Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : CAPE TOWN, SOUTH AFRICA
Tarikh/Date : 24/08/95
Tajuk/Title : BUSINESS COMMUNITY MEETING
I am delighted to be present here at this
session with distinguished members of the business
community in the Cape Town and its surrounding areas.
The enthusiasm shown by the business community in
Malaysia, as reflected by the large delegation
accompanying me on this visit to South Africa, is a
vote of confidence of the Malaysian business community
on the future of South Africa under the present
government.
2. Malaysia and South Africa have excellent bilateral
relations, which is growing from strength to strength.
The constant exchange of visits, which has taken place
over the last two years, has enhanced commercial
contacts and networking between the peoples of our two
countries. Such exchanges are vital in identifying
prospects for investment and trade. The availability
of direct flights between Kuala Lumpur and Johannesburg
and Cape Town also facilitates trade contacts between
our two countries.
3. I am happy to note that many of the prospects
identified for trade and investment between our two
countries have largely been followed through and
translated into increased bilateral trade and
investment. In a relatively short span of two years,
bilateral trade has increased significantly. Malaysia
is already, among developing countries, a leading
investor in South Africa over the past two years. Our
total trade for the first four months of 1995, at
US$190 million was four times our total trade during
the corresponding period in 1994. This reflects the
growing trade links between our two countries.
Malaysia's total trade with South Africa for the whole
of 1994 was US$295 million. Despite the recent
successes in stepping up bilateral trade, Malaysia's
total trade with South Africa is currently still less
than one percent of her total global trade. Therefore,
there exists immense potential to step up further the
value of our bilateral trade.
4. Malaysia's main exports to the Cape Town area are
still confined to primary commodities such as timber,
palm oil and latex. Malaysia has the potential to be a
competitive source of supply for products such as
manufactured rubber goods, electrical and electronic
products, building materials and furniture. Our
competitiveness as a supplying country globally is
reflected in the fact that, if re-exports are excluded,
Malaysia is currently the 17th largest exporter in the
world.
5. Among the many products from the Cape Town area
that have potential in Malaysia are fresh fruits and
fruit juices. Currently, most temperate climate fruits
and juices that are imported into Malaysia originate
from Australia, New Zealand and the United States.
With greater emphasis on promotion, there is
considerable scope for South Africa to increase its
market share in Malaysia for this product sector. An
effective way to promote further direct trade between
our two countries is by participating in each other's
trade fairs. Malaysia welcomes South Africa to
participate in trade fairs held in Malaysia in order to
create greater awareness of the products that South
Africa has to offer. On Malaysia's part, we will be
participating in the South African International Trade
Exhibition (SAITEX) scheduled for October, 1995. I
would like to invite the South African business
community to visit the Malaysian Pavilion at the
Exhibition.
6. The favourable business climate in Malaysia has
enabled Malaysian companies to expand, not only within
the country, but also increasingly abroad. Malaysian
companies have, in recent years, undertaken numerous
projects abroad. One particular area where Malaysian
companies have developed expertise is in the
construction sector. Malaysian construction companies
have undertaken construction projects in many countries
including South Africa, the People's Republic of China,
Australia, Vietnam and Mauritius. These projects were
completed according to specifications and within the
specified timeframe.
7. The natural beauty of the Cape Town and
surrounding areas make it ideal for tourism
development. There are immense opportunities for joint
ventures and alliances to be formed between the
business communities of our two countries to develop
the tourism potential of this region by undertaking
investments in the hotel and resort development sector.
Apart from providing employment, the development of the
tourism industry will also widen the horizon of our
peoples and bring them into close contact, something
which will be beneficial for our relations.
8. Malaysia's experience in the construction of
affordable housing will also be of relevance to South
Africa's own efforts to provide adequate housing for
its people. Other possible areas for Malaysian
investment in this region include the building
materials sector, sewerage and water supply projects,
as well as the telecommunications sector.
9. Malaysian investors abroad have generally proven
to be reliable business partners by their foreign
counterparts. They have been observing the laws of the
country in which they operate and are conscious of the
aspirations and concerns of the people in the community
in which they operate. The government, nevertheless,
constantly reminds Malaysian investors abroad to be
always sensitive and to preserve the good image of the
country when investing abroad. The government has also
made it clear that it will not hesitate to act against
any company that tarnishes the good image of Malaysia
abroad. Malaysian investors abroad have been urged to
take on a long-term perspective when venturing abroad,
and to transfer technology and train local workers at
all levels. Malaysia actively promote a caring society
at home and we want to be the same abroad.
10. Its easy access to the rest of the world has made
Malaysia an attractive centre for trade, investment and
tourism. It is a stable multiracial country with a
young, educated, and highly productive workforce.
Malaysia has good infrastructure facilities and a well-
established banking and financial services network to
support the business sector. The country practises
parliamentary democracy and has a strong, stable
government committed to making Malaysia a developed
country by the year 2020. South African companies can
also consider establishing their operational
headquarters in Malaysia to serve the ASEAN and East
Asian region. The Malaysian government provides
incentives for companies establishing their operational
headquarters in Malaysia.
11. I am confident that your ventures with Malaysia,
whether as joint-venture partners, traders or investors
will be a profitable and mutually beneficial experience
and would contribute to enhancing bilateral relations.
In the area of restructuring a multiracial,
multireligious and multicultural society and promoting
growth, Malaysia will be pleased to share its
experience with South Africa, if our experience is
relevant in creating a better future for all South
Africans.
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