Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : THE PAN PACIFIC HOTEL KUALA
LUMPUR (K.L)
Tarikh/Date : 27/03/90
Tajuk/Title : THE FIRST MEETING OF THE TAIPEI
INVESTORS ASSOCIATION IN MALAYSIA
Distinguished guests;
Ladies and gentlemen,
I would like to thank the Taipei Investors' Association
in Malaysia for inviting me to address this inaugural meet-
ing of your Association. I would also like to congratulate
members of the Taiwanese business community in Malaysia who
have had the foresight to initiate the formation of this As-
sociation.
2. Today's event signals the coming of age of Taiwanese
investments in Malaysia. In the past, when Malaysians men-
tioned Taiwan, we were either talking about Malaysian stu-
dents in Taiwan's universities, about the latest movies from
Taiwan, or about Taiwanese film stars who are household
names in Malaysia.
3. Today, when we mention Taiwan, we are probably talking
about the latest project set up by the Taiwanese investors.
Only a few years ago there was hardly any Taiwanese invest-
ment in Malaysia. Then the small and medium-scale companies
made their first move into Malaysia. Today, we see the big
names such as the Hua Loong Group, Evergreen and Acer.
4. Over the past few years, the dynamism of Taiwanese in-
vestment interest in Malaysia has been impressive. In 1987,
Taiwan took third place after Singapore and Japan in terms
of number of manufacturing projects approved. In 1988,
Taiwan stepped into Japan's shoes to take second place, and
in 1989 Taiwan surpassed Singapore to take top position. We
are confident that Taiwanese investments will continue to be
substantial in the years to come.
Ladies and gentlemen,
5. The Malaysian press is also contributing to our new
perception of Taiwan. Besides reporting intensively on new
Taiwanese investments, our newspapers also give coverage to
the many Taiwanese business delegations that come to
Malaysia to explore business opportunities. We hear of
Taiwanese companies planning to invest by the hundreds of
millions in a certain state, we hear of Taiwanese helping to
develop an industrial estate, and we hear of seminars for
Taiwanese investors. Now, what does this mean to Taiwanese
investors and, particularly, to your Association?
6. By virtue of the growing prominence of Taiwanese in-
vestments in Malaysia, every latest development or move made
by Taiwanese investors seem to be highlighted. Of course,
if it is good news, nobody really minds. It is the negative
reports that causes people to sit up; such as the stories of
Taiwanese purchase of industrial land for speculative pur-
poses. I do not want to elaborate on these negative issues.
I touched upon this matter merely to show that there is a
need for an association in Malaysia such as yours to provide
a moderating influence on such negative reports. With the
formation of your Association, there is now a responsible
voice to speak on behalf of Taiwanese investors in Malaysia,
and your Association can play a major role in preventing an-
ything from happening which will smear the good name of the
whole community.
7. Whatever the issues may be, there is no doubt that the
growing prominence of Taiwanese investments in Malaysia puts
a greater requirement on Taiwanese companies in this country
to act with responsibility and to be good corporate citi-
zens. You are businessmen, and as businessmen you would be
aware that in business one irresponsible action sometimes
wipes out a whole lifetime of good business relations. Sim-
ilarly, it needs only one irresponsible action by only one
Taiwanese investor to possibly jeopardise future business
negotiations in Malaysia by Taiwanese businessmen.
Ladies and gentlemen,
8. The dramatic upsurge in Taiwanese interest in Malaysia,
especially over the last two years, is by no means a passing
phenomena. It might interest you to know that the number of
Taiwanese investment projects approved, that is 298
projects, in just the two years, 1988 and 1989, totalled
more than all Taiwanese projects approved before 1988. This
similarly applies to proposed Taiwanese capital investments
in 1988 and 1989 which totalled more than M$2.9 billion.
9. This confidence in Malaysia's investment climate by the
Taiwanese business community and the recognition of Malaysia
as one of the most, if not the most, attractive countries to
invest in the South-East Asian region has been justified by
the remarkable success of Taiwanese companies in Malaysia --
success not only in terms of efficiently relocating their
manufacturing operations, but also in terms of dollars and
cents.
10. The upsurge in Taiwanese investments can of course be
attributed to a number of, what people call, 'push factors'
such as the appreciation of the NT Dollar, increase in wage
rates in Taiwan, shortage of manpower, and the loss of GSP
status. But, I believe, this tremendous increase in
Taiwanese interest in our country is also due to a large ex-
tent to the 'pull factors' in Malaysia.
11. I believe one of the main concerns of Taiwanese indus-
trialists who invest overseas is the lack of protection for
their investments abroad. One of the strongest pull factors
in Malaysia is our political stability. As you know, the
same government has been ruling the country since Malaysia's
independence in 1957. What does this mean to you? It means
the continuation of government policies which enable the in-
vestor to conduct his business in a predictable environment.
Your investment also receives protection under our legal
system. All foreign investments are protected by Malaysia's
laws.
12. Whatever the other attractions Malaysia has in terms of
competitive labour costs, land price and so forth, I believe
the prime factor any investor should be concerned with is
the attitude of the government and people of that country.
We have in Malaysia, a government and people that are tuned
towards acceptance of foreign investments as a means for
achieving economic growth and industrialisation. This atti-
tude ensures not just a fair deal but a welcome to the for-
eign investors. No one wants to do business in an
environment of uncertainty and hostility.
13. A major concern would be infrastructural development.
Transport investments by the Federal Government have aver-
aged some 18% of development expenditure under our Malaysia
Plans, with roads and ports receiving substantial allo-
cations. We understand and are fully aware of the need for
good infrastructural facilities in order to make investments
worthwhile and profitable.
14. Another area which we have looked into is the necessity
for cutting down on red-tape. We have implemented certain
measures such as the Centre for Investments in the Malaysian
Industrial Development Authority or MIDA. At State level,
the State Economic Development Corporations are implementing
the same concept.
15. Lastly, I would like to mention that Malaysia is always
looking for good corporate citizens in our business commu-
nity. And one pleasing aspect of Taiwanese projects on the
ground is that about 95% of them are on a joint-venture ba-
sis with Malaysians. Although this is based on MIDA's sur-
vey of about 100 Taiwan companies in production as at the
end of 1988, and this picture might have changed slightly by
now, it demonstrates the compatibility of Taiwanese and
Malaysian entrepreneurs and we would like to encourage more
of such cooperation.
Ladies and gentlemen,
16. Once again I thank you all for inviting me to this
first meeting of your Association. I am sure the formation
of this body augurs well not only for its members but also
for better trade and economic relations between our two
countries.
Thank you.
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