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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	MUNICH 
Tarikh/Date 	: 	21/09/88 
Tajuk/Title  	: 	THE OFFICIAL DINNER HOSTED BY HIS 
			EXCELLENCY DR. FRANZ JOSEF STRAUSS 
			MINISTER PRESIDENT OF BAVARIA 




 Your Excellency Dr. Franz Josef Strauss,
     Minister-President of Bavaria;
Excellencies;
Ladies and Gentlemen,
    I  am  happy to be in this beautiful city of Munich and
honoured to meet with Your Excellency.    May  I  take  this
opportunity  to thank the Government of the State of Bavaria
for the kind hospitality accorded to me and  my  delegation.
It  is  a pleasure for me to be in this city again, which is
famous for its culture and traditions, after my  last  visit
here eight years ago.
Your Excellency,
2.   The  State  of  Bavaria  has  not  only outshined other
states of the Federal Republic of Germany  in  its  economic
growth but also many other EEC member countries in the past.
The  economic performance of Bavaria is indeed exemplary and
a source of inspiration for countries such as Malaysia.    I
am  pleased  to say that Malaysia and Bavaria have long been
trade partners though on a minimal scale.  Malaysia accounts
for only 0.4% of total Bavarian  imports  and  0.2%  of  her
total exports.
3.   In  view of Bavaria's positive economic outlook and the
availability  of   many   important   industries   such   as
electronics,  automobile,  timber,  textiles and garments as
well as pharmaceuticals and chemicals, there is obviously an
abundant scope for  increased  trade  with  Malaysia.    The
strength of the Deutschemark has certainly made imports from
countries  like Malaysia very much cheaper.  In view of this
Bavarian companies with existing joint-venture operations in
Malaysia could source more of their material and  components
from Malaysia.
4.   There  are  also  other  areas in which increased trade
between Malaysia and the State of Bavaria could be achieved.
One of these is for  Bavaria  to  increase  her  imports  of
timber  and timber products as well as textiles and garments
from Malaysia.  Bavaria is also said to be  the  centre  for
handicraft   industries   in  the  FRG  and  its  works  are
internationally acclaimed.  The handicraft fair  of  Munich,
which  has  developed into an international fair, underlines
the importance of Bavaria as a centre for  handiwork.    The
Malaysian Handicraft Board had several times participated in
this  fair.  In view of the leading position of this sector,
perhaps Bavaria could look into areas of mutual  cooperation
with Malaysia in the handicraft industry.
5.   There  are  a  lot  of similarities between Bavaria and
Malaysia in the economic sector.   Bavaria,  whose  dominant
economic activity in the early 50's was agriculture, has now
emerged and transformed itself into a modern industrial land
with the industrial sector as the major contribution to GDP,
and  employment  generator.   The Malaysian economy has also
been heavily dependent on its agricultural sector but  since
the   late   60's   the   Government   has  embarked  on  an
industrialisation programme which has borne fruit.    Today,
the   industrial   sector   has   emerged  as  an  important
contributor to economic growth,  employment  generation  and
exports.
Your Excellency,
6.   It  is  the Malaysian Government's objective to develop
further the industrial sector to the extent it  will  become
the  major  contributor  to our GDP and economic growth.  In
this aspect, the Government has implemented liberal policies
on  foreign  investment   and   offers   attractive   fiscal
incentives.
7.   The  Federal  Republic of Germany is one of the largest
investors in Malaysia, and Bavaria in particular has been  a
major  source  of  German investment in our country.    Many
German companies have established projects in Malaysia.   We
would  like  to  see  more  German  investors  to  take  the
opportunity of the positive investment climate in Malaysia.
8.   It is also our  hope  that  Bavaria,  with  its  highly
developed industrial sector, could be an important source of
know-how and capital for Malaysia.  Bavarian entrepreneurial
skills,  technology  and  expertise  can  combine  with  our
resources and diligent  workforce  to  establish  industrial
projects  in  Malaysia  for our mutual benefit.  Many German
companies that are already in Malaysia  had  expanded  their
operation  over  the  years.    This  is  a testimony to the
attractive environment that Malaysia provides.
Your Excellency,
9.   My visit to Bavaria is aimed  at  further  intensifying
the  existing  bilateral  economic relations between Bavaria
and Malaysia.  I have in my delegation Malaysian businessmen
who are here to  meet  potential  Bavarian  businessmen  and
industrialists,  to  discuss  possible  collaboration in the
various economic sectors.   It is  our  hope  that  Bavarian
industrialists  and  businessmen  would  visit  Malaysia  to
explore the business opportunities.
Your Excellency,
10.  May I thank you, once again, for your kind hospitality.
My wife and I and members of the Malaysian  delegation  look
forward  to  our  stay  in this city, and hope to be able to
reciprocate your hospitality by welcoming you to Malaysia.

 

 



 
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