Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	DHAKA, BANGLADESH 
Tarikh/Date 	: 	13/02/93 
Tajuk/Title  	: 	THE LUNCHEON MEETING WITH THE 
			FEDERATION OF BANGLADESH CHAMBERS 
			OF COMMERCE AND INDUSTRY 




 President of the Federation of
     Bangladesh Chambers of Commerce and Industry;
Distinguished Guests;
Ladies and Gentlemen,
    I  would like to thank you for inviting me to meet with
the distinguished members of the  Federation  of  Bangladesh
Chambers of Commerce and Industry and to share some thoughts
on the opportunities and how best to strengthen economic and
commercial  relations  between  Bangladesh and Malaysia.   I
have with me here today a number of prominent members of the
Malaysian private sector, some of whom already have business
ties with Bangladesh.  They are all very interested in  fur-
ther strengthening bilateral commercial ties between our two
countries.
2.   Bangladesh  and  Malaysia have always enjoyed close and
cordial links.  This can be attributed to our association in
the Commonwealth and the common stands we share in the vari-
ous fora of the United Nations.  The long history of  people
to people relationships has also contributed to these links.
On  the  trade  and economic front, our two governments have
consciously and systematically laid down a strong  framework
for  cooperation  such  as  those  embodied in our Bilateral
Trade Agreement and the formation  of  the  Bilateral  Joint
Commission.
3.   In  spite  of  this, the value of trade between our two
countries is still small and trade is confined to only a few
products.  For example, total two-way trade in 1991 amounted
to US$56.8 million and for the first  nine  months  of  last
year  was  valued  at  US$51.0 million.   Over the last five
years  Bangladesh  accounted  for  around  0.1  percent   of
Malaysia's  total  trade whilst Malaysia accounted for about
0.5 percent of total trade of Bangladesh.
Ladies and Gentlemen,
4.   It is clear that our two countries are  very  much  de-
pendent  on  the North both in terms of markets for our pro-
ducts and in terms of sources of our imports.  Although  our
dependence  on  the North will continue, we should not fore-
close prospects and opportunities to strengthen economic and
commercial ties with countries of the South.   This  becomes
all the more imperative given the current uncertainty of the
conclusion  of the Uruguay Round of multilateral trade nego-
tiations, the formation of NAFTA and  the  consolidation  of
the  single  European market.  While we must continue to at-
tach importance to a successful conclusion  of  the  Uruguay
Round,  we  must  continue to pursue efforts at diversifying
our markets.  The South can offer us much opportunity.
5.   I am happy to note that Bangladesh has made significant
progress towards tariff rationalisation  and  reduction,  as
well  as  towards greater transparency and simplicity in im-
port procedures.  That Bangladesh has embarked on an  indus-
trial  policy  that encourages greater foreign participation
and introduced a series of privatisation,  deregulation  and
liberalisation  measures since the last two years, is indeed
commendable.  Malaysia's own experience in these  areas  has
resulted  in  greater trade and investment flows, leading to
greater technological development as well  as  higher  effi-
ciency  and  productivity levels.  In effect, liberalisation
measures undertaken by developing countries will bring about
the emergence of growing markets in the South.
6.   It is also evident that the countries of the South have
made efforts unilaterally and collectively to enhance  trade
amongst  themselves.  The network of Bilaterial Trade Agree-
ments, Investment Guarantee Agreements and Bilateral Payment
Arrangements are evidences of such efforts.   Projects  that
have  been launched by the G-15 include the South Investment
and Trade Technology Data Exchange Centre (SITTDEC) and  the
strengthening of the generalised system of trade preferences
among  developing  countries (GSTP) can complement bilateral
efforts towards increasing trade, investment and  technology
flows  in  the South.  At the regional and sub-regional lev-
els, our experience in economic  and  trade  liberalisation,
initially on a preferential basis and confined to members of
respective groupings, will bring about higher efficiency and
competitiveness  which  will  spur liberalisation on a most-
favoured nation basis.
7.   In Malaysia, we have embarked on a serious drive to en-
hance economic and commercial links  with  developing  coun-
tries  in  our  effort  to enhance trading within the South.
The Malaysian private sector has kept pace with  this  drive
and has established contacts and networks in many developing
countries, resulting in greater two-way flows of trade.  Al-
though  we are still dependent on the in-flow of foreign di-
rect investment, the  Malaysian  government  now  encourages
Malaysian businessmen to venture out and invest overseas.  I
am confident that the current level of joint-venture tie-ups
between  our  two countries will continue to increase, given
the pull factor derived from the liberal  industrial  policy
embarked  upon  by  Bangladesh,  and the push factor derived
from Malaysia's policy on reverse investment.
8.   It is therefore pertinent and timely for you who repre-
sent the private sectors of Bangladesh and Malaysia to  con-
tinuously take stock of such policy changes with the view to
intensifying joint-venture efforts and commercial links.  At
the level of chamber to chamber cooperation, you both have a
convenient  vehicle  namely, the Memorandum of Understanding
concluded between the two Chambers of Commerce and Industry.
The degree of success in our bilateral efforts to bring  our
two  countries  closer  in the economic and commercial field
depends on how serious and committed the private  sector  of
our two countries are in strengthening these links.
Ladies and Gentlemen,
9.   Our  own  experience  in  development  have proven that
Malaysian entrepreneurs have the capacity  to  develop  some
expertise  in certain fields.  Some of the Malaysian private
sector personalities who have come with me here  today  have
developed  expertise in sectors such as mining, plantations,
construction, tourism development, processing  and  manufac-
turing  of  resource-based  products.    We  are  aware that
Bangladesh entrepreneurs have also developed  expertise  and
capabilities  in  various  fields.   I am confident that the
meetings and discussions that you will have today  will  re-
veal  complementarities  that  can be translated into viable
commercial projects.