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.
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