Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	NEW YORK 
Tarikh/Date 	: 	29/09/93 
Tajuk/Title  	: 	THE CREDIT LYONNAIS/STOCK 
			EXCHANGE PRESENTATION 



 Distinguished Guests;
Ladies and Gentlemen,
    I  would  like  to  thank  Credit  Lyonnais  Securities
(Malaysia)  Sdn.  Bhd.,  the organiser of this function, for
inviting  me  to  this  gathering  and  to  officiate   this
'roadshow'  which  basically  attempts  to  promote a better
understanding of the stock market in Kuala Lumpur.    It  is
indeed  a  pleasure  for  me  to  be among fund managers and
potential investors here in New York.
2.   As you may have noticed, the concentration of  interest
among  investors today is in the Asia-Pacific region, and it
is not without justification.  Economic performance in  Asia
is  expected  to  remain  vibrant  in 1993 and 1994, largely
driven by the major economies in the Pacific Basin.   Asia's
growth will be maintained at 6.7 percent and 6.6 percent for
1993 and 1994 respectively.
3.   While the world's economy, on the whole is estimated by
the  International  Monetary  Fund  (IMF)  to grow by two to
three percent in  1994,  the  industrialised  countries  are
expected to grow at 1.7 percent for 1993.  The United States
is  expected  to grow by 2.2 percent in 1993 and 3.4 percent
in 1994.  Output for Japan is anticipated to increase by 3.5
percent in 1994, and a recovery is not seen in the  European
Community countries until 1994.  The OECD semi-annual report
expects  the EC countries to contract by 0.4 percent in 1993
with a small rebound of 1.8 percent in 1994.  The IMF, which
is slightly more optimistic, forecasts a growth rate of  0.1
percent in 1993 and 2.2 percent in 1994.  That is the global
scenario  in  terms  of economic growth and prospects in the
coming years.
Ladies and gentlemen,
4.     For Malaysia,  however,  the  year  1993  is  set  to
represent  the  seventh  consecutive year of sustained rapid
growth.   Since the recovery  in  real  GDP  growth  to  5.4
percent  in  1987, the economy has enjoyed an average growth
of 8.5 percent between 1988 to 1993.
5.   Growth in 1993-1994 is expected to be maintained  at  a
creditable  rate  of  around eight percent, in line with the
expectations for some recovery in the pressures arising from
the booming economy since 1987.  There are indications  that
price  stability  will  be  maintained over the medium term.
Still, growth constraints will  remain  the  biggest  threat
that could adversely affect growth potentials.
6.      Latest  indicators showed that the Malaysian economy
strengthened significantly in the second  quarter  of  1993.
Growth  in  real  GDP terms accelerated to an annual rate of
10.4 percent, compared with 7.6 percent in the first quarter
and 9.6 percent in the corresponding quarter of 1992.
7.     The  stronger-than-expected  growth  for  the  second
quarter  could  be  attributed  to a revival in agricultural
production, as well as a surge in the manufacturing  sector.
At  the  same  time, activity in the construction as well as
services, particularly financial services sector,  has  also
picked up significantly.
8.      On  the  demand  side, various indicators on private
consumption and investment pointed to  some  improvement  in
private sector demand during the quarter under review.  Bank
lending  for personal consumption, for example, increased to
9.6 percent during the second  quarter,  compared  with  7.6
percent  in the previous quarter.  At the same time, imports
of consumption goods rose significantly by  7.4  percent  in
April  and  May.    It  was  a  negative  0.5 percent in the
previous quarter.
9.    On the investment  front,  although  latest  Malaysian
Industrial Development Authority or MIDA figures showed that
investment  applications  and  approvals  remained moderate,
other private investment indicators suggest promising  signs
of  improvement in investor sentiment.  Bank lending for the
broad property sector grew by 15.4 percent during the second
quarter, compared with 12 percent in the previous quarter.
10.  Malaysia's rate of inflation for  the  first  half-year
was down to 3.9 percent, as against 4.7 percent in 1992.
11.   Growth in 1993 and to a lesser degree in 1994, will be
dependent  on  the  external  sector.    Our  macro-economic
policies   will   continue   to   be   geared   towards  the
industrialisation and modernisation of the economy, and  the
effective    implementation   of   a   market-oriented   and
outward-looking economic system.
12.  Although growth constraints will  continue  to  pose  a
challenge  to  Malaysia's  policy-making in the years ahead,
indications are that the economy is heading for a period  of
consolidation and continued growth.
13.    Conscious of the need to counter inflationary trends,
which usually accompany high  growth  rates,  the  Malaysian
Government  has  set  out  to limit the rate of inflation to
acceptable levels.   Various measures have  been  taken  and
there  appears  to  be  tangible results.   Although in 1992
inflation rose from four percent to 4.7 percent, it has  now
come  down  to  3.9  percent.   As you can appreciate, price
stability will not only help costing but  will  also  reduce
uncertainties  in the market.  I believe Malaysian companies
are benefiting from it.
Ladies and gentlemen,
14.  The breakdown of the Eastern bloc has resulted  in  the
retreat  of command economies.  Everywhere market economy is
being espoused.   In Asia we see  Communist  countries  like
Vietnam  and  China  switching  to  the  market  economy and
opening up for foreign investments.   The  Eastern  European
countries  are  also  attracting foreign capital.   In North
America the formation of NAFTA has made Mexico  particularly
attractive  to  American investors.   Clearly Malaysia faces
much more competition in  attracting  foreign  capital  than
before the end of the Cold War.
15.    As  a small player in the global arena, Malaysia will
continue to make itself more competitive so as to be able to
withstand protectionist barriers set up by our competitors.
16.  Along with making competitiveness a  way  of  life  for
Malaysians,   we   now   accept   the   need  for  openness,
liberalisation and free competition.    We  have,  I  think,
adjusted  quite well.  As a result we have been able to make
the switch from being the world's biggest  producer  of  tin
and  rubber  to  being  the world's biggest producer of room
air-conditioners and microchips.   Today 69 percent  of  our
exports  is  made up of manufactured goods.  We are, despite
having a population of only 18  million,  the  16th  biggest
trading nation in the world.
17.    Initially much of Malaysia's growth is due to foreign
investments.  In the manufacturing sector especially,  there
was not much Malaysian participation.
18.             This picture has change quite a lot of late.
More and more large Malaysian companies are making an impact
on the economy and contributing towards growth.   Some  have
gone  into  sophisticated  manufacturing  and  are exporting
their products.
19.  As a result of a well-planned privatisation  programme,
many  new  and  very  big  utility  companies have appeared.
These  privatised  companies  have  been  almost   uniformly
successful   and  profitable.    The  privatisation  of  the
Telecoms Department, for example, has resulted not only in a
very  big  telecommunication  company  emerging   but   very
noticeable   improvement  in  telecommunication  efficiency.
From 800,000 lines  in  the  first  year  of  privatisation,
Malaysia  now has well over 2,000,000 lines.  All the latest
in telecommunication facilities are available.
20.  In addition, there are now a number  of  new  Malaysian
companies participating either in servicing or manufacturing
of telecommunication equipments.
21.      Privatised  companies  now  include  private  power
generation, airports, ports, railways,  aircraft  servicing,
airlines, shipping and a host of others.
22.   Most of these companies are listed on the Kuala Lumpur
Stock Exchange (KLSE).   They, along  with  other  Malaysian
companies,  are  doing rather well.  They are profitable and
are expanding and diversifying rapidly.
23.  As a result we have one of the biggest and most  active
stock  markets in South East Asia.  The volume traded can be
actually bigger than in New York.  The KLSE people  will  be
able to tell you more about their performance.
24.    The scope of industrialisation in Malaysia is not yet
exhausted.  To insulate the country  from  deterioration  in
the world markets, the Government has refocused on growth of
the  domestic  market.   True, the small population does not
present a big enough market to balance possible shrinkage in
the world market.  But as the per  capita  income  is  still
low,  the  room for growth is available.  It would therefore
be possible to reduce some  of  the  dependence  on  foreign
investments  and  trade.    Already  Malaysian companies are
growing in size and in numbers, and their balance sheets are
very attractive.   The  Government  will  continue  to  help
facilitate their growth with judicious support.
25.    The  greatest  assets  of  Malaysia are its political
stability and consistency of Government policies.  These are
commodities most  valued  by  the  business  community.    A
climate  of  uncertainty  is  never good for business.  Even
when conditions are not too favourable,  provided  they  are
consistent,  businessmen  can  always see their way through.
But in Malaysia we are not just consistent but we go out  of
our way to create a favourable climate as well.
26.    If  we  think that Malaysia will continue to grow and
that Malaysian companies will continue to prosper,  I  don't
think we are being too optimistic.  We have good grounds and
past  records  and  we  hope  you  will  come  and share our
optimism and our prosperity.
Ladies and Gentlemen,
27.  I now have pleasure in  officiating  this  roadshow,  a
stock exchange programme aimed at promoting the stock market
in Kuala Lumpur.