Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : CARACAS, VENEZUELA
Tarikh/Date : 02/08/90
Tajuk/Title : SPEECH TO VENEZUELAN BUSINESSMEN
It gives me great pleasure to be able to address you
today. Your nation which is so geographically distant from
Malaysia and so very different in terms of cultural and
socio-economic profiles, yet possesses striking similarities
to my own country, Malaysia. Therefore I am very glad to be
here tonight.
2. Venezuela, with a history of Spanish colonial rule,
achieved independence long ago in the last century.
Malaysia has, similarly, a colonial past under the British
rule, but our independence has been relatively recent, since
1957. In terms of land mass, Venezuela's 916,000 square km.
is almost three times Malaysia's total area of 330,000
square km. Both Venezuela and Malaysia have very young pop-
ulations with between 60% - 70% below the age of 40. Both
our countries have respective national languages. In our
case, Bahasa Malaysia. But, just as English is your lan-
guage of commerce and industry, English is also widely used
in Malaysia as the language of business.
3. The diversities and similarities in the socio-economic
profile of our countries are equally reflected in the eco-
nomic sector. Malaysia commenced its economic history based
upon its commodiites, and today, as you are aware, Malaysia
is a world leader in the export of oil and gas. Over the
last few years Malaysia has also launched itself into manu-
facturing to inject greater dynamism into the economy and to
create employment for our growing population.
4. I understand that Venezuela has also a similar history
of resource-based growth with products such as iron, coffee,
cocoa and livestock, and, of course, oil, which has become a
strong pillar of your economy. It has been stated that
Venezuela possesses the world's largest oil reserves outside
of the Middle East and the Soviet Union.
Ladies and Gentlemen,
5. I would now like to touch on Malaysia's manufacturing
sector, the sector to spearhead Malaysia's economic growth.
This priority given to the manufacturing sector has been
relatively a recent phenomenon in Malaysia. In 1967, 10
years after Malaysia's independence, the manufacturing sec-
tor contributed less than 12% to the Gross Domestic Product
(GDP) of our nation. The major contributing sectors at that
time were agriculture and mining. However, by 1989 the man-
ufacturing sector's contribution had risen to more than 25%
of the GDP compared with a 20.6% contribution by the agri-
cultural sector. The manufacturing sector's contribution is
expected to expand even further. Whereas our agricultural
sector too will grow in size, its relative contribution to
the GDP is expected to decline slightly.
6. In respect of growth rates, the manufacturing sector
generated 12% growth in 1989 as compared to the whole econ-
omy which registered a growth rate of 8.5%. It is
conservatively expected that in 1990 the manufacturing sec-
tor will register an 11% growth rate compared to 8.3% for
the whole economy.
7. Whereas in the past, and in fact even towards the mid-
dle of the 1970s, the manufacturing sector's contribution to
export earnings was nominal, today, Malaysia's manufacturing
sector has become the top export earner. Last year, the
sector contributed export earnings in excess of M$36 billion
(US$13.6 billion) or 54% of total exports including exports
of petroleum. Manufactured exports have thus overtaken even
the combined exports of commodities and petroleum. Today,
Malaysia is the world's largest exporter of electronic semi-
conductors and also of late-dipped goods such as gloves and
catheters. We are also the second largest exporter of room
air-conditioners. Within the next two or three years
Malaysia may well become one of the world leaders in the ex-
port of TV sets and video cassette recorders.
8. Malaysia thus sees itself poised to face the challenges
of the 1990s with an increasingly important role assigned to
the export-oriented manufacturing sector. Malaysia is mov-
ing into an era of high-technology not only in electrical
and electronics but also in products based upon our natural
resources. Malaysia's engineering sector will also experi-
ence high technology growth, not only in respect of preci-
sion engineering industries but also in heavy industries as
exemplified by the success of the Malaysian car -- the Pro-
ton Saga. The Proton Saga has been well received in the
markets of Europe and is targeted to achieve 80% local con-
tent by 1992.
Ladies and Gentlemen,
9. It has all too often been stated by the world's leading
economists and business leaders that the centre of gravity
of economic growth during the next decade will revolve
around the Pacific Basin. Within the Pacific Basin itself
the countries of the ASEAN region, namely Brunei, Malaysia,
the Philippines, Indonesia, Singapore and Thailand are al-
ready demostrating growth performances far exceeding those
of other areas in the world. Within this ASEAN region,
Malaysia stands as a growth centre offering an investment
environment of stability, confidence and dynamism. Many
companies from leading industrialised nations have identi-
fied Malaysia as a springboard to meet the challenges of the
expanding markets in the Asia-Pacific region and also as a
centre for exports back to America and Europe.
10. For long, developing countries have looked towards de-
veloped nations as the only source and salvation for our
economic development. However, today, while we continue to
look towards developed nations, there is great potential for
economic cooperation between the countries of the South.
Both our countries, I am confident, have something to offer
to each other. We can make a modest beginning and build on
this new relationship.
11. To those of you who wish to expand your business inter-
ests into the Asia-Pacific region you may wish to examine
the potential that Malaysia offers. Malaysia is an attrac-
tive base for any businessman seeking to expand into and to
take advantage of the potential that the Asia-Pacific region
offers. The factors that contribute to Malaysia's invest-
ment environment include political stability, economic
strength, a sound administration, a trainable and responsive
work force, high productivity, well-developed
infrastructures and a highly efficient banking and financing
system. Malaysia has always welcomed foreign investment
ever since it achieved independence in 1957. Malaysia of-
fers a package of tax holidays and a series of export and
other incentives. Malaysia also offers a quality of life
conducive to the foreign investor.
Ladies and Gentlemen,
12. I am confident that this new relationship that has been
established as a result of my visit to your country will in-
crease business links and generate a greater flow of trade
and investments between our two countries. Even if you do
not come to invest in Malaysia, we most certainly welcome
you as a tourist. 1990 has been declared by Malaysia as the
"Visit Malaysia Year". However, if you can't make it this
year, let me assure you that whatever year you visit
Malaysia, you will be welcomed.
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