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.
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