Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : SHANGRI-LA HOTEL, SHENZHEN, CHINA
Tarikh/Date : 21/06/93
Tajuk/Title : THE JOINT MALAYSIAN AND THE PEOPLE
Mr. Chairman,
Ladies and Gentlemen,
I am pleased to be given this opportunity to address
members of the Shenzhen and the Malaysian business community
and to share some thoughts with you on the prospects for
two-way trade and economic cooperation between the People's
Republic of China (PRC) and Malaysia.
2. Since the implementation of market reforms and 'open
door policy' by the PRC, there have been rapid changes in
the country's economy and these have in turn generated many
opportunities for both local and foreign participation. In
fact, developments in the PRC have proceeded at a fast pace,
creating tremendous opportunities in various sectors of the
economy. These new developments have generated tremendous
interest among foreign business circles. This is clearly
reflected by the large number of Malaysian captains of
in dustry in my delegation who are all keen to see for
themselves the various trade and investment opportunities
that the PRC has to offer.
3. I have no doubt that many of us have been following the
positive economic developments in the PRC these past years.
Nonetheless, I would like to draw your attention to the fact
that the PRC has been having a good run economically over
the last couple of years. In 1992, for instance, the PRC
recorded another year of buoyant growth of 12.8 percent in
real terms. Her manufacturing output increased by 14.4
percent during 1980-1991, while the 1992 manufacturing
growth rate was at 20 percent. With the continuing inflow
of direct foreign investments into the PRC, amounting to
US$58.6 billion in 1992 alone, I am confident that the PRC
will continue to reap the benefits of this accelerated
economic development.
4. I believe the emphasis on the growth of the Chinese
economy has been and will continue to be driven primarily by
private investments particularly direct foreign investment
in the manufacturing sector. Your country's new found
recipe for economic success has been based on free market
principles. The wisdom of this new economic thrust and
discipline will certainly pave the way for greater economic
growth and development in the years ahead. In this, I
believe that the PRC will endeavour to push ahead with
economic reforms and will strive to establish a market
economy open to the outside world.
5. With the vast opportunities and a buoyant economy, I
would therefore urge Malaysian businessmen to tap the vast
potential of the PRC market. The Malaysian Government
encourages reverse investments, and Malaysians can invest in
the PRC where there is a more competitive and cost-efficient
environment. In this regard I am pleased to note that
Malaysian entrepreneurs have in some ways been active and
participated in various projects in the PRC these last few
years. I am exceedingly pleased to note that many business
ventures have been initiated by Malaysian companies in
collaboration with Chinese and other business partners.
Many of these projects are at different levels of
implementation and I am hopeful that many more
joint-ventures with equity participation by Malaysian
businesses will be in the pipeline in the coming months.
Ladies and Gentlemen,
6. I am pleased to note that the Malaysian private sector
has made successful inroads in property and hotel
development, palm oil refining, timber industries,
manufacture of spring mattress, cables, copper alloy,
corrugated cartons, rubber products, animal feeds, food,
tiles and many others.
7. Although these investments are relatively small in the
context of overall direct foreign investment into the PRC,
they are, nevertheless, significant considering that both
our countries have only recently lifted travel restrictions.
However, the number of visits by companies and people has
increased rapidly and, no doubt, this will contribute to
further enhancing economic cooperation between businessmen
of both countries.
8. The Government of Malaysia encourages the Malaysian
private sector to invest selectively overseas and today
Malaysian investments have been successfully located in
Iran, Papua New Guinea, Cambodia, Vietnam, Thailand, the
South Pacific and other countries. Here in the PRC, there
is an abundant supply of well- educated labour at relatively
low costs. There is also the availability of technology in
which the Chinese are eminent in certain fields. On the
other hand, Malaysia has a high level of management skills,
capital funds and an indepth and extensive knowledge of free
market practices. By coming together, Malaysian businessmen
can benefit from the PRC's vast resources, educated
workforce, relatively low cost of production and a huge do-
mestic market. With the convergence and complementation of
resources and expertise between the PRC and Malaysia, I am
confident that businessmen of both countries can establish
mutually beneficial investment projects.
Ladies and Gentlemen,
9. The PRC, too, is now becoming an important exporter and
importer in world merchandise trade. Her exports grew by
eight and a half times in the period 1978-1992, i.e. from
US$10 billion to US$85 billion, contributing 17 percent to
GDP. In 1992, the PRC was the world's 11th largest exporter
while her imports grew from US$ll billion in 1978 to US$80.6
billion last year. The PRC also ranked as the world's 13th
largest importing country. Similarly, Malaysia has also
achieved high growth rates in both exports and imports.
According to the GATT International Trade Report, Malaysia
with a population of 18.5 million, ranked as the 23rd
largest exporting nation and the 22nd largest importing
nation in 1992. If both our countries cooperate and take
advantage of our respective assets, then we can make even
greater impact in the international market.
10. Two-way trade between Malaysia and the PRC has also
increased from RM1,647 million (US$634 million) in 1987 to
RM4,446 million (US$1,710 million) in 1992, with imports
from the PRC surpassing Malaysia's exports to her.
Malaysia's 1992 total exports to the PRC was RM1,961 million
(US$754 million), constituting an insignificant amount of
the PRC's total imports i.e. about 0.94 percent. We would
like to see the expansion of direct bilateral trade between
our two countries instead of through third countries, which
is still very prominent. Trade with third countries in
goods originating from Malaysia cannot be regarded as trade
with Malaysia as such trade already appears in records of
our trade with such countries.
11. This meeting today will indeed contribute and enhance
the bilateral economic and trade cooperation for the mutual
benefit of both our countries. The presence of a large
number of prominent members of the Malaysian business sector
in my delegation augurs well for future PRC-Malaysia trade
and economic cooperation. I am confident that the meetings
and discussions that you will have here today will pave the
way for new businesses to be conducted and result in greater
trade andeconomic cooperation between our two countries.
On this note I wish you every success in your deliberations.
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