Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	AT THE LANGKAWI ISLAND RESORT HOTEL 
			LANGKAWI, KEDAH 
Tarikh/Date 	: 	25/08/94 
Tajuk/Title  	: 	THE SIXTEENTH ASEAN MINISTERS OF 
			AGRICULTURE AND FORESTRY 
			MEETING (AMAF) 



     I would like to thank the Ministry of  Agriculture  for
inviting me to officiate  the  16th  Meeting  of  the  ASEAN
Ministers of Agriculture and Forestry in Langkawi today.   I
hope that in the spirit of ASEAN  cooperation  you  will  be
able to discuss candidly the issues before us  and  come  up
with proposals that will mutually benefit us all.

2.   The ASEAN economies today are booming and  experiencing
rapid economic  growth  averaging 6.7  percent  per annum in
1993.  In all these  economies,  the  leading  sectors  have
always been the manufacturing and the services sector.   Yet
a large number of  people  are  still  highly  dependent  on
agriculture   and  forestry  for  their   livelihood.    The
agricultural  sector,  compared  to  the  manufacturing  and
services sector, has been lagging behind in terms of rate of
growth and contribution to the GDP.   As such  efforts  must
be made to  ensure  that  agriculture  continues  to develop
alongside other sectors.

3.  In Malaysia, between 1991 and June 1994,  out of RM 82.8
billion of capital investment that was approved for 20 types
of industry,  agro-based and food-based industries accounted
for about 11 percent or RM8.7  billion.   This included food
manufacturing,   beverages   and   tobacco,  wood  and  wood
products, and paper and rubber products.   Thus, even though
the manufacturing  sector  takes  on  great  importance in a
country's industrialisation,  the  agriculture  component is
not an insignificant component.   Besides, for Malaysia, the
biggest import item and the biggest  cause of  inflation  is
food, especially imported food products.
Ladies and Gentlemen,

4.    The private sector of ASEAN countries can play a major
role to  enhance intra-ASEAN investment in  the  agriculture
and  forestry  industry so as to exploit the complementarity
within ASEAN in terms of factor  endowments,  labour  costs,
technologies,  and skills.  ASEAN private initiatives should
aim  at  strategic  alliances  and  joint  ventures  in  the
production,   processing   and   marketing  of  agricultural
products.    The  thrust  of  cooperative  efforts  in  this
direction  should  result  in   penetration  of  extra-ASEAN
markets.   With the conclusion  of  the  GATT  negotiations,
there    will   be   more   trade   and   competition,   and
competitiveness will be the key to  survival  in  the  world
market  place.   Hence all the comparative advantages of the
ASEAN member countries should be combined in order for ASEAN
to  be  a  low  cost  producer  and  exporter   of   quality
agricultural products.

5.      In  ASEAN  we  have  the Growth Triangle development
strategy involving all ASEAN member  countries,  namely  the
IMT-GT  between Indonesia, Malaysia and Thailand; the SIJORI
between  Singapore,  Malaysia  and  Indonesia  and   BIMP-GT
between Brunei, Indonesia, Malaysia and the Philippines.  In
all  these  projects,  agriculture  offers a great potential
because these are  resource  frontier  regions.    I  would,
therefore,  like  to  urge    the private sectors of all the
ASEAN member countries  to  initiate  projects  which  would
benefit all parties and help expedite the process of opening
up  these  growth centres.   Potential  areas of development
include food production and large-scale  livestock  rearing,
as well as the various tree-crops.

6.      We  in  ASEAN  produce  the same  commodities,  have
the  same climate, the same environment, eat the same staple
food and face the same problems.    In  agriculture,  as  in
other  fields,  we are both competitors and rivals.  We want
to be the best producers  and  to  get  the  maximum  market
access  for our products.  In fact we want to be the best in
all our endeavours because entry into the world market means
we can develop faster and improve the standard of living  of
our people.  This is a logical and rational mode of thinking
and  action  because  the  real world is a harsh one.  But I
believe we can do better if we cooperate rather than compete
ferociously and fiercely.   It is in this  spirit  that  the
ASEAN  Ministers of Agriculture and Forestry (AMAF) can play
an important role.    I  hope  that  the  AMAF  will  be  an
effective forum for the resolving of common problems related
to  agriculture and forestry in the region.  We have no time
to engage in polite and  unproductive  forums  using  scarce
public  funds  that  need  to be used for the benefit of our
peoples.  We have to make a commitment to come up with  more
task-oriented and substantive work programmes.  If we all do
this  sincerely  and  with commitment, then agriculture will
continue to be an important contributor to our growth.

7.   Although environmental issues have dominated the  world
scene  since the UNCED summit held in Rio de Janeiro in 1992
the role of agriculture cannot be ignored.   It  is  obvious
that  expansion  of agricultural land must be at the expense
of forest land.  But we can minimise this by more  intensive
cultivation  of  available  land  and  through  research  on
increasing yield per unit of land.  It is worth noting  that
research  has  made the original rubber tree yield ten times
more latex.  The same is true for oil palm and other  crops.
Still  there  are  many ways of improving quality and yield.
It is up  to  the  agriculturists  to  do  research  and  to
develop.    Funds  expanded on R&D in agriculture is never a
waste.   ASEAN researchers should publish  their  works  and
exchange  information  on  a regular basis.  That way we can
help sustain our environment and in particular our forests.

8.    Growth in population tend to exhaust  marine products.
While fishing should be controlled,  aquaculture  should  be
expanded.  Many ASEAN countries have more than adequate land
for aquaculture.   At the same time research in  aquaculture
should not only make the industry profitable but should help
with the food needs of ASEAN countries, and for exports.

9.    ASEAN remains a major tropical forest  region  in  the
world,  with some 180 million hectares which represent about
60 percent of the ASEAN land area.  ASEAN is also  the  most
important supplier of tropical timber products in the world,
accounting  for  more  than  80 percent of the international
trade in these products valued at more than US$12 billion  a
year.      Forestry  has  played  a  dominant  role  in  the
socio-economic development of the region.

10.   You may recall that when  the  need  to  conserve  the
world's  forests  was first recognised, the focus was almost
exclusively on the tropical forest and its exploitation.   A
full  scale  and emotive campaign was mounted in the West to
ban the use of tropical  hardwoods.    It  would  seem  that
temperate  land timber has no role at all in maintaining the
ecological balance.  The timber tycoons of the  north  could
clear-fell millions of hectare of forest with impunity.

11.    While  we are not denying the role played by tropical
forests in sustaining the ecological balance, we would  like
to  point  out  that  we do no clear felling.  Extraction of
timber is controlled so that  if  you  fly  over  the  ASEAN
countries, you will still see only green below you.

12.   When ASEAN timber companies expand their operations to
the South Seas and other regions they  are  equally  careful
not  to  destroy  the  forests they log.   Unfortunately the
activities of ASEAN loggers to  help  the  economy  of  many
developing  countries have aroused resentment on the part of
some regional powers.  Suddenly money was offered  to  these
developing  countries  to  persuade  them  to stop Malaysian
investors.  We do not know what to call such aid but  it  is
questionable whether ecology has anything to do with it.

13.    While  many  ASEAN  countries  can  afford  to reduce
dependence on the forest  for  their  economic  development,
other countries may not be able to do so.  They have a right
to extract their forest products in order to free themselves
from others.

14.    Finally, I am glad to note that the ASEAN Secretariat
has drafted a Memorandum  of  Understanding  for  the  Joint
ASEAN  Agriculture  and Forestry Product Promotion Scheme in
order to strengthen the collective  bargaining  position  of
ASEAN  and  expand  agriculture and forest products exports.
This MOU is very timely and in fact is long overdue  in  the
quest  for  ASEAN economic cooperation in the face of a more
competitive world economy.

15.  On that note, I have the pleasure to declare  open  the
Sixteenth   ASEAN  Ministers  of  Agriculture  and  Forestry
Meeting.

 
 



 
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