Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : JORDAN
Tarikh/Date : 02/10/94
Tajuk/Title : THE JOINT BUSINESSMEN MEETING
I am pleased to be given this opportunity to address
distinguished members of the Jordanian business and
industrial community. I commend the organisers for their
initiative in organising this meeting in order to bring
business leaders of our two countries to discuss and share
views of common interest. This meeting hopefully will
strengthen further trade and economic relations.
2. This meeting marks yet another important step towards
closer relationship between Jordan and Malaysia. Ties
between our two countries have always remained close and
cordial.
3. Although we have established some trade links, a lot
more can be done to enhance the development of the business
activities between our two countries. Geographically while
Jordan is some distance away from Malaysia, greater
interaction will create better awareness of each other's
potential. The business communities of both our countries
can identify new areas of interests for cooperation.
4. The volume of trade between Jordan and Malaysia has
increased from US$65 million in 1989 to US$102 million in
1993. However, bilateral trade is still small, accounting
for less than one percent of Malaysia's external trade.
Trade between our two countries is also confined to a narrow
range of products comprising mainly palm oil and palm oil
products from Malaysia and fertiliser from Jordan. Tfile
narrow trade could be attributed to, among other things, the
lack of direct contacts between the Malaysian and Jordanian
businessmen, as well as the limited information on products
and market opportunities.
5. Together, Malaysia and Jordan can cooperate and take
advantage of the opportunities in trade, investment and the
services. To facilitate bilateral cooperation, the
Governments of both countries have taken steps to put in
place the necessary framework agreements for the conduct of
commercial and economic relations. Both countries have
already signed an Air Services Agreement which has
facilitated travel between Jordan and Malaysia.
6. Many developing countries and newly emerging economies
over the last couple of years have taken steps towards
market liberalisation and deregulation. Jordan itself has
undertaken liberalisation and deregulation measures to
reinvigorate its economy. Jordan has also introduced laws
to protect and encourage investments and to promote
privatisation. Malaysia too has undertaken similar measures
which have resulted in greater trade and investment flows
into the country and has helped to boost technological
development, 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 with high
technology contents.
7. Malaysia has embarked on a concerted drive to enhance
trade, economic and commercial links with developing
countries and the 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 the People's Republic of China, Cambodia,
India, Papua New Guinea, the Philippines, Sri Lanka,
Vietnam, and a host of other countries, leading to 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.
8. In our effort towards a more focused 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 identify possible competitive sourcing of raw
materials and other inputs required by Malaysian companies
to promote the export of Malaysian services and investment
to the South, including Jordan.
9. Malaysia now encourages its private sector to venture
out and invest overseas. 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 Jordan and Malaysia's reverse investment
policy. It is therefore imperative that the private sectors
of Jordan and Malaysia take the opportunities to intensify
joint ventures and commercial links.
10. 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 the development of infrastructure. I am sure Jordanian
entrepreneurs have also developed expertise and capabilities
in various fields. Therefore, a joint partnership between
Malaysian and Jordanian companies could generate fruitful
business links in these activities.
11. 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 Jordan. I therefore wish
to invite Jordanian businessmen to visit Malaysia and see
for themselves the vast trade opportunities available for
their exports. Jordanian 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 Jordan. Malaysia has
a broad manufacturing base. Manufactured exports in 1993
amounted to US$34 billion representing 73 percent of our
total exports.
12. 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 the 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 Jordanian private sector could
take advantage of.
13. I have with me today a number of prominent members of
the Malaysian private sector who are very keen on forging
and strengthening 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.
|
|