Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : LAOS
Tarikh/Date : 17/04/94
Tajuk/Title : THE JOINT BUSINESSMEN MEETING
IN LAOS
Distinguished Guests;
Ladies and Gentlemen,
I am happy to be here today to have the opportunity to
address this distinguished gathering of Laotian 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 concern and interest so as to further
strengthen bilateral cooperation.
2. Although Malaysian companies have invested in logging,
road construction and hotel renovation, the value of the
investments is not substantial. The value of our bilateral
trade is small. Total trade only amounted to US$1.0 million
in 1993.
3. However, I am confident that there is significant
potential to expand the scope of our cooperation based on
positive factors which can contribute to the development of
a conducive environment for the promotion of business.
4. The current low level of economic cooperation
is attributed, among other things, to the narrow range of
products currently being traded and the lack of contacts and
information concerning the market opportunities. Yet, we
know that immense opportunities exist for business deals for
the private sectors of both countries, especially in trade,
investments, and services.
5. It is with this in mind that I have brought with me a
trade and investment delegation comprising leading Malaysian
businessmen and entrepreneurs to establish contacts and to
interact with their counterparts here.
6. I am certain that arising from these discussions, the
business communities of both countries can identify areas of
mutual interests in diverse economic sectors for joint
investments.
7. Malaysia is an important market for imports. In 1993,
total imports amounted to US$45 billion. According to the
GATT 1993 International Trade Report, Malaysia was the 19th
largest import market in the world. Given the rapid pace of
economic growth, liberal import policies and the increasing
affluence of the population, the Malaysian market is
expected to grow in importance for products from foreign
suppliers.
8. Therefore, market prospects for Laotian products are
good, particularly for agricultural products, primary
commodities and intermediate products. In this regard, I
wish to invite your exporters to come to Malaysia to see for
yourselves the vast opportunities available for your
products and to strengthen contacts with our buyers. Our
business community will be prepared I am sure to give their
full cooperation to Laotian suppliers looking for a market
for their products.
Ladies and Gentlemen,
9. In return, Malaysia can offer a wide range of
manufactured products at competitive prices. These include
processed food, consumer products, building materials, etc.
In 1993, Malaysia exported manufactured goods valued at US$
34 billion. This accounted for 73 per cent of total
exports. Many of these products have market potential in
Laos.
10. In foreign relations, Malaysia accords much importance
to strengthening linkages with the countries of the South.
Malaysia has acquired experience and knowledge in the
management and development of its economy. We should have
some expertise to share with Laos in its efforts towards
economic development.
11. In addition, Malaysian companies have the experience
and the know-how to participate actively in the development
of the Laotian 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 that these companies can make positive
contributions towards the development of Laos.
12. 1 am pleased to note that some Malaysian companies are
already operating in Laos 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 Laotian economy as they widen their contacts, establish
better understanding of the opportunities available and gain
more confidence through their exposure and experience.
Ladies and Gentlemen,
13. To facilitate cooperation with Laos, the Government of
both countries have put in place the necessary framework
agreements for commercial relations. They include:
- Investment Guarantee Agreement,
- Economic, Scientific and Technical Cooperation
Agreement; and
- Air Services Agreement.
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 Laotian
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 Laotian
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 Laos
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 to intensify current bilateral economic cooperation.
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