Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : ISTANBUL, TURKEY
Tarikh/Date : 29/09/94
Tajuk/Title : THE JOINT BUSINESSMEN MEETING
I am pleased to be given this op portunity to address
distinguished members of the Turkish business and industrial
community. I commend the organisersfor the initiative to
hold this function which has brought together the business
communities of our two countries to discuss and share views
on issues of common interest in order to strengthen trade
and economic relations between Turkey and Malaysia.
2. The meeting here today is opportune and marks an
important step towards closer relationship between Turkey
and Malaysia. Ties between our two countries have always
remained close and cordial. This can be attributed to our
common stand in the various fora such as the United Nations
and the Organisation of Islamic Conference (OIC).
3. Although we have established goo d trade links, there
is still a lot more to learn about each other's business
communities. Our visit here should facilitate greater flow
of trade between our two countries.
4. The volume of rade between Turkey and Malaysia has
progressively
increased from US$100 million in 1989 to US$188 million in
1993. However, bilateral trade is still small accounting
for less than one percent of our external trade. Trade
between our two countries is also confined to a narrow range
of products comprising mainly palm oil, natural rubber and
cocoa from Malaysia and iron and steel ingots and bars,
vegetables, electric power machines and apparatus, cement
and fabrics from Turkey. This situation could be attributed
to the lack of direct contacts between the businessmen of
Turkey and Malaysia as well as limited information
concerning products and market opportunities that exist in
our two countries.
5. Many developing countries and newly emerging economies
over the last couple of years have taken bold steps towards
market liberalisation and deregulation. I am sure that
Turkey too has undertaken liberalisation and deregulation
measures to reinvigorate its economy. Turkey has also taken
steps to privatise its enterprises. Malaysia too has
undertaken similar measures which have resulted in greater
trade and investment flows into the country, helping to
boost technological development as well as improve
efficiency and productivity levels. The liberalisation and
deregulation measures undertaken by developing countries and
newly emerging economies would eventually result in creating
a substantial market in the South, which would be able to
supply a wide range of products ranging from raw materials
to products of high technology.
6. Malaysia has embarked on a concerted drive to enhance
trade, economic and commercial links with other developing
countries and newly emerging economies. The Malaysian
private sector has been supportive of this drive. They have
established contacts and networks in many developing
countries such as China, Cambodia, India, Papua New Guinea,
the Philippines, Sri Lanka, Vietnam, and a host of other
countries which has resulted in greater flow of trade.
Malaysia's exports and imports to and from the South
countries in 1993 amounted to US$17 billion and US$12
billion respectively.
7. In our effort towards a more focussed programme for
the South, the Malaysian Government has implemented a
special programme of collaborating with General Trading
Companies (GTCs) to promote Malaysia's trade with these
countries. For this purpose, the Government has selected
three GTCs namely, Edaran Otomobil Nasional Berhad (EON),
Sime Darby Berhad and Kumpulan Guthrie Berhad. The GTCs
among others would also identify possible competitive
sourcing of raw materials and other inputs required by
Malaysian companies and promote the export of Malaysian
services and investment in the South including in Turkey.
8. On the investment front, Malaysia now encourages its
private sector to venture out and invest overseas. In this
connection, I am confident that the current level of
cooperation between our two countries will continue to
increase as a result of liberal trade and investment
policies adopted by Turkey and Malaysia's reverse investment
policy. It is therefore important that the private sectors
of Turkey and Malaysia regularly review the opportunities
and policy changes with a view to intensifying joint
ventures and commercial links.
9. The Malaysian private sector has considerable
experience and technical know-how in a number of areas such
as manufacturing, agriculture, mining, tourism-related
projects, construction, finance, engineering consultancy and
development of infrastructure. I am sure Turkish
entrepreneurs have also developed expertise and capabilities
in various fields. Hopefully, Malaysian and Turkish
companies could forge some fruitful business links in these
activities.
10. According to the GATT International Trade Report 1993,
Malaysia is now the 19th largest trading nation in the
world. In 1993, Malaysia's total imports amounted to US$45
billion. The rapid pace of economic development, liberal
import policies and the increasing affluence of the people
would continue to make Malaysia an important market for
foreign suppliers including from Turkey. In this regard, I
wish to invite Turkish businessmen to visit Malaysia and see
for themselves the vast trade opportunities available for
their export. Turkish companies could set up their regional
offices in Malaysia and use Malaysia as their base to launch
their products in the ASEAN market. At the same time,
Malaysia too could offer a wide range of manufactured and
intermediate products required by Turkey. Malaysia has a
broad manufacturing base. Manufactured exports in 1993
amounted to US$34 billion representing 73 percent of our
total exports.
11. ASEAN, of which Malaysia is a member, is committed to
establishing the ASEAN Free Trade Area (AFTA) by the year
2008. AFTA will be achieved through the implementation of
the Common Effective Preferential Tariff (CEPT) scheme under
which the tariff level will be gradually reduced to between
zero and 5 percent within a fixed time-frame. The dynamism
experienced by the ASEAN region and the implementation of
AFTA is expected to further accelerate economic development
in ASEAN countries. This would also create considerable
opportunities for businessmen within and outside this region
which the Turkish private sector could take advantage of.
12. Turkey has emerged as an important trading partner of
the central Asian countries. Turkey has also made several
efforts to increase the flow of trade and investment with
these countries. Besides, Turkey is also committed towards
jointly developing several infrastructure projects in the
central Asian countries. I believe that many of the
products and expertise required for the development
programmes could be sourced from Malaysia.
13. Malaysia regards the ratification of the agreement
establishing The World Trade Organisation (WTO) which
incorporates all the Uruguay Round agreements as crucial in
boosting business confidence as well as enhancing the
credibility of the multilateral trading system. For this,
Malaysia has ratified the WTO Agreement on 6 September 1994.
14. Malaysia has made substantial offers in the Uruguay
Round negotiations thus contributing to greater market
access for industrial and agricultural goods. The scope of
tariff bindings has increased from one percent to 65 percent
as a result of the Uruguay Round negotiations. Malaysia's
tariff offers now cover 79 percent of Malaysia's total
imports. Malaysia's manufactured exports will benefit from
a more than 45 percent tariff cut in Malaysia's export
markets.
15. In the area of services, Malaysia is committed to
liberalise 64 sectors and subsectors to foreign
participation. Malaysia has offered substantial
liberalisation, most favoured nation treatment and national
treatment. For example, substantial offers have been made
in professional services including computer services,
audio-visual services, maritime and aviation transportation
services, consultancy and a wide range of business services.
Further liberalisation of the services sector will be
undertaken in a progressive manner on a unilateral basis
commensurate with the level of economic development and the
development of the domestic services sector.
16. In accepting the Uruguay Round results as a `single
undertaking' or as a package, Malaysia is committed to
undertake the obligations pertaining to the improved trading
rules and codes such as anti-dumping, subsidies and
countervailing measures, the use of safeguard measures,
import licensing procedures, customs valuation, sanitary and
phytosanitary measures as well as technical barriers to
trade. Steps are being taken by Malaysia to modify its
policies and legislations to bring them into conformity with
the improved trading rules in the Uruguay Round agreements
which would be enforced by the WTO.
17. I have with me today a number of prominent members of
the Malaysian private sector. They are all, I am certain,
very keen to forge and strengthen further the bilateral
trade, economic and commercial ties between our two
countries. I am confident that the business meetings and
discussions that you will have during their stay here would
lead to fruitful results for both our countries.
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