Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : ISTANA HOTEL, KUALA LUMPUR
Tarikh/Date : 05/12/93
Tajuk/Title : THE OPENING OF THE PACIFIC RIM
BUSINESS COLLABORATION SYMPOSIUM
At the outset, I wish to thank the organisers of this
first Pacific Rim Business Collaboration Symposium, that is,
the Asian Strategy and Leadership Institute (ASLI), the
International Infotrade Inc. of the United States and Sabit
Sdn Bhd., for inviting me today to officially open this
Symposium.
2. The objective of this symposium is very laudable as it
is meant to promote regional business alliances. It is only
right that the private sector should take the lead as they
stand to gain by it the most. This is especially so
because of the increasing size of Asia's market. Based on
current performances, it is expected to be the world's
fastest growing region in the 21st century. Its dynamism
will be a major force driving the world economy. It is also
a fact that despite poor economic performances elsewhere,
East Asian nations have continued to experience high growth
and it would not be wrong to anticipate that this trend will
continue for many years to come. Indeed, it was not too
long ago when we were told that the Mediterranean was the
ocean of the past; that the Atlantic the ocean of the
present and the Pacific, the ocean of the future. The
future is already here and Asia's share of global GDP is
expected to increase from about 25 percent to almost 33
percent by the 21st Century. Asia's economic growth has
clearly outstripped world economic growth.
3. In the case of Malaysia, we have been able to transform
it from an agricultural, commodity-driven economy into a
diversified manufacturing based and export-led economy.
Today, Malaysia is one of the few countries in the world
that enjoy buoyant economic growth with low inflation.
While it is true that some countries are booming they are
also afflicted with runaway inflation. In Malaysia, prudent
economic and fiscal policies have helped businesses to
prosper and grow rapidly without affecting the low rate of
inflation characteristic of the country. With our
transparent and pragmatic policies, we hope to encourage
greater inflow of foreign investments involving
sophisticated technology, high capital, technical know-how
and marketing expertise. Through this forum, the private
sector hopefully can further enhance its capacity in terms
of tapping the potential markets of the Asian countries
while establishing a symbiotic and mutually beneficial
relationship. Today, Malaysia is modestly proud to be
regarded as a model for economic development. If I may say
so the achievement is even more impressive as we have
managed not only to promote rapid economic development, but
have done so despite being a nation of diverse and
incompatible ethnic and religious mix.
4. Malaysia's economic transformation and East Asia's
success story did not come about by accident. It was also
not sheer luck that has made us what we are today. Our
success story is the product of much hard work, together
with a work ethic that is compatible with industrial peace
and high productivity.
5. Indeed we believe strong, stable governments are a
major pre-requisite for success. Look around you in East
Asia and you will find that there is a strong correlation
between rapid economic growth and strong stable governments.
Strong governments are prepared to take unpopular decisions
in the best interests of the nation. Strong, stable
governments adopt a longer term outlook on macro-planning
and are not just concerned with the next general elections.
Strong governments provide the necessary stability and
predictability so esential to long-term investments.
6. Strong governments do not mean the absence of free,
democratic elections. When people understand the
limitations and the responsibility of citizens, democracy
can be practised without democratic extremism and anarchy.
Democracy is meant to serve the people, not the people to
serve democracy. When the devotion to democracy results in
a stagnant economy, high unemployment and denial of the
right to work and work hard; when democracy protects
fascists and neo-Nazis; when the individual activist takes
precedence over the silent masses then it is time to
question whether we have correctly interpreted democracy.
It is important to remember that fanatical democrats are no
better than religious fanatics. They both cannot see the
wood for the trees.
7. In the West, democracy means many things to different
people. To us in Asia, democracy means our citizens are
entitled to free and fair elections. They can choose the
Governments of their liking. We also believe that once we
have elected our Governments they should be allowed to
govern and to formulate policies and act on them. Our
democracy does not confer complete licence for citizens to
go wild. We need political stability, predictability and
consistency to provide the necessary environment for
progress and economic development. Thus, we have seen the
Singapore story unfolded by Mr Lee Kuan Yew and now
continued by Mr Goh Chok Tong. We see this in Indonesia's
success story with President Suharto, staying at the helm
for almost 30 years.
8. We are socially stable in Malaysia. Although our
people differ in terms of culture, religion and philosophy,
they display tolerance, understanding and respect each
others' way of life. Malaysians generally believe in
compromise. We do not compromise out of weakness but rather
out of a common desire to see our nation remain peaceful and
prosperous. The vast majority of Malaysians are moderate
people, tolerant, sensitive to each other's differences and
harbour little ill-will.
9. Malaysia is fortunate to have a resilient private
sector willing to undertake risks and share the tasks of
building economic prosperity. The private sector is the
main engine of growth for the Malaysian economy. Together
with the Government's proactive and sound macro-economic
principles and programmes, the concept of Malaysia
Incorporated and privatisation, we have been able to
accelerate growth, reduce our foreign debts, deregulate and
assist the private sector to expand their role. We have
invested in the future, by allocating vast sums of money to
build infrastructure, as well as provide education and
training suitable for an industrial economy. It is this
commitment towards investing in infrastructure and human
resource development that has given us a strong competitive
edge.
10. Malaysia will continue to maintain its liberal economic
policies and development programmes. Our policies will
remain consistent, predictable and transparent. For us the
challenge of managing success is just as important as
managing problems during a recession. I am confident that
with the positive measures we have taken, we are today
better equipped to cope with any cyclical downturn.
11. However, to enable us to better manage difficult times
if a downturn occurs, we must not fritter away our gains
during boom times. We will continue to increase the
national savings and diversify our economy so that we will
not be over-dependent on any one particular sector. We must
diversify our markets as well as seek new markets for our
products and services. In fact, today 53 percent of
Malaysia's trade is with the nations of East Asia where once
it was almost exclusively with Britain.
12. Rapid growth as is being experienced in Malaysia
usually leads to overheating. High inflation, breakdown in
services, inadequate funds for needed supporting
infrastructure, overstrained bureaucracy and inadequate or
shortage in the supply of trained personnel; all these alone
or together can slow down or even reverse economic growth.
How a Government deals with overheating will determine the
future of the nation and its own fate.
13. The trend today is towards a free market economy.
China, the republics of the former Soviet Union, the
Indo-China states and the ex-Communist countries of Eastern
Europe have all embraced the free market system. Some have
even adopted the democratic system of Government. The mere
adoption of these economic and political systems is no
guarantee of success. If they are, then all the western
democracies with market economies would be eternally
prosperous. But we all know that they are not. In fact the
countries which are doing well now are those with not so
liberal democracy and an economic system in which the
Governments play a significant role. China and Vietnam
which look set to grow economically have approximately this
kind of combination. It would be unfortunate if in their
zeal to proselytise, the victorious democrats inflict
economic and political disaster on the enthusiastic
converts. It is well to warn that democracy and the free
markets are not economic and political cure-alls.
14. Although, East Asia has achieved remarkable success and
has demonstrated strong, resilient growth, the future is
full of uncertainties even for them. Calamities and
disasters are always possible even for those with brilliant
records. Japan is the current example. It is therefore,
all the more crucial and imperative for nations of East Asia
to work together in a more integrated and cohesive manner.
The concept of an East Asia Economic Caucus (EAEC) must be
firmed up further. As I have stated before the EAEC is
Gatt-consistent and is committed to free trade. The EAEC
is a result of and intended for open regionalism. On the
one hand it recognises the need for regional cooperation and
integration and on the other it promotes free trade.
Countries of East Asia must work together. The need to
balance regional groupings elsewhere is obvious. Alone, no
Asian country, however powerful, can match the combined
clout of the groupings which have been formed in Europe and
North America.
15. No one need fear an Asian Grouping. Europeans and
North Americans are much more homogenous than Asians. Even
in East Asia we are not only ethnically different but we are
also divided by culture, language and religion. It is quite
impossible for Asians to think of themselves the way
Europeans think of themselves as being of one race and one
colour. Indeed the European culture and language have
common origins. So the idea of an integrated Asian
Community borders on the ridiculous. Not so an Asian or an
East Asian forum or caucus, designed to discuss common
economic problems and to a limited extent to help pull up
those among the East Asian countries which are lagging
behind. All these can be motivated by enlightened
self-interest. If today South East Asia is one of Japan's
valuable market, it is because Japan invested in these
countries and helped them to develop. The highly successful
economies of East Asia will be helping themselves when they
help the less developed countries in the region to grow and
prosper.
16. The EAEC is therefore a logical follow-up of the
economic interaction in East Asia in the post World War II
years. The EAEC is good for the Governments of East Asia
which by and large are concerned to see that their countries
achieve economic well- being. The EAEC is of course good
for the business community of East Asia as well. What else
do businessmen ask for more than to spread their wings
beyond the borders of their countries.
17. Today the narrow protectionist outlook of Asian
businessmen has all but disappeared. Not only are they keen
to go abroad but they regard business alliances and
collaboration with companies in other countries as good
business strategy. By so doing they can gain access to
markets and also acquire new technology. Indeed there is a
whole lot to be gained through cross-border collaboration.
18. As leader of a country which believes in regional
economic collaboration I welcome this symposium. I am sure
it will result in many alliances and collaborations which
will benefit the region, and indeed the whole world.
19. It is with this hope and expectation that I take
pleasure in declaring this symposium open.
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