Speechs in the year
Tempat/Venue 	: 	SEOUL, KOREA 
Tarikh/Date 	: 	12/09/90 

 His Excellency President Roh Tae-Woo; Madam Kim Ok-Sook; His Excellency
Prime Minister Kang Young-Hoon; Madam Kim Hyo-Soo; Distinguished Guests; 

Ladies and Gentlemen.

On behalf of my wife and members of my delegation, I would like to first
of all thank you, Mr. President, and the Government and people of the
Republic of Korea for the very warm welcome and hospitality that has been
extended to us since our arrival in Seoul. It is a great pleasure for us
to be here in Korea among friends.

2. Two years ago, I had the pleasure of welcoming Your Excellency in Kuala
Lumpur. We had a very useful exchange of views on a number of important
issues. Much has happened since then. The world today is a very different
one and we need to take stock of the changes that have taken place and
develop new strategies for enhancing our relations in the next decade.

3. In reviewing our bilateral relations over the last few years, I am
struck at how much progress we have achieved. In terms of agreements alone
we now have in place an exten- sive network that has proven conducive to
the rapid develop- ment of relations. We have concluded agreements
covering trade, avoidance of double taxation, scientific and techni- cal
cooperation, investment guarantees, air services and maritime transport.

4. Both Korea and Malaysia have made great strides in the area of
bilateral trade. The Republic of Korea is today Malaysia's sixth largest
Asian trading partner and our fourth largest export market. Total trade
last year stood at almost M$5 billion. I am happy to note that Malaysia
has emerged as a major supplier of commodities for Korea's in-
dustries. Malaysia currently accounts for 74% of Korea's rubber and latex
requirements, 95% of Korea's palm oil im- ports, 42% of Korea's sawn log
requirements and nearly 15% of its crude oil needs. Korea can continue to
depend on Malaysia as a reliable and competitive source of these im-
portant commodities. At the same time, Malaysia's exports of manufactured
goods to Korea have also increased and now account for more than 15% of
total exports.

5. In the other direction, the Republic of Korea's exports to Malaysia
have also risen significantly, registering a growth of over 27% in the
first few months of this year alone. As the pace of Malaysia's
industrialisation gathers momentum and with a growth rate of over 10%
forecast for this year, I expect Korea's share of the Malaysian market to
rise even further.

6. Apart from trade, Korea is particularly well known in Malaysia for its
expertise in the construction industry. Korean companies have been, and
are major participants in the construction of highways, bridges,
industrial plants and office and residential complexes. I want to take
this op- portunity to reiterate that Korean companies will always be
welcomed in Malaysia under our open economic system. Our trade and
economic relations are therefore mutually benefi- cial and we complement
each others economies well.

7. If there is one area where more can be done it is in the field of
investments in the manufacturing sector where Korea continues to lag
behind Taiwan, Singapore and other Asian economies. Up till the end of
1989, only some 76 projects with total capital investment amounting to
M$302 million had been approved. This compares with M$3.3 billion from
Taiwan alone. I would therefore like to invite more South Korean investors
to Malaysia. They can be assured of a conducive and profitable business

Mr. President, 

Ladies and Gentlemen, 

8. A very important aspect of our relations is the "Look East Policy" that
was initiated by my Government in early 1982. From our perspective, the
results of the programmes thus far have been impressive. Where once there
was none at all, now nearly 600 Malaysians have been trained in Korea in
engineering, management and other disciplines at Korean uni- versities,
private corporations and government institutions. These Malaysians are now
contributing effectively to our de- velopment effort as well as carrying
forward the relation- ship between the private sectors of our two
countries. I wish to record here my deep appreciation to you, Mr. Presi-
dent, to your Government and to the many Korean corporations that have
made this program and its success possible. I be- lieve that the Look East
Policy has become an important bond in the overall relationship between
our two countries and we hope it will be maintained.

9. These are, by any measure, substantial achievements which we can all be
proud of. The challenge ahead is how to maintain these mutually beneficial
ties in the light of the changes that are taking place both regionally and
interna- tionally. Europe, for example, is awash in change and new
opportunities seemingly abound. Trade orientated countries like ours must
of course always be alert to possible new ob- stacles and opportunities
wherever they may occur. There are also political imperatives that we all
must consider. Korea has undertaken several new initiatives relating to
Europe culminating in Your Excellency's historic meeting with President
Gorbachev only a few months ago. Malaysia views these as positive
developments and we wish you every success in these endeavours. On our
part, we too are re- viewing our relations with Europe and we believe that
there is much to be gained by closer ties. Our private sectors might even
want to consider linking up and jointly exploit- ing business
opportunities in Europe. Perhaps a three-way partnership between Korean
capital and technology, Malaysian capital and raw materials and local
interests might come in useful and profitable.

10. We hope however that Korea-Malaysia relations will con- tinue to enjoy
an important place in your strategies as it is in ours. Ours has been a
long and mutually beneficial relationship and it must not be neglected.

Mr. President, 

Ladies and Gentlemen, 

11. An area that is very close to our heart is South-South
cooperation. Malaysia together with other like-minded coun- tries have
taken the initiative to expand and deepen the scope of South-South
cooperation. In June this year the leaders of 15 South countries met in
Kuala Lumpur to discuss practical ways to expand South-South
cooperation. The Sum- mit was in many ways a landmark event in the history
of the South. Several new initiatives were launched which I be- lieve will
quicken the pace of South-South cooperation. We are convinced that
South-South cooperation is not simply an ideal but a very viable and
mutually beneficial economic proposition.

12. I am happy to note that Korea shares Malaysia's commit- ment to
South-South cooperation. The financial support ex- tended by Korea to the
work of the South Commission testifies to this. The developing countries
of the South can learn much from Korea. As I mentioned earlier it was this
realization that led to Malaysia's own Look East Pol- icy. Indeed your
economic success is an inspiration to all of us in the South.

13. On the political level, we have to be constantly alert to the
challenges as well as to the opportunities which have emerged in the light
of recent events. While the direction of detente has been fairly set in
the West, the impact of these changes in the Asia Pacific is less
clear. It is our hope these changes will result in a general lessening of
tension that could make for a more stable situation partic- ularly in
Northeast Asia. We support the peaceful reunifi- cation of the Korean
Peninsula, an objective that is greatly cherished by the Korean people and
shared by the Malaysian people.

14. Malaysia and its ASEAN partners are committed to re- gional peace and
stability through cooperation and close consultations. We are happy that
the Republic of Korea's relationship with ASEAN has now been
institutionalised at the sectoral dialogue level. It is our hope that this
will now lead to closer economic collaboration between the ASEAN countries
and Korea and that it will also contribute to the process of consultation
and cooperation in the wider Asia- Pacific region.

15. While we continue to search for ways to enhance the se- curity of the
Asia-Pacific region, it must not be forgotten that protectionism and
economic and trade frictions pose an even greater danger to our region. If
no agreement is reached on causes and solutions, the free trade system
upon which the region's prosperity has been premised will suffer. Managed
trade or purely bilateral approaches are not viable solutions. It is
therefore necessary for us to help sustain a free and open trading system
both at the bilateral and re- gional levels.

16. Before I conclude, may I once again thank you Mr. President and Madam
Kim Ok-sook for the warm welcome you have extended to us and for the
exquisite dinner in our honour this evening.


Ladies and Gentlemen, 

17. May I now invite you to join me in a toast to the con- tinued good
health of the President of the Republic of Korea and Madam Kim Ok-sook, to
the continued prosperity and well- being of the Government and people of
the Republic of Korea and to the friendship and cooperation between the
Republic of Korea and Malaysia.

Thank you.