Japanese Financial Support to Malaysia Under the Principle of the ''New Miyazawa Initiative''

MINISTRY OF FINANCE
THE GOVERNMENT OF JAPAN

Japanese Financial Support to Malaysia
Under the Principle of the "New Miyazawa Initiative"

December 16, 1998

1. We indicated to the government of Malaysia that we were positively considering to extend our financial support under the principle of "A New Initiative to Overcome the Asian Currency Crisis - New Miyazawa Initiative -" to assist her efforts in restructuring the economy.
   The support to Malaysia amounts approximately to the Yen equivalent to U.S. $ 1,500 Million in total.
   The content of our financial support is as stated in the APPENDIX.

2. In addition to those mentioned above, the Ministry of International Trade and Industry is now positively examining the utilization of the trade insurance facility to Malaysia (the Yen equivalent to U.S. $ 560 Million). The insured loans are to be extended by the end of this year.

3. This financial support is the first step in a series of support extended to Malaysia under the principle of the "A New Miyazawa Initiative" in response to the request from Malaysia. We will continuously analyze her further financial needs and consider the extension of our appropriate support including JEXIM's guarantee facility, if necessary.

4. We hope that our support will contribute to her overcoming current economic difficulties and that the Malaysian economy will return to a prosperous growth as quickly as possible.

MINISTRY OF FINANCE
THE GOVERNMENT OF JAPAN

Medium- to Long- Term Financial Support toMalaysia