Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE KUALA LUMPUR HILTON 
Tarikh/Date 	: 	05/03/84 
Tajuk/Title 	: 	THE 7TH. JOINT ANNUAL CONFERENCE 
			OF MAJECA/JAMECA, 




Yang Berbahagia Raja Tan Sri Mohar, President of MAJECA; Mr. Noboru Gotoh,
Leader of the JAMECA delegation; Excellencies; Distinguished
guests; Ladies and Gentlemen.

It is a privilege for me to be able to address this distinguished
gathering today on the occasion of the 7th. Joint Annual Conference of the
Malaysia-Japan Economic Association and its counterpart the Japan-Malaysia
Economic Association.

2. First of all, I wish to extend a warm welcome to Mr.

Gotoh, Leader of the JAMECA delegation as well as to the other
distinguished delegates of JAMECA. Secondly, I offer my sincere good
wishes to my good friend, Tan Sri Shigeo Nagano who unfortunately is
unable to be with us here today.

3. The presence of our Japanese friends augurs well for the future
relationship between Japan and Malaysia -- a relationship that has been
strengthened year after year through the cooperative efforts of the two
associations. The bonds of friendship between the two countries is further
strengthened by the establishment of the two associations. I take this
opportunity to congratulate both the Presidents of the two associations,
the executive committee members, members of the task forces as well as all
of you for the contribution towards the strengthening of the bilateral
relationship between the two countries.

4. Through the cooperative efforts of MAJECA and JAMECA, the Malaysian
Government has adopted a lot of ideas and inspirations experienced by
Japan. Foremost amongst these ideas is the Look East Policy.

5. I am sure many of you were present here in this very hall when I first
explained in some detail the basis of that policy. Today there are still
many people, both here in Malaysia and abroad, who choose to misinterpret
the ideals of that policy. I would, therefore, like to take this
opportunity to dwell on this subject once again.

6. Malaysia is a parliamentary democracy with its own unique system of
constitutional monarchy. We believe strongly in the ideals of free
enterprise. The Malaysian economy is an open economy. Since independence
27 years ago, we have not changed our belief. Indeed our perception of the
dynamic nature of the free enterprise system has not only been sustained
but it has strengthened. But this does not mean that we in Malaysia follow
in toto the "laissez faire" type of capitalism in our endeavour to develop
the country.

7. The rapid economic growth of postwar Japan, particularly in the sixties
and mid-seventies, has spurred other nations to look towards Japan for
inspiration.

Although the balance of power between East and West appears to threaten
the future of mankind, we in Malaysia still believe that a great majority
of mankind favours coexistence and international cooperation. In such a
world, Malaysia, however small she is, must positively contribute to the
realisation of a better and more prosperous life for all of mankind in a
spirit of fairness and justice.

8. The motivation behind our Look East Policy is clear. We want to develop
our country. We want to provide jobs for our people, particularly for our
young people coming out from our schools, our colleges and our
universities. Agriculture and mining cannot provide these job
opportunities because they are limited by land and resources. Indeed
increasing mechanisation for efficiency would reduce even more the jobs in
these two areas. There is no limit to the diversity and opportunities in
manufacturing. The only way we can grow and prosper is through
industrialisation. And in the East we find a number of models which are
relevant to our approach towards industrialisation.

9. We have adopted a very flexible policy on industrialisation. We have
encouraged the inflow of foreign capital, know-how and management. We have
a set of incentives to offer to foreign investors. We need foreign
investment; there is no doubt about it and for many years to come. This is
one way we can find employment for our people. Our labour force will reach
a figure of nearly 6.3 million by 1985. Of this 2.6 million will be in the
25-39 age group or 41.1% of the total labour force. The labour force in
this age group will increase by 4.9% per annum. Our working age population
is expected to grow from 8.1 million in 1980 to 9.3 million in 1985. Thus
we have to adopt certain development strategies that will provide gainful
employment to our rapidly growing work force.

10. This is the basis of our development plans and policies. The Look East
Policy is one of the ways to enable our work force to acquire new values
commensurate with our long term industrialisation programmes.

11. In our efforts to improve the management of our labour resources, the
government has initiated five types of training programmes for our youth,
namely: in-plant training, academic/technical education, executive
development training, institutional linkages in higher learning and
universities, and institutional linkages in research and development,
training institutes and administration. The first three are already
on-going programmes whereas the last two are in the preparatory
stage. These efforts are small in comparison with our needs, but we will
step up these training programmes as we begin to gather more information
on the effectiveness of each programme.

Ladies and Gentlemen, 

12. I note that your two-day conference will be focussing on exports into
Japan, invisible trade, Japanese market for rubber products, shipping, new
opportunities for Japanese investment in Malaysia, tourism, small scale
industries, high technology industries and the role of Japan, downstream
development in the petroleum industry and the construction industry.

13. All these areas of economic endeavours are of high priority to
us. Each is of special significance in our the improvement in our services
sector such as shipping, insurance and travel. Tourism and small scale
industries are sectors which are increasingly becoming of special
industrialisation programmes. For these are areas which will provide new
avenues for our small entrepreneurs and for our rapidly growing population
of working age. Small scale enterprises should be able to develop at a
much faster rate than in the past, now that we have more Malaysians being
trained in the various fields of specialisation and that our economic
structure is changing rapidly, with manufacturing increasing its share of
the gross domestic product.

14. Malaysia therefore welcomes assistance from outside sources to
modernise our small scale industries. In particular we would like to see
that large, medium and small scale industries develop in such a way that
they will reinforce the strength of each other. They must be mutually
beneficial to one another so that all the sectors of the economy will
prosper and productivity enhanced.

Ladies and Gentlemen, 

15. While I am sure that MAJECA and JAMECA would continue to play its role
in promoting greater trade and economic ties between Malaysia and Japan, I
also hope that more efforts should be made by both associations on the
need to find markets in Japan for Malaysian manufactured goods. MAJECA
have to double its efforts in assisting the Government to seek avenues for
Malaysian products, especially manufactured products. JAMECA on the other
hand, after its close and long association with its Malaysian counterpart
would, I believe, have a better understanding and perhaps sympathy towards
our need to have access to the Japanese market. As I have stated, time and
again and in various forums, that in order for developing countries to
purchase more from the developed countries, the developing countries have
to sell its produce to the developed countries. Closing one's doors to
others may result in short term gains, but in the long run it will be
detrimental to the country concerned. The prosperity of your customers
means your own prosperity. So the more you buy their goods the more
prosperous you will become. Part of Japan's prosperity today is due to the
prosperity of South East Asia. It follows that if South East Asia becomes
more prosperous, so will Japan.

16. JAMECA can play its role in putting cross our opinion to the Japanese
government and its agencies on the need for the developing countries to
gain access to the Japanese market. Likewise MAJECA has to keep its
counterparts well informed of the needs and requirements of Malaysia. I am
confident that such relationship would be of mutual benefit to our two
countries.

Ladies and Gentlemen, 

17. I am indeed happy with the progress achieved by MAJECA and JAMECA thus
far. However, you will agree with me that the scope for cooperation and
endeavours is indeed wide.

You should therefore explore new ways and means to enhance this
cooperation.

18. The presence of key businessmen and industrialists at this gathering
is evidence of the importance you place in the associations. I am
confident that your associations would strive to achieve greater
success. On this note, I have much pleasure in declaring the 7th. Joint
Annual Conference of MAJECA/JAMECA open.

Thank you.