Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : THE HILTON HOTEL, LONDON
Tarikh/Date : 22/07/87
Tajuk/Title : THE INVESTMENT SEMINAR ORGANISED BY
THE MALAYSIAN INDUSTRIAL
DEVELOPMENT AUTHORITY (MIDA)
It gives me great pleasure to address this investment
seminar in London and I would like to take this opportunity
of thanking both Peat Marwick and the British-Malaysia
Industry and Trade Association in Malaysia for their
assistance to MIDA in organising this gathering.
2. As many of you are well aware, setting up a seminar or
convention in an overseas country takes a very considerable
amount of forward planning, and when we started plans for
this seminar, we were not certain when a General Election
was to take place in Britain. As we now know, Prime
Minister Margaret Thatcher has been returned to power for a
further term, making her achievement unique among Prime
Ministers in Britain in
the twentieth century. It also probably made this seminar
possible.
Ladies and Gentlemen,
3. We are pleased to note the mood of confidence in
Britain today and credit should go to the nation's
leadership and to the British people themselves. The fact
that one of Malaysia's more important trading and industrial
partners is doing well is most certainly heartening news for
us, for in the symbiosis of a healthy relationship both
parties must be strong so that our efforts at economic and
industrial cooperation can be mutually reinforcing.
4. Malaysia has always welcomed foreign investors. We may
impose conditions in order that we share in the benefits but
we have never been anti-foreign. We have never indulged in
nationalisation. Even when we were saying "Buy British
Last", we still laid out the welcome mat for British
investors.
5. Realising the importance of political stability to
economic growth, particularly where foreign investments are
concerned, Malaysians have always opted for inter racial and
inter party trade-offs when solving their political
problems. They abhor street solutions.
6. Recently a member of a British Parliamentary delegation
asked me how many parties are there in the National Front,
the coalition which forms the Government. He was astounded
when I said there are thirteen. In the U.K., he said, it is
difficult even for two parties to cooperate in an election.
It is a measure of the tolerance of Malaysians that 13
parties can work together for years and years. It must also
be remembered that if the Malays are truly racialists, as
they have been accused of, they could rule the country on
their own. But despite having sufficient majority, they
chose to form the Government in coalition with the other
races. The result is that all races are represented in the
Government and issues are removed from the streets and
transferred to the Cabinet room. The net result is a
reduction in the tension and turmoil so common in
multiracial countries.
7. That the people endorse this approach, there can be no
doubt. The National Front and its predecessor have won
elections time and time again and formed the Government
since independence 30 years ago. The consequence is a
peaceful Malaysia which achieves economic growth with ease.
Ladies and Gentlemen,
8. I have been told that the differences of views and
opinions among the component parties of the National Front
of late has been a source of concern to some people
overseas. The fact that there are differences of views is a
sign of a healthy and vibrant democracy. The political
debates and discussions taking place in Malaysia today is
the result of the liberal attitude of the Government and a
sign of a mature democracy. It should not be considered as
a sign of political weakness. Indeed, the more significant
thing worthy of note is the ability to resolve problems time
and time again. Look back on the reports on Malaysia and
you will smile at the number of times it was reported that
Malaysia would go up in flames because of racial problems.
But we are far from being burnt. We are very much a vibrant
and democratic country. You will perhaps appreciate our
achievement more if you can imagine how difficult it would
be for you if Britain is populated by 50% Indians and
Chinese, both wanting to remain Indian and Chinese and
rejecting the British way of life.
9. Very much inter-woven within the fabric of Malaysian
politics and development is the question of the New Economic
Policy (NEP). I am sure you are familiar with the NEP which
has been designed to eradicate poverty and to restructure
society so as to reduce and eventually eliminate the
identification of race with economic functions. These
objectives are to be achieved within the context of an
expanding economy and without depriving any section of the
population. The NEP can be compared to the American
programme of "affirmative action", whereby communities that
are less economically developed are given an opportunity
to catch up with the rest.
10. Malaysia is not the first country in the world to
introduce a programme of positive support for the deprived
section of the community. In fact, the idea of graduated
taxation on income is based on the same social awareness and
principle. Economic disparity in a homogeneous society can
and often do lead to social upheavals. Imagine how much
more explosive the situation would be if, in a multiracial
society, economic disparity is directly linked with racial
differences. We believe that the NEP has succeeded in
reducing the kind of racial tensions that led to the 1969
race riots. You have only to look at several examples in
other countries to appreciate what I say.
11. Because of the present recession, we have held in
abeyance the implementation of certain provisions of the
NEP. The result is that we will not achieve the NEP target
by 1990. We feel that the reasons for the NEP will be no
less cogent after 1990 than before 1990. So long as glaring
disparities are present something has to be done to correct
them. But we are more experienced now. We will structure
the Malaysian society economically, socially and politically
in order to reduce disparities without causing too much
negative effects. The different races in Malaysia
understand this need. But, of course, there will be the
vocal minority who will make a song and dance about
everything that we do. As for the foreign investors, I can
assure them that any inconvenience will be minimal. In any
case those who invest between now and 1990 will not be
affected, whatever may be the decision on the future of the
NEP.
Ladies and Gentlemen,
12. Lately a lot of questions are being asked by foreigners
about the so called Islamic fundamentalism in Malaysia. I
believe that some people may have confused the term
fundamentalism with extremism. The two are not the same.
Islamic fundamentalism means adhering to the true teachings
of Islam, and the true teachings of Islam advocate values
which are universally acceptable. The spread of Islamic
fundamentalism should, therefore, worry no one. Indeed, it
should be welcome.
13. But admittedly there are some Muslim extremists in
Malaysia. They are intolerant of the ways of others,
including other Muslims. From the point of view of the
Islamic religion these people are wrong. And because they
are wrong, the fundamentalist Muslims, like myself, have
been able to counter them.
14. We are fortunate that Muslim extremists in Malaysia are
not violent. But they are very politically inclined.
However, they have not been able to make any headway. They
are in fact losing ground. Whereas before they formed the
Governments of two states and had as many as 16 members in
Parliament, today they control no state and won only one
Parliamentary seat in last year's General Elections. The
UMNO, the biggest Malay Muslim party, won 86 seats.
15. Malaysia is known for it religious tolerance. Freedom
of religion is enshrined in the Malaysian constitution and
Malaysians strongly uphold religious freedom and tolerance.
The religious freedom and racial harmony in Malaysia has
often been cited as an example of how a multi-religious and
multi-racial country can be stable and harmonious.
16. I have touched on these points because it appears to
surface time and time again whenever the media reports on
Malaysia. It may help to remember that Malaysian Muslims
have lived in peace and harmony with Hindus, Buddhists,
Taoists, Christians, pagans, animists, etc., for the past
200 years. Surely, they have to be tolerant to do this.
Ladies and Gentlemen,
17. The Malaysian economy has been positively improving
since the beginning of '87. Share prices are up and
dealings brisk; commodity prices have picked up and sales
volume increased, deficit trade balances have now become a
surplus and manufactured goods are yielding greater export
earnings. Growth in 1987 will be higher than projected and
foreign loans will actually shrink.
18. What has Malaysia done to effect this turnaround?
Firstly we did not panic. No currency devaluation. No
reneging on debt repayment. Basic economic policies
remained the same. The people did not throw out the
Government or adopt a new ideology or economic theory. We
made adjustments and corrections instead. We adopted a
more flexible stance. Government spending was reduced and
taxes lowered. Efficiency was improved and, where possible,
Government privatised utilities and services. Foreign
investors were given additional incentives and wooed with
greater fervour, as are the tourists.
19. We accept that commodities will never regain their old
price levels. Modern technology will increase commodity
production and reduce usage. So, we try to reduce the cost
of production and we waited patiently. Now the price of
commodities are picking up again. But we are not taken in.
We will diversify into manufacturing. It is an area that we
are not bad at. In a few years we have become the world's
biggest producer of room air-conditioners and integrated
circuits after the US and Japan. True, these are not
Malaysian owned companies. But why is it that foreign owned
companies do so well in Malaysia? Surely there must be some
Malaysian inputs. Otherwise they could be just as big and
successful in other countries. You will find this out if
you invest in manufacturing for export in Malaysia.
Ladies and Gentlemen,
20. A policy that has caused a lot of misgivings among
Europeans and Americans is Malaysia's Look East Policy.
Lurid stories have been told about Japanese and Koreans
having exclusive rights to contracts for projects and
supplies in Malaysia. There were quite a few stories of
bribery and corruption. The truth is that the Look East
Policy has nothing to do with contracts and tenders. The
best bidder wins and everywhere in the world the Japanese
and the Koreans have been able to price their goods and
services attractively. Even in England, unless you are
fiercely British, you find difficulty not to buy Japanese
goods.
21. The Look East Policy is concerned with learning
Japanese, Korean and Taiwanese work ethics, management
methods and organisation of business. These people are
obviously successful in competing with the developed
countries of the West. Surely there must be something they
are doing right. We want to know what that something is.
So, we look East.
22. But we have not stopped looking West. We have some
100,000 students studying in the West as compared to 500 in
Japan and even less in Korea. For a long time these figures
are not going to change much. So there is really little
ground for worry. Malaysians are a conservative lot. They
do not respond to change readily. They speak more and
better English that they ever will Japanese. The Look East
Policy not withstanding, you still have a considerable edge.
You know better how to use that. And the British Government
will back you. Look at Biwater. It landed one of the
biggest contracts in Malaysia.
Ladies and Gentlemen,
23. Things are looking up in Britain. The British disease
is slowly being cured. British inventiveness and
innovativeness are as strong as ever. Management is more
professional. All these add up to a powerful economic
force. It would be a pity to confine yourself only to
Britain. In Southeast Asia, Malaysia is waiting for you.
We have many things that will make you and your products
even more competitive. Unlike others you have the advantage
of knowing the language and familiarity with the systems and
the laws. Indeed, you have all the advantages in Malaysia
which others envy. We have buried the Buy British Last
policy long ago. So do come to Malaysia. You are in the best
position to nail the lie that only the Japanese can succeed
in Malaysia.
Thank you.
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