Speechs in the year
Tempat/Venue 	: 	ULSAN, KOREA 
Tarikh/Date 	: 	28/12/91 

 Mr. S.I. Choi,
President of Hyundai Heavy Industries;
Y.M. Raja Tan Sri Muhammad Alias Raja Muhammad Ali,
Chairman of MISC;
Honourable guests;
Ladies and Gentlemen.
    I  would  like to thank the Chairman and members of the
Board of MISC for inviting my wife and I to officiate at the
Naming and Delivery Ceremony for Bunga Pelangi,  the  latest
and   largest   addition   to  the  Corporation's  fleet  of
containerships.  I had the  pleasure  of  officiating  at  a
similar ceremony to welcome the maiden call of Bunga Siantan
to Port Kelang in March this year.
2.   The Board of MISC  should  be  congratulated  on  their
brave  decision to embark on a policy of fleet expansion and
enhancement  in  response  to  the call by the Government to
increase  the  tonnage of Malaysia-owned and operated  ships
in order to support Malaysia's  rapidly  growing  industrial
development and the  diversification  of  Malaysia's trading
partners and products.
3.   Many new industrial ventures are currently being set up
in  Malaysia  having  been attracted  by  our  rich  primary
resources,   the  favourable  economic  climate,   political
stability and  the ready availability of trained manpower as
well as good infrastructure facilities.  We expect that more
value-added  manufactured  goods  will be generated by these
industries for export overseas to meet the growing demand.
4.   We  realise   that  it  is  essential  that  industrial
development should  be  matched  by  corresponding growth in
the  transport  sector,  particularly in  shipping  services
which are  essential for the  efficient  transportation  and
delivery of our exports at  economical  rates  so  that  our
exports can remain competitive.
5.   In Malaysia it  is  becoming  more  apparent  that  our
shipping  services have not been growing at as rapid a  pace
as that shown by industrial  development  and widening trade
relations.   Since  we lack  the  necessary  facilities,  we
continue to depend on foreign shipping lines  to  carry  the
bulk of our manufactured products and other commodities  for
6.   Although  this  is  understandable,   especially for  a
developing country like  Malaysia,  in  which  international
shipping is highly competitive and highly capital intensive,
it is nevertheless vital that some measures be introduced to
check  the situation.  Otherwise, it will negate much of the
gain from industrialisation and exportation.
7.   The extensive utilisation of foreign shipping to  carry
our  own domestic products for export is undesirable as this
would exacerbate our growing freight deficit  and  insurance
bill, the so-called invisibles.
8.   In  this  context,  I would like to see more Malaysians
venturing into the field of international  shipping.    They
should  not  be   content   with  operating  always  in  the
relatively   sheltered   domestic   sector  where  they  are
protected from competition from foreign  shipping  lines  by
our cabotage policy.   They  should  treat  participation in
domestic shipping as a  valuable  learning  experience  from
which   they  should  aspire   to  graduate  into  the  more
challenging and competitive arena of international shipping.
9.   For this purpose the small and low capitalised domestic
shipping   companies   should   consider  merging,  or  form
consortia with other shipping companies,  local  or  foreign
for greater efficiency and in order to operate viably.
10.  There is no reason why Malaysians should not succeed in
shipping.  We have a maritime  tradition  and  our  training
facilities are capable  of  producing competent and properly
trained  seamen   who  meet  the   standards  set   by   the
International  Maritime Organisation.   These facilities can
be expanded to cater to the increasing  demand  for  trained
seamen not only in Malaysia but also in the region.
11.  We  also  have shipyards to build and repair ships.  It
is  true  that  currently  our  shipyards  do  not  have the
capacity or expertise to build very  large or  sophisticated
ships.   Many  of  our shipyards  limit  themselves  to  the
construction  of  small   riverine  or   coastal   ships  of
relatively simple design.
12.   However,   I  believe   that   we   can   upgrade  our
ship-building  skills and  capacity.   In this respect,  the
recent acquisition  of  Malaysia  Shipyard  and  Engineering
(MSE),  the largest shipyard in the country, by a consortium
led by MISC is a very significant development.
13.   MISC's  involvement  in  shipbuilding  and repair is a
logical   development  in  its  desire  to   diversify   its
14.  I am confident that under the new management the  fully
privatised  MSE,  which is said to possess one of the finest
repair facilities in the region, can grow and develop into a
major  ship-builder.    It  is  clear  that  shipyards   are
presently  facing  a  shortage  of  capacity and are finding
it  difficult  to  cope   with  increasing  orders  for  the
construction  of  new ships.  MSE can play an important role
in helping to meet  the  growing  demand  for  ship-building
capacity in the region.
15.  In  this  respect  we  can  learn much from established
shipyards such as Hyundai which is recognised as one of  the
largest in the world.
16.  I realise that the task of up-grading and improving the
shipbuilding  and  repair  facilities at MSE, in order to be
able to play a  more  active  role in  meeting  the  growing
demand   worldwide   for   bigger   and  more  sophisticated
ocean-going vessels, is not an easy one.  This is especially
so as Malaysian  shipyards presently  play a very small role
in shipbuilding.    During the second quarter  of  this year
Malaysian  shipyards  took up only 0.06% of the total  world
order book for  new  ships.   However,  with  determination,
I am  confident  that  this  can  be  done.  This could well
develop into another field of activity for young  Malaysians
to develop skills which are in great demand world-wide.
17.  Today's  ceremony  may be seen as another concrete step
in promoting closer commercial  ties  between  Malaysia  and
Korea.  I am aware that a variety of sound business ventures
have  blossomed to the benefit of our two countries over the
years.  It is encouraging to note  that  Malaysia  has  been
listed  as  the most popular investment centre in the region
by the South Korean Association of Marketing Industry.
18.  Just as the Korean Government has implemented a  series
of  vision-oriented development plans to enable it to become
the progressive and prosperous State that it is today, we in
Malaysia also have a vision.   We are determined to become a
fully industrialised nation, as Korea is today, by the  year
2020.    In  this direction, the strategies mentioned in our
Second Outline Perspective Plan call for  broad  development
plans  to  be implemented over the next decade.  These plans
can succeed because they are founded upon past  achievements
and   present  capacities   with  the  principal  thrust  on
promoting  a more  balanced,   broad-based,   resilient  and
internationally competitive economy.
19.  Our  Sixth Malaysia Plan, which outlines strategies for
development and growth over the next five years, is designed
to  promote   the  greatest  amount  of  private  investment
possible.  The public sector will support the infrastructure
needs  of  the  expanding  economy  as  well  as   meet  the
all-important   distributional   objectives  of  the  Second
Outline Perspective Plan.
20.  The Sixth Malaysia Plan has  a  target  Gross  Domestic
Product  (GDP)  growth adjusted for inflation of 7.5 percent
from  1991 to 1994.   Real  private  investment is  expected
to grow  by 8.6 percent  compared to  public investment of 3
percent.  By 1992  private investment is  expected  to  make
up 23.1  percent.   The Sixth Malaysia Plan assures  foreign
investors,  and that includes our friends from  Korea,  that
the Government  will continue the existing liberal policy on
equity requirements  for  foreigners  in  the  manufacturing
and tourism sectors.
Ladies and Gentlemen,
21.  The  successful  completion  of  this impressive 59,697
tons containership, Bunga Pelangi, is a  fine  testimony  to
the  skills  and  expertise  of Hyundai Heavy Industries.  I
therefore extend my heartiest compliments to the shipyard on
their skill and capabilities.
22.  I would like to congratulate MISC on  the  addition  of
this  modern containership to the Corporation's fleet.  With
the delivery of Bunga Pelangi the number of ships in  MISC's
fleet  has,  I understand, increased to 51.  I hope that the
Corporation   will   continue   its  policy  of  judiciously
expanding  its  fleet to help meet the growing demand of our
rapidly developing export and import business.
23.  I am confident that MISC will continue to play its role
as the  national  shipping  line  in  striving  to  be  more
innovative   and   therefore   help   meet   the  aims   and
aspirations of Malaysia.
24.  I thank the Board of MISC for  according  my  wife  the
honour of naming Bunga Pelangi.
25.  I  wish  Bunga  Pelangi  and all who sail in her a safe