Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	KUALA LUMPUR HILTON 
Tarikh/Date 	: 	14/01/82 
Tajuk/Title  	: 	THE 12TH MEETING OF ASEAN 
			ECONOMIC MINISTERS 




Your Excellencies; Distinguished Guests; Ladies and Gentlemen.

It gives me great pleasure to welcome the Ministers and the Distinguished
Delegates to the 12th. Meeting of ASEAN Economic Ministers of which
Malaysia is honoured to be the host.

2. During the next two days, you will be deliberating on matters which are
significant to the realisation of our hopes and aspirations in regional
economic cooperation.

This Meeting will hopefully mark another significant milestone in our
efforts to consolidate and put into action the programmes that have been
envisaged by the ASEAN Concord of the Bali Summit in 1976.

3. Your deliberations and the outcome at the conclusion of this Meeting
should be in the light of the realities that the region is facing, namely
inflation, recession and no less important the political situation in
Southeast Asia. Whatever measures or programmes that will ensue from our
deliberations should be geared towards the fulfilment of our designated
goal, i.e. progress in the economic fields through regional cooperation, a
cooperation that will enable the people of our countries to enjoy the
benefits which, as citizens of one of the richest regions in the world,
they are entitled to.

Ladies and Gentlemen.

4. I wish to emphasize that in so far as Malaysia is concerned, ASEAN
remains in the forefront of our foreign policy priorities. The rationale
behind this Government's thinking in this regard is the vital role of
ASEAN as a stabilizing influence and as a catalyst in developing the
economic resilience of the region. We cannot prosper alone in a region
that is in turmoil and unstable. To prosper we have to have the kind of
regional environment that is conducive to economic growth. Malaysia's
adherence to the principles of ASEAN cooperation is therefore not
altruistic. It is enlightened self-interest. And because it is so we will
always place the interest of ASEAN as a top priority.

5. ASEAN has become an important platform for the development of closer
relations with advanced countries as well as with international
organisations. ASEAN, therefore, has an important role to play in
national, regional and international affairs. Hence, there is the need to
strengthen the machinery of our cooperation with third countries. Special
attention should be given to narrowing the front of our relations into
areas of immediate priority and urgency to our social and economic
well-being. I note that the AEM has already identified energy, shipping
and access to markets as crucial areas to ASEAN and I am confident that
the relevant committees will pay particular attention to these sectors in
formulating their project proposals. I feel that in project formulation we
should have a clear overall picture of the objectives and direction of
ASEAN's economic thrust and tailor our requirements accordingly. Unless
this is done the various committees will be pursuing their own separate
courses instead of working in tandem to meet ASEAN's priority needs.

Ladies and Gentlemen.

6. We also realise that we must constantly promote close and integrated
economic and development cooperation among us. In this respect we are
indeed encouraged that we have achieved considerable progress in various
fields.

7. In the area of trade it is heartening to note that Intra-ASEAN trade
now exceeds US $10 billion measured at current prices whereas in 1970
Intra-ASEAN trade accounted for about US $2.3 billion. In trying to
promote, facilitate and expand Intra-ASEAN trade, the Preferential Trading
Arrangement was implemented in 1978. As to date, 6,581 items have been
given tariff preferences and I understand that another batch of 1,948
items will be adopted at this Meeting.

8. One area of ASEAN Economic Cooperation which has been under scrutiny is
in the field of industry. As you are all aware there was a lot of
skepticism regarding the future of ASEAN during its formative years. In
particular, the proposal to set up five major ASEAN Industrial Projects in
each of the member countries was seen as an impractical and grandiose plan
with very little hope of success. That is why ASEAN has placed so much
emphasis on the successful implementation of the ASEAN Industrial
Projects. We see this as a cornerstone of our efforts towards
consolidating and developing economic cooperation among the member
countries. I am happy to note that substantive progress has been made
towards the implementation of the ASEAN Industrial Projects in respect of
the urea projects in Malaysia and Indonesia. I am confident that the other
ASEAN Industrial Projects would also be launched soon.

9. I would like to stress here that ASEAN should inject new ideas in
Industrial Cooperation. The idea of joint marketing as a step to boost the
respective industrialisation programmes should be seriously
examined. This, for example, can be done by drawing up a formula whereby
the country with the biggest market would enjoy the most benefits even if
the product was manufactured by a smaller country. In industrial
complementation programmes ASEAN should pursue this further, perhaps with
the private sector playing a more vigorous role. It is encouraging to note
that the ASEAN-Chambers of Commerce and Industry is now taking an active
interest in the complementation programmes. The Governments of ASEAN have
already set up the machinery for Industrial Complementation by way of
signing the Basic Agreement on ASEAN Industrial Complementation on 17th
June, 1981.

10. Industrial Cooperation in ASEAN envisages that ASEAN Governments and
the private sector should cooperate closely in order to strengthen the
economic position of ASEAN. In this regard one should not only look out
for what one stands to lose but, one should look for what the group has to
gain in the process.

11. In the field of transport and communication ASEAN has achieved some
measure of success. However, due attention has to be given to
shipping. With ASEAN's ever increasing trade volume there is a
corresponding increase in the outflow of funds for invisibles, such as
freight and insurance, from the region. We are heavily dependent on
external services in this regard and the rising freight charges are an
additional burden to the balance of payments of the ASEAN countries. It is
apparent that this is an area where ASEAN can profitably cooperate to
achieve self-reliance in shipping in order to overcome the problems
connected with the carriage of ASEAN trade not only to overseas markets
but within the ASEAN region as well.

12. I wish to draw your attention to the importance of the energy
sector. As you are all well aware, ASEAN as a whole constitutes a major
producer of conventional energy such as gas and petroleum. Yet we lack the
infrastructure and expertise and technology to fully exploit our natural
resources. Enormous investment is required if we wish to establish an all
encompassing gas and petroleum industry but this is not beyond our
capabilities and the problems are not insurmountable. I would like to urge
you to take an urgent look at the potential for ASEAN collaboration in
this sector.

13. In other areas of Intra-ASEAN cooperation, member countries of ASEAN
have initiated the ASEAN Swap Agreement in finance while in food supply
the ASEAN Food Security Reserve has been ratified.

14. While we have achieved considerable progress within ASEAN, we have
also been cooperating closely with third countries and international
organisations. I wish to stress here that it is important that ASEAN adopt
an imaginative and innovative approach in third country
co-operation. While there is a need to consolidate our relations with
third countries, this should not preclude ASEAN from having some form of
economic relations with other countries which could turn out to be no less
important dialogue partners either on a sectoral basis or in specific
areas or on the basis of regional groupings. I say this particularly in
view of the developmental stage of most ASEAN economies where middle-level
technology especially from countries such as South Korea and India are of
relevance to our present economic programmes. We need to move in this
direction so as to enlarge the effective base of ASEAN cooperation.

Ladies and Gentlemen, 

15. I feel that the time has also come where more attention should be
given to the substance of our dialogue. Some progress has been made in
this regard, but no profound results have so far emerged from our dialogue
with the various countries. I therefore welcome the present efforts in
ASEAN to review all aspects of our relations with third countries. I have
stressed earlier that our priority should be focussed on areas which are
vital to ASEAN's interests.

16. As regards commodity problems I would like to point out here that
ASEAN countries still rely heavily on the export of primary
commodities. ASEAN has made strenuous efforts to have continuous
collaboration and cooperation between the consumers and producers. I am
sure our ASEAN colleagues would join Malaysia in expressing our
displeasure at the failure of the US to ratify the Sixth International Tin
Agreement and the unprecedented US decision to dispose GSA tin outside the
US.

17. Despite our disappointment in solving commodity problems ASEAN,
however, should continue to adopt a collective approach and joint efforts
in pursuing other international economic issues in the North-South
Dialogue, the Multilateral Trade Negotiations and the Multifibre
Arrangement. As you are aware, the hopes and aspirations of the Third
World which were pinned on the outcome of the Cancun Summit on North-South
relations failed to materialise. With the lukewarm support given by the
industrialized West, in particular the United States, to the reviving of
the stalled global negotiations and with the hopes of the developing
countries in seeing a more equitable sharing of the world's wealth between
the North and the South fast diminishing, it becomes all the more
necessary for the developing countries to strengthen economic cooperation
among themselves. ASEAN's activities and efforts in the economic field so
far provide ample testimony of the grouping's resilience and success and
serves as a model and shining example to the other developing countries on
meaningful economic cooperation albeit on a sub-regional basis.

18. ASEAN has made great strides in implementing the various regional
economic cooperative programmes and in its relations with third countries
and international organisations. However, in the pursuit of progress
through development and in the desire to step up economic activities it is
important to ensure that the machinery for ASEAN regional economic
cooperation is sufficiently geared and adequately equipped to service the
grouping's varied and increasing activities. It is imperative that a
review of ASEAN's organisational structure be undertaken with a view to
improving its effectiveness in the light of changing circumstances.

19. In my considered view the restructuring of the ASEAN machinery should
be carried out in stages because it embraces a wide range of subjects. For
the moment, it is felt that there is no real need to change the basic
structure of ASEAN. The immediate need is to look into the strengthening
of the ASEAN Secretariat and the functions of the various committees. I
understand ASEAN Economic Ministers will in fact look into these issues. I
believe that whatever decisions are arrived at in the Meeting in this
regard should make ASEAN a more viable entity.

Ladies and Gentlemen, 

20. Let me wish this Meeting every success. With these words I hereby
declare this Meeting officially open.

Thank you.