Why is Malaysia adding more debt by borrowing money from Japan?

Tun M said that he has asked to borrow money from Japan and that this borrowing will be in Yen.

So, our PH Govt's solution to reduce our national debt is to borrow more money to create more debt! 

How does borrowing more debt to reduce debt works? Only god and Tun M knows.

In the past, Tun M had borrowed heavily from Japan in Yen but had ended up in disaster. Although the interest rates on Japan loan are generally low, the appreciation of the Yen currency meant that Malaysia ended up paying double or triple of the amount loaned.

It got so bad in the past that Tun M had once sworn off borrowing in Yen when he said this in the 1990s.

_The yen's ascent to record levels is straining the finances of East Asian governments that have borrowed heavily from Japan and now must pay Tokyo back in a now more expensive currency. _

"We tried to renegotiate the loan in order to reduce slightly our debt burden to Japan," Prime Minister Mahathir bin Mohammad of Malaysia said in a recent speech in Japan. But, he added, "We were not given even one yen reduction."

It was one of the factors that caused our national debt to soar to record levels of 103.4% in the past under Tun M compared to 50.8% now.

One of the lessons learned by the previous BN Govt under Najib was to ensure that 97% of borrowings are denominated in Ringgit. 

As Malaysia controls the Ringgit, this ensures that our borrowings has no foreign currency risk and that no foreign country can declare Malaysia bankrupt.

By borrowing in Yen, Tun M is putting Malaysia back to the mercy of Forex risk which could severely weaken our country in future if the Yen continues to appreciate as it did in the past.

Why?

Anti-Wayang