Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : THE SHANGRI-LA HOTEL, KUALA LUMPUR
Tarikh/Date : 03/04/87
Tajuk/Title : THE ASIA-PACIFIC COUNCIL OF
AMERICAN CHAMBERS OF
COMMERCE MEETING
Mr. Harvey Goldstein,
Chairman of the Asia-Pacific Council of
American Chambers of Commerce;
Mr. Michael Connors,
Charge d'affaires
Embassy of the United States of America;
Mr. Russel Klingler,
President of the American
Business Council of Malaysia;
Excellencies;
Distinguished delegates;
Ladies and Gentlemen.
I am very pleased to be here this morning to address
the 37th. Semi-Annual Conference of the Asia-Pacific Council
of American Chambers of Commerce (APCAC). I believe the
APCAC is an important and influential business organisation
in the Asia-Pacific region. Hence your meeting here today
is of particular significance to Malaysia.
2. We are honoured that Kuala Lumpur has been selected as
the venue for your meeting. It will help to publicise
Malaysia, the least known of the ASEAN countries. We cannot
attract people to invest here if they do not even know where
we are.
Ladies and Gentlemen,
3. Much has been said about the Asia-Pacific region being
the next growth basin in the world. It is a fact that over
the past decade, high growth rates were the norm in this
region. Although a number of economies have been adversely
affected by the world recession, including the Malaysian
economy, future growth prospects for the Asia-Pacific basin
are considerably brighter than in most other regions. The
abundant natural resources, a responsive labour force, a
dependable infrastructure and overall stability are features
which will contribute to this optimistic view.
4. Despite this optimistic picture, we cannot deny the
fact that the world is going through a critical period.
Radical structural changes have taken place which require
new approaches. Commodities can no longer be relied upon to
give a fair return. Currencies have lost their stability
completely. Despite publicly declared commitment to
de-regulation, Governments are much more involved in
regulating world trade, urged on by the very people who
demand less Government interference.
5. It is a measure of our faith in good common sense and
confidence in our skills that risks are still being taken in
business. Malaysia is a beneficiary of this faith and
confidence as witnessed by the continued investments in the
country. To-day the big names in American industries,
particularly the electronics, are well represented in
Malaysia. And they have mostly done well - National
Semiconductor, Motorola, HP, Mostek, Monsanto, RCA, General
Electric and the rest. I am sure more will be coming if they
care to ask their friends (or rivals) who have been here
already.
Ladies and Gentlemen,
6. The United States is today one of the five major
investors in Malaysia. According to the latest survey of
manufacturing companies in production, a total of 96
existing manufacturing and tourism projects in Malaysia have
American interests, involving a total paid-up capital of
M$ 287.6 million and fixed assets of M$663.7 million. These
figures do not include American multi-nationals which have
sourced their funds from third countries such as Singapore,
Hong Kong, Bermuda and Europe. They also exclude investments
by major oil companies.
7. In 1986, of the 448 projects approved for the year, 25
projects were with American equity amounting to M$17.1
million. Sixty percent of these projects were in fact
expansion projects, clearly demonstrating the continued
confidence of existing American companies in the investment
climate in Malaysia.
Ladies and Gentlemen,
8. As I said Malaysia is not well known to Americans,
particularly the small and medium size American businesses.
Hence only the well-known companies are represented here.
True, medium and small industries seldom go abroad. But we
think we can offer them some advantages.
9. In our effort to promote Malaysia several major
programmes have been planned for this year. In May/June,
the Malaysian Industrial Development Authority (MIDA) will
be organising a series of Round-Table meetings in the US to
cover the cities of Boston, Dallas, St. Louis and
Washington, D.C.
10. In conjunction with 'Internepcon', an exhibition of
electronic semi-conductor and related service, which will be
held in Kuala Lumpur in July this year, MIDA will be
organising a seminar-cum-study tour for participants
attending the exhibition, who are mainly expected to be
Americans.
11. Another major Investment/Trade and Tourism Seminar
covering the cities of Los Angeles, Chicago and New York
will be held in September/October this year.
12. In early 1988 MIDA will organise a seminar whereby US
companies will be invited to attend an Investment Forum and
Study Tour in Malaysia. It is hoped that these measures
would assist in making Malaysia a little more known to
Americans, especially American businessmen and
entrepreneurs.
Ladies and Gentlemen,
13. The emphasis of Malaysia's development will be on
export-oriented industrialisation, accelerating growth in
priority industries selected on the basis of world
comparative advantage, manpower development, and the
acquiring of technological capability. We believe that our
future lies in the greater value-added secondary and
tertiary processing of our raw materials and in higher
technology industries. Industries located in Malaysia
utilizing these resources will enjoy certain comparative
advantages.
14. I will not enumerate what these advantages are, but the
Government has taken steps to make them more tangible. Thus
the Government has taken a number of measures over the past
years such as giving greater flexibility to manufacturers in
starting up new projects, for capacity expansion and for
product diversification. We have further relaxed the
guidelines for foreign equity participation in the
manufacturing sector and provided attractive tax incentives
for the manufacturing, agriculture and tourism sectors. The
Government has also launched the New Investment Fund (NIF)
to channel funds at preferential rates of interest for the
financing of new productive capacity in manufacturing,
agriculture and tourism. It is hoped that these measures
would further stimulate investment activities in Malaysia's
manufacturing sector.
15. We have also announced new conditions for foreign
equity and expatriate staff which I believe you are already
familiar with. These new conditions are applicable to new
foreign investments in industries whose products will not
compete with products presently being manufactured locally
for the domestic market. They also apply to expansion of
foreign-owned or partly foreign-owned industries which do
not compete against existing local industries.
16. These new incentives have met with enthusiastic and
quick responses from our traditional foreign investors. I
am sure American investors will not be found wanting.
Ladies and Gentlemen,
17. The ASEAN common market still remains a dream for the
future, but we are working hard at it. There is every
likelihood that some of the barriers will come down and a
market of 250 million people with higher purchasing power
than the billion people of China, will open up. When it
does, those industries already in place are bound to enjoy
certain advantages. Locating your industries in Malaysia or
in other ASEAN countries can mean good foresight in
investment. Already the foreign partners in two major ASEAN
Industrial Joint Ventures are reaping huge profits.
Ladies and Gentlemen,
18. The theme of your conference, "Meeting the Competitive
Challenge" is indeed appropriate, especially for this
region. There is strong competition not only between
investors keen to invest in this fast growing region, but
also between countries competing for foreign investment.
Malaysia is fully cognisant of the fact that investment
incentives exist in other Asia-Pacific countries as well,
but remains confident that our track record as evidenced by
the presence of a large number of American firms here, will
stand as effective testimony to our capability and
dependability. In addition, the new range of investment
incentives that we have introduced should continue to make
Malaysia a very attractive investment proposition.
19. As representatives of American companies operating in
the Asia Pacific region, I believe your experience and
exposure to the region will no doubt contribute towards a
greater awareness among the business sector in the United
States of the potentials that Malaysia can offer. American
technology and know-how combined with Malaysia's natural and
human resources can result in mutual benefit for Malaysia
and the American investors as evident by the many successful
American ventures todate. I would therefore urge you to
consider Malaysia as an alternative location in your plans
for expansion in the region.
20. Although Malaysia welcomes foreign investment from all
friendly countries, the United States has always been a
preferred source because of the technology and expertise
that American corporations have to offer. We hope that
American investors would contribute toward the development
of this country by imparting their expertise and
technological know-how.
21. A word about protectionism. It is the surest means to
reduce world trade and impoverish the already poor. Thus
markets will shrink not only for products of developing
countries but those of developed countries as well. Poor
countries cannot buy the capital and consumer products which
they can never manufacture themselves. Reduced world trade
in the end will impoverish all of us -- i.e. the developed
and the developing countries. As american businessmen very
much involved in foreign trade, I know you will agree with
me. I commend your efforts to make the US Government
appreciate the need to reject protectionism.
Ladies and Gentlemen,
22. I would like to thank the Asia-Pacific Council of the
American Chambers of Commerce for inviting me to share my
views with you at this meeting. I know you have worked hard
in the past few days but I do hope you have some time off to
see a little of Kuala Lumpur and perhaps after the meeting,
a little of the rest of Malaysia. I wish you success in
your deliberations and hope your meeting here today is
another indicator of greater American interest and
participation in Malaysia's economic development and
progress.
Thank you.
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