Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	DUBLIN 
Tarikh/Date 	: 	23/09/92 
Tajuk/Title  	: 	THE CONFEDERATION OF 
			IRISH INDUSTRIES 



 Mr. President;
Distinguished Guests;
Ladies and Gentlemen,
    It  is indeed a privilege for me to be in Ireland today
to meet and interact  with  members  of  the  Confederation,
which  represents the leading economic sector in Ireland.  I
thank you for this opportunity.  I sincerely hope that  dur-
ing  my  short  stay in Ireland, we could share and exchange
ideas and experiences of common interest, which  would  help
advance our bilateral economic cooperation.
2.   Alone,  neither  Malaysia nor Ireland can make any sig-
nificant impact in determining the future course  and  shape
of  the  international,  political and economic order.   Our
voices are too small to be heard.  Nevertheless we are coun-
tries with a vision of  development  for  our  own  peoples.
Small economies such as ours have to find some way of ensur-
ing that we are not left out of the mainstream of world eco-
nomic activities.  We can only do this if we work together.
3.   Today,  Malaysia is said to be one of the fastest grow-
ing economies.  This apparent success can be  attributed  to
many factors.  What I would like to highlight however is the
model of close cooperation and collaboration we have evolved
with  our  neighbours in the Association of South East Asian
Nations or ASEAN.  ASEAN today has reached  agreement  on  a
Common  Effective  Preferential  Tariff  scheme to be imple-
mented beginning next year,  which  will  eventually  evolve
into  a  Free Trade Area.   This is not a trade bloc.  It is
nothing more than enlarging the domestic markets  of  member
countries  so  as  to  be almost as big as those of the rich
countries.  The markets of ASEAN countries will remain  open
for  we  are all dependent on outside trade.  Groupings such
as these will continue to be formed  especially  as  smaller
countries  feel left out of the mainstream of world economic
development.  But at the same time we have to think  of  the
large trading blocs which are also being formed.
Ladies and Gentlemen,
4.   Malaysia  and  Ireland share a number of common charac-
teristics.  Both our countries have, towards the later  part
of  the  1950's and 1960's, embarked on an industrialisation
drive based on a market-oriented economy.   This had  helped
transform  both  our nations from an agriculture - dependent
economy to one that is industrial market-driven.   A  decade
or  two  ago,  you  all  would have known Malaysia only as a
leading producer and exporter of such primary commodities as
rubber and tin.  Today, Malaysia is recognised as one of the
leading exporters of a number of manufactured items.   I  do
admit that Malaysia's industrial base is still narrow.  Nev-
ertheless,  we are still proud of what we have attained.  We
have been successful in diversifying our economy.  This suc-
cess can be attributed to, among others, the inflow of  for-
eign  direct investment.   Malaysia remains as an attractive
investment centre in Asia.  We will continue to ensure  that
this  investment  climate is maintained so that the momentum
we have generated would help to widen and deepen our  indus-
trial base rapidly.
Ladies and Gentlemen,
5.   At  the  time when our economy was undeveloped we never
had to face the problem  of  market  access.    Our  primary
produce only had to contend with the vagaries of market sup-
ply and demand, a feature of a free market economy which, if
we  subscribe  to,  we  have to live with.  We never thought
that the industrial path we  have  chartered  for  ourselves
will be faced with all sorts of hurdles. Only after success-
fully transforming our economy, were we confronted with such
problems.    As  both Malaysia's and Ireland's economies are
oriented to and dependent on foreign trade, with income from
exports contributing more than half to the GDP, we  share  a
common  interest  in  ensuring  the healthy development of a
liberal international trade regime.
6.   Total trade between Malaysia and  Ireland  expanded  by
about five times from US$18.1 million (M$49 million) in 1987
to  US$87.4  million (M$236 million) in 1991.  However, as a
percentage of total trade this is still too small.  In 1991,
it represented 0.1 per cent of Malaysia's  total  trade  and
0.3 per cent of total Irish trade.
7.   Malaysia's  main  imports  from the Republic of Ireland
are  food  products,   chemicals   and   office   machinery.
Malaysia's  exports  to  the  Republic  of  Ireland comprise
mainly electrical and telecommunication equipment,  textiles
and footwear.
8.   The  economy  of  both  countries is expanding, yet the
level of existing bilateral trade remains low.  To say  that
there  is  a  need for greater efforts to increase bilateral
trade is only to state the obvious.   Opportunities for  en-
hanced  collaboration are certainly abundant.  However, such
opportunities could only  be  exploited  positively  through
constant  interactions between the governments and entrepre-
neurs of both countries.  For this reason, I  have  included
in my delegation, leading businessmen from Malaysia, so that
they   could  establish   contacts  and  identify  areas  of
cooperation with their counterparts in Ireland.  I hope both
the business  communities  will  take   advantage   of  this
opportunity.
Ladies and Gentlemen,
9.   Market-access barriers,  although  finally  erected  by
Governments, are not initiated by them.  They have generally
been  instituted at the request of the industries themselves
for their own protection.  But for countries with small  do-
mestic markets, like Malaysia and Ireland, it would be fatal
to  pursue  this course of action, as a retaliatory response
by larger markets would be disastrous.
10.  The world should be our market.   To adopt  an  inward-
looking  trading  policy  is  only  to shackle our hands and
limit our ability to create an economy that is  vibrant  and
resilient.    Therefore, it is imperative that industries in
such countries be prepared and be confident  enough  to  re-
quest  their  Governments to dismantle barriers in favour of
free trade.  It is the only way to contribute towards a more
liberal world trading system.    At  the  same  time  it  is
equally  important  for us to promote the principles of GATT
and do everything to ensure the successful conclusion of the
Uruguay Round of Multilateral Trade Negotiations and reverse
the trend towards protectionism through trading blocs.
11.  The European Community is the largest trading group  in
the  world.    It  accounts  for  about two-fifths of global
trade.  Therefore, European trade policies will have a large
impact on the evolution of a liberal global trading  system.
The  non-European  trading  countries have expressed concern
over the ramifications of a Single Europe and  its  proposal
to  establish  the European Economic Area with the inclusion
of the seven EFTA member countries.  Almost as a reaction to
this development, we have now witnessed the establishment of
NAFTA (North American Free Trade  Agreement).    A  Fortress
Europe will definitely result in a Fortress America.
12.  For smaller countries like ours with high dependence on
foreign trade, it is important that those within and outside
these  groupings  ensure that these groups do not degenerate
into inward-looking economies.  Therefore, Ireland as a mem-
ber of European Community (EC) with a significant vested in-
terest in the growth of an open  and  liberal  international
trading  environment, has an important role to assume in the
EC decision-making process to ensure that the domestic poli-
cies of EC are positive, trade-enhancing and consistent with
the principles of GATT and more importantly send  the  right
signals  to build confidence among the international trading
community.  As the historical leader,  the  EC  carries  the
primary  responsibility  of  setting  the tone for the world
trading environment.
13.  Negotiations on  trade  liberalisation  in  agriculture
have  reached  an impasse.   This has put an obstacle to the
progress of the Uruguay Round.  I am certain  that  Ireland,
being a component member of EC, can make a positive contrib-
ution  with a view to bringing the Uruguay Round to an early
and successful conclusion.  The Uruguay Round is critical to
maintaining an open and free trading environment.
Ladies and Gentlemen,
14.  In the last ten years we have witnessed the  centrally-
planned economies switching to market economies.  As the ba-
sis  of  relationships  between  countries  shifts away from
purely political to a more economic one,  we  will  see  the
liberation of those smaller economies willing to become pro-
ductive  and  competitive.   In this new relationship, power
can only be realised within a framework  of  mutual  respect
and trust but never through force or coercion in any form.
15.  With  the democratic liberation of countries and econo-
mies, what will happen if the Uruguay Round fails and  vari-
ous  trading blocs are formed?  I expect a chain reaction of
protectionism worldwide.  More groups and blocs will form  a
defensive posture.  But we must remember that a fortress not
only  protects but also cuts off the occupants from the out-
side world.  In trying to exact a price  from  the  outside,
those  inside  will  have to pay a price too.  Protectionism
will therefore impoverish everyone.
Ladies and Gentlemen,
16.  There   is   an   alternative   --   that   of    trade
liberalisation.    The  Uruguay Round seeks it and we should
all work hard to realise it.  Regionalism or  the  formation
of  regional  trading  areas  need not become protectionist.
Trading groups can become trade-liberalising  to  enhance  a
region's  competitiveness.  This is our vision for the Asean
Free Trade Area.  It is intended to  reduce  trade  barriers
and  make  ASEAN  a  more competitive trading partner in the
world.   This is the only alternative  that  the  world  can
adopt to safeguard the trading environment.
17.  Economics  cannot  however  be  divorced from politics.
While money has no loyalties, the hand that holds the  money
has loyalties.  Therefore, while we all preach and promote a
freer  trading  environment,  there  is another side of life
that needs equal attention.  Poverty, starvation and  hunger
are  still very real in our modern world.  Let us not become
a world, where in the same city  people  wine  and  dine  in
splendour, there is stark poverty and homelessness.  In many
ways  the modern world has allowed such contradictions.  But
is that what we want?
18.  At  least,  on  behalf  of  all   Malaysians,   I   can
confidently  say  that we have rejected this.  We have opted
for a developed society where we are also a caring and shar-
ing people -- a nation where there is no abject  uncared-for
poverty.  We believe justice should have an equitable face.
19.  But, can we expect that in our New World Order?  Can we
truly dream of a New World Order where every human being has
his  place  under  the sun?   Is this too much to dream?  Is
this too much to ask?  We do not think so.   In Malaysia  we
have  a  vision called "Vision 2020", i.e. we expect to be a
developed country by 2020.    We will work hard  to  achieve
our  vision.   But much depends upon the world community and
the attitudes of the powers that be towards us.  If at times
we speak strongly it is because we feel concerned  over  our
own fate.  If that concern coincides with that of others, it
is  not by design.  It is because we belong to that category
of nations which are the have-nots of this world.
Ladies and Gentlemen,
20.  I am  happy  to  note  that  the  relationship  between
Malaysia and Ireland has always been cordial.  We have had a
long-standing  relationship  in  the  field of education and
training.    Many  Malaysians  have  lived  and  studied  in
Ireland.    I  am sure they have benefited greatly from this
education and training and I see no reason why collaboration
between us should stop there.   With  our  similar  economic
histories,  I am positive that there are many areas in which
our two countries can collaborate for our mutual benefits.
21.  Malaysia  is  currently  embarking  on  a  strategy  to
broaden  and  deepen the industrial base by moving into more
capital-intensive, high technology and  skill-intensive  in-
dustries.   For this we need to upgrade the absorptive capa-
bility of our  work  force.    We  would  thus  welcome  any
assistance  and  cooperation that Ireland can provide in the
field of Human Resource Development in key  technical  areas
that  could  upgrade  the  technical  capability of the work
force.   Many multi-national corporations  that  have  oper-
ations  in  Ireland,  are also operating in Malaysia.  These
commonalities could be capitalised for  mutual  benefits  by
encouraging  Research & Development capability especially in
industrial technology.  Ireland has expertise in such  areas
as  automotive  components  and pharmaceuticals and we could
develop some areas for collaboration here.   Although  Irish
investment in Malaysia is currently negligible and Malaysian
investment  in  Ireland  is  unheard of, it is still not too
late for us to work out strategies and programmes for  coop-
eration in both trade and investment.
22.  I do recognise that Ireland is also promoting more for-
eign  investment.    There could be potentials for Malaysian
companies to invest in Ireland under our Reverse  Investment
Policy  recently introduced.  In this regard perhaps the In-
dustrial Development Authority  of  Ireland  could  come  to
Malaysia  to  look  for Malaysian joint venture partners for
Irish businessmen.
Ladies and Gentlemen,
23.  The Governments of both countries  could  only  provide
the  moral  leadership  to  enable entrepreneurs to practise
their vocation productively and profitably.   In  the  final
analysis  it is the courage and resourcefulness of entrepre-
neurs that could  transform  latent  opportunities  to  real
business  gains.  With this concluding remark, I wish all of
you success in your endeavours.