Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : SAO PAULO, BRAZIL
Tarikh/Date : 01/07/91
Tajuk/Title : BRAZILIAN BUSINESSMEN
Distinguished Guests,
Ladies and Gentlemen,
Let me first and foremost take this opportunity to
thank the organisers for inviting me to address this distin-
guished gathering. I am happy to note the growing interest
of Brazilian businessmen in looking for possible business
opportunities in Malaysia.
2. As you know, trade relationship between our two coun-
tries has shown encouraging improvement in recent years.
Brazil represents Malaysia's largest trading partner in
South America. Malaysia's total trade with Brazil amounted
to US$328 million in 1990. This accounts for half of
Malaysia's total trade with South America amounting to
US$661.4 million in the same year. Two-way trade between
Brazil and Malaysia has grown from US$78 million in 1985 to
US$328 million in 1990.
Ladies and Gentlemen,
3. Malaysia has an open economy in which trade assumes an
important role. Total exports amounted to US$29.4 billion
in 1990. The export sector contributes about 69 per cent to
the Gross Domestic Product of the country. Malaysia main-
tains trade relationship with all the countries of the
world.
4. In the past, the Malaysian export sector was dominated
by the export of minerals and primary commodities. With
rapid industrialisation the export of manufactured products
today contributes about 60 per cent of exports. Malaysia
also maintains a substantial import trade amounting to
US$29.3 billion in 1990. They are mainly food, machinery
and transport equipment and industrial components for the
manufacturing sector.
5. In view of the importance of international trade to the
economy, Malaysia is committed to an open economic system
and we wish to strengthen further our economic links with
our trading partners, including Brazil.
Ladies and Gentlemen,
6. Malaysia, as a developing country, strongly supports a
more liberal international trading environment. In this re-
gard, our commitment is reflected in our efforts to
liberalise further our import regime consistent with devel-
opment needs. Liberalisation inter-alia would take on the
form of tariff reduction and deregulation in economic activ-
ities.
7. As part of the process to facilitate the successful
conclusion of the Uruguay Round, Malaysia is already ac-
tively involved in cooperation with like-minded groupings
such as the Cairns Group and G 15 which also includes
Brazil. In our effort to strengthen multilateral cooper-
ation, Malaysia is also active in promoting regional cooper-
ation. At the regional level, the Association of South East
Asian Nations (ASEAN), of which Malaysia is a member, has
made much progress in the field of trade and industrial co-
operation.
8. At the East Asian regional level, Malaysia has initi-
ated the formation of the East Asia Economic Group (EAEG).
EAEG has the objective of enhancing economic cooperation
among East Asian countries and to pave the way for a more
open multilateral trading system. Apart from this immediate
objective, the EAEG will continue to serve as a consultative
forum within the region to enhance trade and investment.
The EAEG will be GATT consistent and will not be a trading
bloc. In this regard, the EAEG will not only be beneficial
to the countries in the region but also to countries outside
the region, through the potential trade creating effects of
the Group.
9. In relation to regional cooperation, we note that South
America has also intensified its efforts in enhancing coop-
eration by setting the time frame for the operation of the
Andean Pact and the MERCOSUR. We view these regional coop-
eration programmes positively as they seek to enhance trade
and economic cooperation along accepted multilateral trade
principles embodied in the GATT. Apart from these develop-
ments in regional cooperation, there are also other develop-
ments taking place in the developed world such as the
formation of the Single European Market and the North Ameri-
can Free Trade Agreement (NAFTA).
Ladies and gentlemen,
10. In this interdependent world, developing countries such
as ours are dependent in many ways on the developed world
for trade and investment. The developed countries, however,
have their own regional groupings and, at the same time,
their own economic problems which do worry us. We hope that
they will set a good example for the developing countries by
structuring their regional grouping and by finding solutions
to their problems consistent with the free trade principle.
11. While the developed world is important to the develop-
ing countries as a market for their products, we should not
forget the tremendous potential benefits that could be de-
rived through greater South-South cooperation. Therefore in
our quest for economic development, cooperation among the
developing countries should merit priority attention also.
Vast potential and opportunities for the furtherance of eco-
nomic and trade gains exist in the developing world.
Ladies and Gentlemen,
12. The visit of the Malaysian delegation to Brazil is to
enable Malaysian businessmen and entrepreneurs to meet and
hold discussions with their Brazilian counterparts on busi-
ness and joint venture opportunities as well as to identify
and pursue common areas of interest. I am confident that we
can succeed in this effort in view of the common goals that
we have.
13. Brazil is the largest economy in the region. Its econ-
omy is rapidly growing involving a wide range of activities
in the production and exports of minerals, natural re-
sources, agricultural development as well as manufacturing.
In many ways, our economies complement each other and there
are many areas for cooperation. There is certainly immense
potential for strengtening of economic relations. In this
respect, Malaysia looks forward with confidence to increase
trade with Brazil, both imports and exports.
14. Another potential area for economic cooperation between
our two countries which can be explored further is invest-
ment. Malaysia has a liberal and attractive programme to
attract foreign direct investments, both in terms of capital
and technology. The rapid industrial growth achieved in re-
cent years is very much due to our open policy of getting
foreign involvement in our economy. Brazil has a large and
sophisticated industrial base backed by domestic technology
and therefore Brazilian industrialists are well placed to
look at investment opportunities in Malaysia to set up manu-
facturing base to cater for the national and regional mar-
kets. Malaysia is located in the heart of the fast growing
Asia Pacific region and Malaysia offers an attractive lo-
cation for Brazil to expand its economic relations with the
region.
15. Malaysia also pursues an active policy of
privatisation. In this privatisation programme, partic-
ipation by foreign investors is also welcome by providing
the capital and technology in the privatised projects.
16. Our achievements made in the plantation and mining sec-
tors and in recent years in the development of the manufac-
turing sector has enabled Malaysia to develop expertise in
manufacturing, plantation management, mineral exploration
and extraction, construction and engineering consultancy.
We are ready to cooperate with Brazilian businessmen and in-
dustrialists as we have done with many other countries.
17. I am heartened by the tremendous potentials for the
strengthening of bilateral cooperation over a broad range of
economic activities. While Government can provide the envi-
ronment and conditions conducive to facilitate such a devel-
opment, it is the role of the private sectors of both
countries to get the business moving. In this regard, I am
confident that there will be concrete discussions on busi-
ness opportunities among the business leaders of both coun-
tries and follow-up action will be taken to translate the
business potentials into actual business transactions.
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