Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : CHINA WORLD HOTEL, BEIJING
Tarikh/Date : 15/06/93
Tajuk/Title : THE JOINT MALAYSIAN AND THE PEOPLE
Mr. Chairman,
Ladies and Gentlemen,
I am happy to be given this opportunity to address
members of the Beijing and the Malaysian business
communities and to witness the signing of the various
Memoranda of Understanding (MOUs) between Malaysian and
Chinese companies.
2. This meeting here today is yet another step forward
towards bringing our businessmen closer, both in terms of
understanding our two countries better as well as jointly
developing the business opportunities available. It
reflects also the seriousness on the part of our two
countries to step up efforts to enhance further bilateral
trade and economic relations.
3. Malaysia and the People's Republic of China (PRC) have
always enjoyed excellent bilateral trade and economic
cooperation. This growing relationship has continued to
gather pace and momentum especially since the PRC began her
economic reforms some 15 years ago. The farsightedness of
these reforms is certainly now beginning to bear fruit and
today the PRC has been transformed rapidly from a command
economy to a market economy. PRC's open door policy has
also benefited the country substantially within a short span
of time and, today, double digit growth rates, as was seen
in 1992 at 12.8 percent, are a matter of fact. Added to
this, PRC's manufacturing output has increased by 14.4
percent during 1980-1991 and in 1992 enjoyed a 20 percent
growth.
4. These impressive economic achievements are now the
subject of much envy and have aroused much comment on the
future of the PRC's role in the world's trade. Two foreign
magazines have predicted that the PRC will become an
economic superpower. A third world publication has described
the PRC's resurgence as the entry of the Dragon. I would
like to think that the PRC's achievements are the result of
a farsighted policy as well as the industry of the Chinese
people. I would fervently hope that the good work put in
over these last few years will continue to be pursued for
the betterment of the PRC and that the momentum of the
economic development of the country will be sustained or
even enhanced.
5. However, no nation, aspiring to be a strong
international economic entity, can run from the problems
that the international trading environment presents. Like
yourselves, we have found the international trading
environment to be full of pitfalls and uncertainties. The
unfair terms of trade and the preconditions for market
access imposed upon us by the West defy understanding for
they run counter to the very principles of free trade which
they preach. Developed countries such as the United States
have more often than not found it expedient to attach
conditions to trade such as linking the Most Favoured Nation
(MFN) status for the PRC to non-trade issues.
6. Again, like yourselves, we in Malaysia have always
maintained that trade issues should not be tied-up with non
trade-related issues such as their interpretations of
workers' rights, tropical forest management, etc. While we
are often subjected to scrutiny, no one seems to be
watching them. Worse still no one is able to take any
action when they blatantly break their own free trade codes.
That is why Malaysia proposed that East Asia should strive
to have a united and strong voice in international trade
negotiations and in matters that affect our economic
well-being. In this, I hope that the PRC would assume an
active role and be part of that united and strong voice.
Ladies and Gentlemen,
7. The PRC can assume an important role in realising the
proposed East Asia Economic Caucus (EAEC). An EAEC with the
active support of the PRC will have a better chance of
dispelling the unwarranted fears of some countries as
regard the motives behind this regional initiative.
Besides, an EAEC will certainly provide an excellent forum
for consultations amongst East Asian countries. The PRC,
beyond doubt, will rank as a very important player in the
EAEC, given her desire to be a part of what is happening in
East Asia; to share in the fortunes and ills encountered by
East Asia; and to help in providing direction and a sense of
purpose for the betterment of the political and economic
well-being of East Asia as a whole.
8. East Asia is at an early phase of a dramatic
transformation. Within the next few decades, it is likely
that there will be a belt of modern industrialised nations
with high standards of living, stretching from Korea, Japan,
the PRC, Vietnam and down into the ASEAN region. It will be
the region with the strongest economic weight in the world
and the biggest market.
9. The PRC lies at the very hub of East Asia which is
generally acknowledged as the fastest growing region in the
world. With the continuing participation and interest shown
by foreign investors, the pace of development in the PRC
has, of late been phenomenal. I have no doubt that your
economy will continue to be buoyant and, in the process,
contribute to the economic well-being of the region as
a whole.
10. In this regard, I am pleased to note that to date more
than thirty-seven Malaysian companies have invested in the
PRC since the implementation of the `Open Door Policy' and
modernisation programmes to attract foreign investments. I
am also aware that many more Malaysian companies are now
negotiating with Chinese joint-venture partners to
participate and invest in various projects. I am confident
that these overtures will result in some business ventures
for the mutual benefit of our two countries. Another area
that Malaysia can contribute is in the area of services for
which we in Malaysia have fairly considerable experience.
Malaysian companies for a start can seek out opportunities
to export their expertise as well as participate in some of
the PRC's rapid infrastructural programmes.
Ladies and Gentlemen,
11. I believe the PRC has been, and will continue to be,
the main attraction for Malaysian companies. Opportunities
still abound in the PRC. While interest is focussed on the
China market, I would like to remind the Chinese businessmen
not to lose sight of the tremendous potential of the ASEAN
region and Malaysia, in particular. Malaysia can also serve
as a pivotal point for gaining access to the ASEAN market.
With the implementation of the Common Effective Preferential
Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA),
intra-ASEAN trade will be increased. A potential market of
340 million people in the six economies of ASEAN is
hopefully in the making. ASEAN, as a dynamic grouping with
a growth rate of 5.5 percent in 1992, is now rapidly
shifting towards industrialisation. Coupled with the
establishment of the AFTA, opportunities for trade expansion
are plentiful.
12. In so far as Malaysia is concerned, interest in the
PRC, both as an investment location and a market for goods
and services, is on the increase. For businessmen, the most
important factors in the decision-making process are the
political stability of the country, predictability and
transparency of rules and regulations pertaining to industry
and trade and, more importantly, a pro-business government.
These factors, coupled with both fiscal and non-fiscal
incentives, will be taken into account by any Malaysian
businessman in his venture overseas. At present, the PRC
will score well on those counts. What is required is
greater interaction, both at the level of government and
the private sector, to identify areas where collaboration
between Malaysia and the PRC will generate greater economic
benefits.
13. I sincerely hope that today's meeting of both Malaysian
and Chinese businessmen will further strengthen the growing
bonds of trade and economic friendship that both our
countries have so successfully nurtured and bring both
Chinese and Malaysian businessmen in closer contact with
each other.
14. Finally, I would like to urge all of you who are
present here to take advantage of the vast opportunities
open to you, and to set as your immediate goal the
successful conclusion of your negotiations. On this note I
wish you every success in your new endeavours.
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