Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : SHANGRI-LA HOTEL, KUALA LUMPUR
Tarikh/Date : 19/09/95
Tajuk/Title : OPENING OF THE 68TH WORLD CONGRESS
OF THE INTERNATIONAL
I am delighted to be with you this morning at the 68th
World Congress of the International Association of Seed
Crushers (IASC). I would like to thank the President of
IASC, Mr. Sheldon Hauck, and the Malaysian Oil Palm
Growers' Council (MOPGC) for inviting me to declare open
this Congress. This is an invitation which I accept with
much pleasure, as Malaysia is a major producer of palm
oil and palm kernel oil.
2. This assembly, which serves as a valuable forum for
representatives from the major producers of edible oils
from all over the world, is very relevant and significant
to Malaysia. We shall, therefore, be following your
deliberations with considerable interest as they will
have a very important bearing on the future development
of the edible oil industry - an industry which is still
growing, especially the segment that comprises vegetable
oils.
3. Currently the production of fats and oils worldwide
is estimated at 91 million tonnes which is expected to
increase to 100 million tonnes by the turn of the
century. Of this amount, approximately 78 percent are
derived from vegetables and the balance from animal and
marine sources. By the year 2000, however, vegetable
oils are expected to account for almost 80 percent of the
world's total supply of oils and fats.
4. About 30 percent or 28 million tonnes of edible fats
and oils enter the world market as exports,of which almost
85 percent are derived from vegetable oils, illustrating
the predominant role that vegetable oils play in the world
trade in fats. Over the years,the share of vegetable oils,
both in terms of production as well as world trade, has
been growing steadily.This trend is expected to accelerate
further as people become increasingly health-conscious in
view of the generally lower levels of cholesterol
associated with vegetable oils when compared to animal
fats. Additionally vegetable oil come from renewable
and controllable sources and does not deplete nature's
bounty.
5. The edible oil industry is facing a stimulating
challenge with the opening up of important new markets
due to the spreading acceptance of the free market
economy and the prosperity which often accompanies it.
In this scenario it is important that the IASC should
ensure that the growth in production in response to
increased demand and new markets should be able to reach
potential customers without having to overcome unethical
barriers and political obstacles. I therefore urge the
industry to be united, to pool its resources and invest
in research as well as new technologies so as to remain
competitive.
6. One of the developments that has considerably
enhanced the prospects of international trade in general
and that of edible oils in particular is the conclusion
of the Final Act of the Uruguay Round and the agreement
to establish the World Trade Organisation (WTO). It is
our fervent hope that these institutions will advance the
cause of trade liberalisation and expand as well as
strengthen multilateral rules and disciplines governing
international trade, thereby promising further non-
inflationary growth in accordance with the objective of
achieving sustainable development of the world economy.
7. In the long term, the world economy is expected to
reap both static and dynamic gains from the conclusion of
the Uruguay Round. It has been estimated that static
gains from market access commitments would be a one
percent annual increase in world income over the next ten
years. More important, however, are the dynamic gains,
although these are harder to quantify. These are
benefits that accrue from externalities generated by
increased competition, economies of scale, greater
innovation, technological spillovers and the positive
effects of higher productivity growth on investments and
savings. Stronger trading rules and their enforcement by
the WTO are also expected to bring about enhanced
predictability and stability in trade policies and the
resolution of trade related issues.
8. In the midst of these positive developments, we are
deeply concerned by the attempts of some developed
nations to link trade policies and labour as well as
social standards. Linking international trade to social
conditionalities would amount to a hidden barrier and an
attempt to curb exports from developing nations to the
developed countries. It would in fact further impoverish
the already poor and prevent them from achieving the very
social reforms which such conditionalities were supposed
to bring about. We should free ourselves from the need
to hide behind such spurious tactics in the attempt to
counter fair competition. We should shake off these
negativity and be prepared to open up our countries to
international trade within the agreed rules designed for
fair competition.
9. In a dynamic world order, nothing remains static.
This is particularly applicable to the economic
development of nations and regions. While the 19th and
20th centuries were dominated largely by happenings in
Europe and the USA, the 21st century is increasingly
viewed as belonging to Asia in general and the nations of
the Pacific Rim in particular. This is a natural
development and should be welcomed by the world
community, both developed and developing, and by the
countries of the North as well as the South.
10. Economies of the West are essentially matured and
self-sustaining with high rates of personal consumption
and low rates of savings and capital formation. The
emerging nations, starting from a low base and with their
propensity for higher savings and investments, and with
the zeal and determination to catch up, are able to grow
at a more rapid pace than the more matured economies.
This growth would, however, be stunted if the developed
world not only does not lend a helping hand but actually
put obstacles in the way. The world is a much smaller
place now and we are all close neighbours. If neighbours
are poor there will be a spillover into other countries.
And one of the results will be massive migration of the
poor with all the attendent problems.
11. The turmoil in the currency markets is another
problem. Perhaps doing away with fixed exchange rates and
the gold standard may have some merit but the loss of
sovereignty over one's own currency and manipulation by
unscrupulous currency traders and Governments is creating
havoc, distortions and anarchy which hurt the poor
particularly. Malaysia's Yen debts rose 300 percent
because of the current anti-Japanese climate. And as
usual producers of raw materials have to sell more and
more in order to pay for less and less manufactured
goods. If before cheap and quality Japanese products
were available, now Japanese goods have become expensive
while their competitors' goods have not become any
cheaper.
12. We in Malaysia have turned away from depending on
the production and export of raw materials to avoid the
changes in the terms of trade. But now our manufactured
goods too are affected by the Yen revaluation and the
loss of our GSP privileges long before we reach the cut-
off points.
13. The GATT negotiations are finally over. We have now
decided to set up the World Trade Organisation (WTO). We
are beginning to doubt that the WTO will be any more
beneficial to the weak that the United Nations
Organisation has been to them. Might is still right and
it will remain so until there is a radical change in the
attitudes of the powerful.
14. As we stand on the threshold of a new century, we
should make a serious attempt to free ourselves from the
excess psychological baggage and restrictive mental
blinkers associated with narrow parochial and national
thinking. We should open up our minds to thinking global
as members of an enlightened world community.
15. We should be more sympathetic to the human tragedies
that have occurred in many parts of the world today. The
pain, misery and suffering caused by the horrors of war,
famine and natural disasters cannot be ignored.
16. The international community can and indeed must do
much more to assist in a concrete and tangible manner to
help out the poor and the unfortunate of the world. The
developed countries, which proclaim themselves to be
world leaders, and claim the high ground when it comes to
question of human rights and justice should set
themselves up as good and proper examples for the rest of
the world.
17. We hope that through the good offices of respected
international bodies such as the IASC, the message for
the pressing need to foster a caring world community can
be developed and a clear signal sent out to all
countries. In this way, we shall be doing our bit as
responsible world citizens and help in the development of
a caring world community of nations.
18. I thank the International Association of Seed
Crushers and the Malaysian Oil Palm Growers' Council once
again for inviting me to officiate and giving me the
opportunity to share my thoughts with you. I am
confident that this august gathering will succeed in its
objective of promoting the interests of seed crushers
worldwide and spread the goodwill among the peoples of
the world.
19. I now have much pleasure in declaring open the 68th
World Congress of the International Association of
Seed Crushers.
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