Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	BUKIT KIARA EQUESTRIAN & COUNTRY 
			RESORT, KUALA LUMPUR 
Tarikh/Date 	: 	27/11/93 
Tajuk/Title  	: 	THE OFFICIAL SIGNING CEREMONY OF 
			THE MALAYSIAN NATIONAL COMMERCIAL 
			VEHICLE PROJECT 


 
     It is pleasure for me to be here today to  witness  the
signing  ceremony  of  a joint-venture between Hyundai Motor
Company of South Korea and Industri Otomotif  Komersial  (M)
Sdn Bhd (INOKOM).
2.      We  have  looked  East for a long time now and after
numerous trade promotion efforts in Korea by the Government,
a small  number  of  Korean  investors  have  come  to  this
country.    The  bigger  organisations  have come to bid for
contracts and in some instances we have supported them  only
to  see  them  depart  on completion of these projects.  The
involvement of Korean businesses in Malaysia so far has been
small in comparison  to,  say  Japan,  the  United  Kingdom,
Taiwan and so on and even then, it is somewhat tentative.  I
must  say  that  the  bilateral  interaction  in investments
between Korea and Malaysia has been rather disappointing.
3.    This makes today's event  rather  special.    We  will
witness  a  ceremony that will mark the commitment of one of
the largest 'chaebols' in South Korea to invest and  provide
technical  know-how  to  local  Malaysian partners.  This is
testimony to the fact that the investment  climate  in  this
country  is  now  better  understood in Korea.   I hope this
represents the fore-runner to further investments by the big
'chaebols'.
4.    I particularly like to welcome  the  Chairman  of  the
Hyundai  Business Group, Mr Chung Se Yung to our country.  I
am sure he will find Malaysia not only hospitable but also a
good profit centre for investments.
5.   I understand that you and your  brothers,  from  humble
beginnings  of  a  small motor car repair shop in 1947, have
led the Hyundai Group to become the giant conglomerate  that
it  is  today,  with a turnover of US$55 billion in the last
financial period.   I would like  to  point  out  that  your
turnover  is  more  than  half  of Malaysia's total trade in
1992.
6.    We, Malaysians, have  a  strong  and  big  heart,  big
determination,  big  aspirations, pragmatic ideas and highly
sensitive to business needs.  We want to learn from you  and
aspire  one  day to be a progressive industrial society.  We
believe we can achieve this through meaningful  and  sincere
partnership.   Other countries which have done so have found
that the ensuing Malaysian prosperity creates a good  market
for  their exports.  Similarly, Malaysia is now investing in
other developing economies  in  the  hope  that  when  these
countries prosper, two-way trade will follow.
7.      The  days  of screw driver and spot weld assembly of
vehicles, which have been around in this  country  for  more
than  30  years  are almost over.   They were useful for job
creation but they carry a high cost for Malaysian  consumers
and  do  not contribute towards technology upgrading or true
industrialisation.  With almost full employment now we  need
to use our workforce in a more productive way.
8.   We have now enough expertise in this area of elementary
manufacturing.    We  do  not  need  more  of  the same.   I
therefore would like to see this  new  partnership  generate
new  levels  of  technology  as yet unavailable in Malaysia.
Towards this end, I am pleased to note Hyundai's plan to set
up a gear manufacturing facility that will  eventually  lead
to  the  local manufacture of the complete transmission, not
only for the passenger and commercial vehicles industry, but
later for the motorcycle market as well.  This venture  will
be  undertaken  by  Perwaja  and other Malaysian partners in
Gurun.  It represents yet another  downstream  activity  for
our steel industry.
9.      The  Proton  project  has spawned a viable component
industry that is now seeing  volumes  that  make  them  more
competitive  than  ever  before.    With  the  advent of the
Malaysian mini-car  project  and  this  national  commercial
vehicle  project,  the  volume of motor vehicles produced in
this country will be sufficiently big to justify investments
in the more expensive components.  With this,  Malaysia  can
aspire  to  become  a  centre  for component manufacture for
motor vehicles and other motors.
10.  In order for Malaysian and  foreign  industrialists  to
benefit  more  from  this expansion of the motor industry, I
would urge you  to  further  assist  these  small  component
manufacturers in development work and R&D as this represents
the   single  most  dependable  guarantee  for  quality  and
competitiveness over the long haul for your end product.
11.   Malaysia with its  consistent  and  sustained  growth,
recognises  the need to produce its own commercial vehicles.
The demand for these has continued to  increase  year  after
year, and import prices for CKDs for these vehicles continue
to  increase,  bringing in its wake imported inflation.  The
transport industry is one of the sectors the  Government  is
paying  close  attention to in order to check inflation.  So
it is very timely that we commence work to produce  our  own
Malaysian  national  commercial  vehicle  so that we will be
able to offer the  Malaysian  public  a  quality  commercial
vehicle  at  a fair price.  Indeed if the vehicle is of good
quality and competitively priced it should also be exported,
thus adding yet another step  in  making  Malaysia  a  motor
vehicle manufacturing centre.
12.   I would like to congratulate the parties concerned for
putting together this project, and I am  sure  we  all  look
forward to the launching day.
                      
 



 
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