Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : BANGKOK, THAILAND
Tarikh/Date : 20/08/93
Tajuk/Title : MEETING WITH THAI
BUSINESS COMMUNITY
Mr Chairman;
Ladies and Gentlemen,
I am honoured to be given this opportunity to address
members of the Thai business community and to share with
you some thoughts on the prospects for greater two-way trade
and economic cooperation between Thailand and Malaysia.
2. Our two nations have had a long history of trade dating
back to olden times. Thailand's southern and Malaysia's
northern states have a long trading relationship and for
centuries trade in spices, rice, gold, silver, tin and other
goods flourished. Today that trade has been taken over an d
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thriving bilateral trade in a far wider range of products
amounting to US$2.46 billion in 1992. In the same year,
Malaysia's exports to Thailand amounted to US$1.48 billion
while our imports from your country was valued at about US$1
billion.
Ladies and Gentlemen,
3. Thailand, Malaysia and the rest of ASEAN lie at the
very hub of the Western Pacific Rim which are now undergoing
tremendous economic changes. The pace and momentum of these
economic changes, will carry the countries in this area into
an era of unprecedented economic prosperity. In addition
the economic reforms taking place in the People's Republic
of China, as well as the reforms and reconstruction process
in Vietnam and other countries in Indochina, are also likely
to bring forth tremendous economic progress in the region.
As a result there will be numerous new business and
investment opp ortunities for all to seize and develop.
4. However, despite the phenomenal success of these
countries we need to be wary of the pressures exerted by the
international economic environment, namely the geopolitical
power play of the developed west and their demands for
preconditions on trade, including linking trade to non-trade
issues, such as human and workers' rights, and the
environment. All these can hamper the progress that
countries in the region are about to make. It is therefore
important for us to be actively involved in deliberations at
the multilateral level to strengthen the rules and
disciplines of free trade. In this respect ASEAN has made
its contributions felt in the Uruguay Round of Multilateral
Trade talks.
5. Nevertheless, while we pursue efforts towards greater
liberalisation of free trade to ensure that markets of the
rich North remain open, countries within the region and
within the South should also open their markets and allow
access for each other's goods. Liberalisation will remove
market inefficiencies and promote greater economic
activities and ultimately bring growth and development to
our economies. It is for this reason that we in the region
should strive for greater economic cooperation by first
liberalising our own economies.
Ladies and Gentlemen,
6. Within the context of these developments, both Thailand
and Malaysia can complement each other in our quest for
greater economic growth and prosperity. We both have strong
and vibrant economies. Our people have a penchant for
hardwork and are endowed with the necesssary skills. Both
our countries enjoy high rates of growth with yours at
double digit growth in recent years and Malaysia at seven to
eight percent per annum. Our two countries have also seen a
vast transform ation of our economic sectors,resulting in
a switch from the production of commodities to the
production and export of manufactured goods.
7. Given the above factors, there are certainly
opportunities for Thai and Malaysian businessmen to come
together to jointly participate in industrial and other
economically feasible ventures for mutual benefit. It is
interesting to note that out of the total number of 61 Thai
investment projects approved in Malaysia since 1980,
involving Thai equity of US$29.5 million and a total capital
investment of US$82 million, about 40 industrial projects
are already operational. Undoubtedly the level of capital
investment by Thai businesses in Malaysia is still low
and can be further increased given the closeness of our two
countries and the possibilities for project complementation.
Apart from complementation ventures in ASEAN, the Northern
Growth Triangle that is being proposed also provides an
opportunity for both the countries as well as our ASEAN
neighbour Indonesia to participate. Thailand for example is
renowned for her agro-based industries, light industrial
consumer products, animal husbandry as well as in other
sectors. In other areas, there are avenues for both Thai and
Malaysian business counterparts to collaborate in a wide
range of activities, such as cross-border manufacturing, raw
materials processing, light engineering and manufacturing,
with ASEAN and the global markets as their targets.
8. Malaysia and Thailand each has a thriving tourism
industry, a buoyant industrial economy and an ongoing
nationwide infrastructural programme to upgrade
communications, roads, bridges and other industrial support
facilities. These provide additional avenues for
cooperation. I would like therefore to extend this open
invitation to the Thai business community to work jointly
with their Malaysian counterparts, some of whom are here
today with me,to explore the synergistic possibilities that
joint economic ventures present.
9. The recent implementation of the Common Effective
Preferential Tariff by ASEAN to create an ASEAN Free Trade
Area by the year 2008 should provide Thai and Malaysian
businessmen the extra impetus to venture into new areas
where we have the competitive edge. The proposed ASEAN Free
Trade A rea will become a reality within a projected
time-frame of 15 years and towards this end I would hope
that all ASEAN member countries would undertake an
accelerated programme of across-the-board tariff cuts to
make the ASEAN region an even more competitive and truly
'Free Market' where numerous opportunities prevail.
10. Our commitment to free trade and to market
liberalisation has always underlined our economic growth and
progress in ASEAN. We must continue to adopt strategies and
approaches that will enhance trade and investment within
ASEAN as well as strengthen inter-regional cooperation. The
consensus that was reached in Singapore on the East Asia
Economic Caucus will enable ASEAN to pursue consultations
with other East Asian economies towards the expansion of
intra-regional economies and the promotion of an open and
free global trading system.
11. As an ongoing exercise, ASEAN and other East Asian
economies can focus on our own contribution towards
substantial and balanced results of the Uruguay Round of
Multi lateral Trade negotiations. We can also embark on an
investment initiative in East Asia taking cognisance of
liberalisation measures undertaken by regional economies, in
addition to benefitting from foreign direct investment from
the rest of the world given the favourable economic
environment of the region. ASEAN's own ASEAN Industrial
Joint Venture (AIJV) programmes should be enhanced to ensure
greater participation of East Asian investors. ASEAN
investors can also strike strategic alliances with others in
the economic activities of regional economies that are
undergoing economic reforms in order to integrate themselves
with the international economic system.
12. The recipe for economic success in ASEAN will be for
member countries to jointly come together to bring down
tariff barriers and to develop their resource-based
industries, as well as to strive for growth on the back of
the current buoyant economic environment.
Ladies and Gentlemen,
13. Let us not allow these opportunities to slip by.
Together Thailand and Malaysia can scale greater economic
heights by taking that great step forward by investing in
joint industrial cooperative projects and other business
propositions for mutual benefit.
14. On this note, I wish you every success in your business
endeavours.
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