Malaysia Gains RM1.6 Billion from Samurai Bond

Malaysia is set to record a RM1.6 billion profit from its 2019 samurai bond issuance, following the sharp depreciation of the Japanese yen against the ringgit. Former finance minister Lim Guan Eng revealed that the 200 billion yen bond, worth RM7.2 billion at issuance, has effectively become a major foreign exchange gain for the country.

Samurai Bond

According to Finance Minister Datuk Seri Anwar Ibrahim’s parliamentary reply, the bond remains active until 2029 but the yen’s decline has significantly reduced repayment obligations. When first issued, the exchange rate was RM3.62 per 100 yen, but by December 2025 the yen had weakened 27.8% to RM2.59.

This shift reduced the principal value to RM5.2 billion, generating RM2 billion in gains. Lim noted that this comfortably offsets interest costs of about RM400 million, turning the bond into a net profit for Malaysia.

Business News