Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE HILTON HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	10/11/87 
Tajuk/Title  	: 	THE MALAYSIAN-ARAB TRADE AND 
			INVESTMENT CONFERENCE 




 Excellencies;
Distinguished guests;
Ladies and gentlemen.
    It   gives  me  great  pleasure  to  be  here  at  this
Malaysian-Arab Trade and Investment Conference.    The  fact
that this Conference is on today, as I understand it, is due
to  the  initiative of certain members of the private sector
who  have  been  concerned  about  the  very  limited   Arab
investments  in  this country.  I would like to congratulate
the  organizing  committee  for   making   this   conference
possible. The  Fleet  Group should also be congratulated for
the  pro-active role that they have undertaken in helping to
organize this meeting.
2.   I    particularly   welcome   the   holding   of   this
Malaysian-Arab Trade and Invesment Conference  because  Arab
nations   are   perhaps   among  the  few  capital-exporting
countries  that  have  not  been exposed to  the  investment
opportunities that Malaysia has to offer.  Over the last two
years we have had  investment  conferences  in  Malaysia for
Germans, Japanese, Scandinavians, British, and others. It is
thus most befitting that such a  Conference for  one  of the
most significant  group of capital-exporting  nations in the
world  be  also held in Malaysia.
3.   Malaysia at one time looked towards Arab  nations  with
considerable amount of anticipation for inflow of investment
funds  into  private   sector   projects.    The   Malaysian
Industrial  Development  Authority  or MIDA, the  government
agency responsible  for investment promotion, even set up an
office   in the Middle East to promote Arab investments into
Malaysia.   However,  since  at that time,  Arab  investment
interests were focussed towards the West, there  was  little
response to  MIDA's  efforts  to attract Arab investors. The
MIDA office was consequently closed.
4.   To  date  Arab  investments in the manufacturing sector
total only about $43 million ringgit and you will admit,  it
does  not  in  any way reflect the true strength of the Arab
investment   potential.   There   are,   of   course,   Arab
investments  in  various  Malaysian  plantations and trading
companies which are quite significant.
Ladies and gentlemen,
5.   Many  investors  from  numerous  countries  have  found
Malaysia to be a very hospitable and profitable  environment
for  their  projects  and  I  hope that this Conference will
reveal to all of you the prospects for  profits that can  be
made in Malaysia.
6.   The  investment  opportunities  in  Malaysia  will   be
explained to you by various speakers in this Conference. You
will  be told that opportunities in Malaysia lie not only in
manufacturing,  but  also  in  agricultural  and  agro-based
projects,  in the various government plans for privatisation
and  that  joint  venture  partners  can  be  both  from the
private sector  as  well  as  semi-government  organisations
authorised to undertake private sector investments.
7.   We  appreciate  that  Arab  investors  may not have the
technological expertise or  export  marketing  contacts  for
some of the projects that Malaysia wishes to promote.  It is
in  this  context that we envisage that projects that are to
be formed as Malaysian-Arab joint ventures may have to  have
third  party inputs of technology, export marketing contacts
and  even  perhaps  capital.  However,  we  realize that  as
investors  your  contacts are world-wide and you have access
to the necessary foreign  technology  and  knowledge  inputs
much  more  than  most Malaysian  businessmen  may have, and
thus  we  welcome you to bring  in this third  party element
together with your investments.
8.   I have been told that it is often  the  practice  among
Arab  investors  to  look  for  investment  opportunities in
existing  business  ventures  and  to  either  buy over  the
company,   or to form a joint venture with such enterprises.
This  appears  to  have  been  the  principal  trend of Arab
investments in the West.  However, though equity acquisition
and  takeovers  are  possible,  we  would  like  to see Arab
investors  helping  this  nation  in   enlarging  the  total
economic  cake with the establishment of new projects.  Most
of the foreign investments in Malaysia,  be it from America,
Europe, Japan or elsewhere, have been of the nature  of  new
enterprises.  These projects  have  also  garnered  handsome
profits for the investors.  I hope that Arab investors  will
also  pursue this particular pattern  of  investments, so as
not to miss out on the opportunities that others are already
reaping.
Ladies and gentlemen,
9.   When you plan to invest in any country, I am sure that,
among  your  critical  concerns,  would  be  the   political
stability  and  economic  strength  of the  nation  and  the
policies   that  the  Government  follows  to  encourage and
protect the rights of foreign investors.  In this regard the
history of  this  country  and   our   track   record in the
practice of Parliamentary Democracy is your  best  assurance
of the  political stability of this nation. In addition, the
economic  strength  of this   nation  is   founded  on   the
strength  of   our  world  pre-eminence  in  the  export  of
commodities such as rubber, tin, palm oil,  hardwood  timber
and  pepper.  Our petroleum industry has also helped, though
this   is  but a fraction of those in the Arab nations.  The
recent   successes   that   we   have   engendered   in  the
manufacturings ector, that has made Malaysia today among the
world leaders in the exports of electronic  semi-conductors,
room   air-conditioners,   rubber   gloves,  swimming  caps,
catheters  and refined  palm  oil, are all assurances to you
of  the  basic  soundness  and  strength  of  the  Malaysian
investment  environment.
10.  The  policies  of  the Government in respect of foreign
investments are very clearly defined.  However, I would like
to stress that we welcome Arab investors to hold majority or
even 100% foreign ownership in projects that fall within our
guidelines.  For joint venture projects, you  will  find  no
shortage  of the Malaysian parties eager to talk to you.  As
the equity guidelines have been well accepted  by  investors
from  other  nations,  I  am  sure  that you will find these
policies  equally  agreeable.   The  Government   has   also
allowed  for  foreign  ownership of land in this country and
this  policy may  encourage  you   to   take   advantage  of
the  vast  opportunities in agricultural development in this
country. Indeed,   there   are   many  real-estate  projects
already completed which are worth  acquiring as the property
market is expected to improve soon.
11.  When  you  look  at  Malaysia,  you may perceive the 16
million  population  of  this  country  as  relatively small
compared  to  the  other countries in this region.  However,
the  population  figures  for this country does not  by  any
means   measure the purchasing power of the nation.  Indeed,
comparison of trade figures, GNP and per capita income would
indicate  that  in  terms  of  economic performance  we  are
almost  as  big as our giant neighbours.  Also, when  you do
look  at  Malaysia, you must look at it from the perspective
of ASEAN and that the 16 million base population of Malaysia
gives you  access  to  the markets of the ASEAN nations with
270 million inhabitants.Various schemes have been formulated
and  are  being  formulated  by  the Governments of ASEAN to
enable investors to take  advantage  of  the market strength
that ASEAN affords.  Arab investors should seriously look at
this aspect of investments in this region  when  considering
Malaysia as your base for investments.
Ladies and gentlemen,
12.  The global economic situation and the uncertainties and
conflicts  that  have  arisen  in various parts of the world
call for very pragmatic approaches towards  investments  and
the need to diversify one's investments.  To date it appears
that most of the Arab investments are in Europe and America.
Malaysia  offers  you  an  alternative and we hope that this
Conference will convince you of the potential and  prospects
for  investments  in  Malaysia,  and that your ventures here
will  be  equally,  if  not  more,  profitable   than   your
investments in other nations.
13.  The  Malaysian  Government will assist you in every way
possible to ensure the success  of  your  projects  in  this
country.    Our  continued interest in trade and investments
with  Arab  nations  is  underlined  not   merely  by   this
Conference, but by the  very pro-active attitude we continue
to   take  to  reach out and to expose Arab investors to the
opportunities that Malaysia offers.
Ladies and Gentlemen,
14.  With these words, it gives me great pleasure to declare
this Conference open.