Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : CAMBODIA
Tarikh/Date : 15/04/94
Tajuk/Title : THE JOINT BUSINESSMEN
MEETINGIN CAMBODIA
Distinguished Guests;
Ladies and Gentlemen,
I am pleased to be here today to have the opportunity
to address this distinguished gathering of Cambodian
business and industry leaders. I commend the organisers for
the initiative to hold this function in order to bring
together like-minded business leaders of our two countries
to discuss issues of common interest so as to strengthen
bilateral cooperation.
2. Currently, Malaysian companies have made investments in
Cambodia in such sectors as banking, newspaper publishing,
hotel, telecommunication, restaurant, freight forwarding,
shipping, beverage production and petroleum distribution.
The total amount of investment made is estimated at US$40
million. Despite this, the quantum of our bilateral trade
is still small, amounting to about US$12 million in 1993.
3. Nevertheless, I am confident that the potential to
further widen the scope of business cooperation exists.
Many positivefactors which c an enhance the development of
business activities between our two countries are in place.
They include:-
- Measures undertaken in Cambodia to liberalise the
economy;
- The geographical proximity of our two countries;
- Cambodia's abundant natural and mineral resources;
- Favourable policies of your Government to allow
foreign companies to participate in the economic
development effort of the country; and
- The diversity of products of both countries to
expand bilateral trade.
Ladies and Gentlemen,
4. The current modest level of economic cooperation is
perhaps due to the narrow range of products currently being
traded and the lack of contacts and information on market
opportunities. But we know that there are immense
opportunities for cooperation by the private sector of both
countries -- in trade, investments, services and other
sectors of the economy.
5. It is in this context that I have brought with me a
trade and investment delegation comprising leading
businessmen and entrepreneurs to establish contacts and
interact with their counterparts here so as to expand the
scope of our bilateral relations.
6. I am certain that arising from these discussions, the
business communities of both countries can identify new
areas of mutual interests for joint cooperation.
7. Malaysia is an important market for imports. In 1993,
total imports amounted to US$45 billion. According to the
GATT 1993 International Trade Report, Malaysia was the 19th
largest import market in the world. Given the rapid pace of
economic growth, liberal import policies and the increasing
affluence of the population, the Malaysian market is
expected to grow in importance for products from foreign
suppliers.
8. Therefore, market prospects for Cambodian products are
good, particularly for agricultural goods, primary
commodities including minerals and intermediate products.
In this regard, I wish to invite your exporters to come to
Malaysia to see for yourselves the vast opportunities
available and to strengthen your contacts with our buyers.
Our business community will no doubt be prepared to give
their full cooperation to Cambodian suppliers looking for
markets for their products.
Ladies and Gentlemen,
9. In return, Malaysia can offer a wide range of
manufactured products at competitive prices. They include
processed food consumer products, building materials, etc.
In 1993, Malaysia exported manufactured products valued at
US$ 34 billion. This accounted for 73 per cent of total
exports. Many of these products have market potential in
Cambodia.
10. In foreign relations, Malaysia accords much importance
to strengthening linkages with the countries of the South.
Indeed, with Malaysia's experience and knowledge in the
management and development of its economy, we should have
some expertise to share with Cambodia in its development
efforts.
11. In addition, Malaysian companies have the experience
and the know-how to participate actively in the development
of the Cambodian mining, timber extraction, plantation
management, downstream processing of agricultural and
mineral and natural resource sectors and in the services
industry such as finance, engineering consultancy,
construction, development of infrastructure and
tourism-related projects. Our companies have a good
performance record with their operations in many South
countries. I am sure these companies can make
positive contributions towards Cambodia's development
efforts through joint ventures with Cambodians.
Ladies and Gentlemen,
12. 1 am pleased to note that several Malaysian companies
are already operating in Cambodia on a joint venture basis.
Such collaborative efforts, albeit at a modest level, is a
step in the right direction to enhance trade and economic
relations between our two countries. I am confident that
Malaysian companies will intensify their participation in
the Cambodian economy as they widen their contacts, have
better understanding of the opportunities and gain more
confidence through their exposure and experience.
13. To facilitate cooperation with Cambodia, the Government
of both countries have concluded an Air Services Agreement
to provide direct air transport between the two countries.
Our two Governments will continue to strengthen the existing
institutional arrangements, where necessary, to give
confidence to the private sector to undertake business on a
sustained basis.
14. Malaysia has an open economy in which foreign trade and
investments assume an important role. Malaysia is therefore
committed to an open and liberal global trading system which
would help to promote international trade. Apart from its
commitment to the multilateral trading system, Malaysia
recognises the importance of regional cooperation to promote
growth and help to reinforce the multilateral trading
system.
15. Malaysia is a member of ASEAN and participates actively
in all its programmes. ASEAN is committed to establishing
the ASEAN Free Trade Area (AFTA), a market of 320 million
people, by the year 2008. The mechanism to achieve AFTA is
the CEPT (Common Effective Preferential Tariff) under which
the tariff level will be reduced progressively to between
zero and five per cent within a fixed timeframe beginning
from January this year.
16. AFTA will be an important mechanism to expand intra-
regional trade and stimulate rapid economic development in
member countries. In the process, new opportunities
will be created for the business community within and
outside the region. In this regard, there are certainly
areas for cooperation between Cambodian and Malaysian
businessmen wishing to take advantage of these
opportunities.
17. The steady high growth rates registered by ASEAN in the
past are also matched by those achieved by many of the
dynamic economies of East Asia. In addition to ASEAN, East
Asia has evolved into a vibrant manufacturing and commercial
area. This has benefitted regional trade and investment
flows, thereby reinforcing further the interdependence of
the East Asian economies.
18. The intensification of cooperation within East Asia
would help to stimulate production, trade and other related
economic activities. Towards this end, ASEAN and the East
Asia Economic Caucus or EAEC are relevant to the Cambodian
economic interests considering that it is a member of
Southeast Asia and developments in the region would have
stimulative effects on its economy. As the economy of
Cambodia develops, I am certain that her linkages with the
economies of ASEAN and East Asia will strengthen and her
contributions to the development of the region will
increase.
19. The visit of my delegation here today is aimed at
enhancing bilateral ties. With the support given by the
government of both countries to this effort, I am confident
that our businessmen will succeed in forging new business
ties that would intensify further current bilateral economic
cooperation.
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