project (as an example). 

"Between taking a soft loan and issuing a sovereign bond, we have to take into consideration the cost of issuing (the bond) and currency fluctuations in today’s global economic climate,” he told The Edge Malaysia business and investment weekly (Edge Weekly) when asked to comment on concerns about the terms of Malaysia's loan agreements with China.

Wee said the ECRL soft loan had fixed interest rate with deferred repayment period. “As it is debt financing and not equity financing, the facility will not belong to a third party at the end of the day," he said.

For a better understanding on Malaysia-China strategic ties, kindly pick up and read the latest Edge Weekly issue.
 

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