Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : KUALA LUMPUR HILTON, KUALA
LUMPUR (K.L)
Tarikh/Date : 28/02/91
Tajuk/Title : THE INAUGURATION OF THE MALAYSIAN
BUSINESS COUNCIL
It is a great pleasure for me to be here today for the
inauguration of the Malaysian Business Council, and as its
Chairman I thank you for your presence here this morning.
2. We are meeting at the beginning of the decade of the
Nineties -- a time of great challenge for our nation as
well as for the region. As a nation we are almost thirty-
four years old. That is not very old as nations go but for
a developing country which has been able to control its own
destiny only after independence it is a very meaningful pe-
riod of time.
3. In the first three decades of nationhood we have moved
rapidly from being a low-income, undeveloped economy, rely-
ing merely on rubber and tin as our economic mainstay, to a
nation that has diversified into the services and the indus-
trial sector, backed by a sophisticated financial system.
Yet far from neglecting the primary produce, we have en-
hanced our competitiveness and diversified into many new
commodities which earn us a lot of foreign exchange.
4. By any standard we have done well but there is no time
to rest on our laurels. We must aim to become a developed
country at par with those of Europe and North America. It
may not happen tomorrow or next year or even by the end of
this millennium but we must not be discouraged. Everything
must have a beginning. We have gone beyond the first step.
Now we must continue at a quickened pace.
5. To expedite the attainment of our goal we must set new
standards and make quantum leaps -- in terms of all the key
institutions of our country, in terms of our economic cul-
ture, adjustments and innovations. Above all we must under-
stand our goal and the road towards it. We, here, means all
of us - the government, the private sector, workers, manage-
ment and all the institutions which are directly or indi-
rectly involved in the development of this nation.
6. This national aspiration must be shared by all, at ev-
ery level. It is not a grandiose dream that we are
targetting at. It is an achieveable vision, provided of
course that we all pull together.
7. The Government has already espoused the Malaysia Incor-
porated concept, a concept that is based on a partnership
between the Government and the private sector, a concept of
a nation as a giant corporation in which the public and pri-
vate sectors are together tasked with ensuring its success
and are entitled to share the benefits. Despite initial
scepticism, the idea has caught on. Today government offi-
cers are more helpful towards the private sector and they
are constantly improving their service through innovative
ways. Gone are the days when the success or otherwise of
the private sector are no concern of government officers.
They now accept and appreciate that the private sector does
not only make profits for itself but contribute towards eco-
nomic growth and therefore towards the betterment of all,
including themselves. The private sector which welcomed the
concept of Malaysia Incorporated must not only expect better
service from the Government but must also contribute towards
its realisation. They must make it easier for the Govern-
ment to serve them by understanding the regulatory role of
government and its concern for social and economic justice
for all.
9. Let us all be perfectly clear. By no means can it be
argued that all collaboration between the public and private
sectors is justifiable or necessary. There is cooperation
that is productive; and there is collaboration that is un-
productive. Collaboration that results in negative social
consequences, in frustrating the achievement of national
values and aspirations, must be fought against.
10. In many areas there must be more than an arms-length
relationship. On many issues there must be productive regu-
lation. What is good for the business sector may not always
be good for the people as a whole. But in many areas we do
need to work closer. This Council is one of the mechanisms
intended to contribute further to this relationship.
11. No doubt many of you are already on a host of councils
but the Government regards the establishment of this Council
as an important step to bring the public and private sectors
together at the highest level to discuss issues of mutual
interest to the nation. It is a small Council -- consisting
of ten Ministers, eight leaders from the public service and
forty-four leaders from the private sector. It is small be-
cause this is essential in order that we can discuss in an
atmosphere of candour and intimacy. Your membership is a re-
sponsibility to this country and to the people.
12. This Council shall have four primary objectives:
First, to facilitate a free flow of information and
ideas between the public and private sectors;
Second, to address problems pertaining to industrial
and commercial development and to remove impediments to
economic growth;
Third, to create better understanding and to enhance
the relationship between the public and private sec-
tors, and
Fourth, to identify and promote areas of cooperation
and collaboration between the public and private sec-
tors.
13. In order to fulfill these objectives, the terms of ref-
erence of the Council will be as follows:
First, to examine domestic and international business
and economic developments central to Malaysia's
aspirations;
Second, to discuss current and emerging issues and
problems;
Third, to examine and provide practical options and
strategies;
Fourth, to provide feedback on policy issues and devel-
opments with regard to industrialisation;
Fifth, to remove misunderstandings and barriers to pro-
ductive cooperation between the public and private sec-
tors, and
Sixth, to generate consensus on national economic di-
rections and strategies.
14. As a Council member, I shall speak frankly. As Council
members, I expect you to speak frankly too. There can be no
in-depth examination or discussion if there is not this com-
mitment to candour. We cannot remove misunderstanding and
roadblocks to productive cooperation if we fail to communi-
cate clearly. If practical options and strategies are to
come forth there must be a free and frank exchange of infor-
mation and ideas. I hope every Council member will speak
and listen intently, with an open heart and an open mind.
15. It is important that you give priority to meetings of
the Council. In order to ensure the necessary administra-
tive back-up the Government has set up a Centre for Economic
Research and Services to be located at ISIS Malaysia, with
adequate staffing. This centre will be responsible for re-
search, secretarial, organisational and administrative ser-
vices for the Malaysian Business Council. The Government
has allocated an annual sum for the operational costs of the
Malaysian Business Council Centre. There is no compulsion
on the private sector as a whole to make financial contrib-
utions to the Council and its work. But provision has been
made for all private sector donations to the Council to be
tax exempted.
Ladies and gentlemen,
16. At this juncture I think it is appropriate if I do a
quick review of the current economic scene at home and
worldwide. Since the recession years of 85-86 we have re-
covered strongly to achieve record rates of growth. We have
become highly industrialised and we now export more manufac-
tured goods than primary commodities. Where before growth
was based on expansionary public expenditure, now most of
the economic growth is due to private sector activities.
17. Our growth is still largely based on exports and export
related activities. Our domestic market is still too small
to become an engine of growth. Per capita income is one-
fifth of that of developed countries. Accordingly what hap-
pens to the world economy and to free trade is crucial for
us.
18. Despite the Gulf war, Malaysia as a net oil exporter is
able to balance somewhat the effect on oil supply and oil
prices. But we are not totally insulated. Already we are
feeling the effects of reduced air travel, diversion of
ships for war purposes, increase in transportation and in-
surance costs, reduced economic growth and possible re-
cession among our principal trading partners. Our exports
to the warring states in the Gulf have been reduced due to
war risks, logistical problems and inaccessability. The
predicted rise in oil prices has not materialised. Indeed
the prospects are for a glut both during and after the war.
19. Clearly Malaysia is not going to achieve the growth
rates of the three previous years, if we sit back and do
nothing. The Government has done a comprehensive study of
the effects and possible effects of the Gulf War on us. If
we are to ensure minimum harm to our economy due to the war,
we must make adjustments and we must act. We must be pre-
pared to move away from the beaten path. We must be pre-
pared to take risks, reasonable risks.
20. The Government is ready to make these adjustments. It
is ready to listen, accommodate and support the private sec-
tor. I hope that this Council will be able play a leading
role in the difficult times ahead. God Willing, together we
can overcome.
21. The success of this Council will depend on the sense of
commitment and responsibility of the Council members. I
would like to thank all Council members who have consented
to serve on the Council. Through your wisdom and experi-
ence, and the contributions of other sectors of our society,
I am confident we can work together to formulate clear na-
tional directions and goals. I look forward to working with
you in the days ahead.
22. It gives me great pleasure to formally launch the
Malaysian Business Council.
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