Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : AUCKLAND, NEW ZEALAND
Tarikh/Date : 28/03/96
Tajuk/Title : THE BUSINESS MEETING AUCKLAND
NEW ZEALAND
I am indeed pleased to be here today at this
gathering of distinguished group of leaders from the
corporate communities of New Zealand and Malaysia.
Occasions like this provide an excellent forum for
discussions and exchanges of views, thus
contributing towards the enhancement of bilateral
ties between New Zealand and Malaysia, in particular
economic relations.
2. The cordial relations between the peoples of
New Zealand and Malaysia, which go back to
Malaysia's pre-independance days have been
strengthened through numerous Commonwealth
programmes. Indeed the contributions by New Zealand
towards the defence and socio-economic development
of Malaysia in the past have been substantial.
3. Although New Zealanders and Malaysians share
different historical and cultural backgrounds, there
are many common elements between us. We share
basically similar legal, social and economic
institutions. These commonalities have enabled us
to cooperate closely in many areas of economic and
social activities. This visit coming at a time of
significant changes in Asia is aimed at
strengthening the bilateral relations between our
two countries whilst exploring new avenues for
cooperation.
4. We are living in a very exciting time of rapid
changes and new opportunities in which new
technologies are forcing the globalisation of
business. Economic dynamism and growth have already
begun to shift to Asia even before the century ends.
The Uruguay Round has set the trend towards a more
open world trading system. Small countries like New
Zealand and Malaysia which are outward looking and
depend on trade for our prosperity should stand to
gain from these developments. We need to position
ourselves strategically to take advantage of these
market opportunities. As Malaysia and New Zealand
differ in resource endowments, there are many areas
of complementarities between us. We therefore need
to identify areas where our strengths and expertise
could be put to better use.
5. Both New Zealand and Malaysia have chosen to
privatise and give the private sector the major role
in the economy in the search for growth and
competitiveness. It is not surprising that in the
last five years, trade between New Zealand and
Malaysia has on average grown at 14 percent. In
1994 bilateral trade totalled US$545 million as
compared with only US$279 million in 1990. During
the first 11 months of 1995 the value of bilateral
trade stood at US$467.8 million.
6. While Malaysia's exports to New Zealand
comprise largely of consumer electrical and
electronic products, textiles, palm oil and rubber,
imports are made up of dairy meat, fruits, pulp and
paper and forest products. It is clear that our
distinct comparative advantages have given rise to
specialisation and complementarity in our economies.
The balance of trade, however, has consistently been
in New Zealand's favour over the last six years. As
Malaysia's share of New Zealand's global trade
accounts for only 1.6 percent, the imbalance is not
a problem. Far more important is the need to
increase the volume of trade. I therefore urge the
business community of both countries to re-examine
the potentials of each country in order to identify
more items for trade exchanges. New Zealand's
expertise in boat-building and marine engines offer
scope for this.
7. New Zealand, by optimising its resources, has
emerged as an efficient and competitive producer and
exporter of food and forest products. Within the
ASEAN region increased affluence and purchasing
power is expected to lead to a change in dietary
habits with an increase in the consumption of meat,
dairy and cereals in general. Malaysia and New
Zealand could work together to take advantage of
this explosion in demand for food in the Asian
region. Malaysia, located in the middle of the
dynamic ASEAN region of 400 million consumers can
become a conduit for the marketing and distribution
of New Zealand's food products through joint
ventures.
8. Malaysia as a member of the Commonwealth
inherited and adapted the British systems of
administration and legal framework. This should
make it very familiar and comfortable to New
Zealand's businessmen whose systems are of similar
origins. Since 1980 New Zealand companies which
took advantage of Malaysian opportunities, have
invested in 23 projects with approved investment of
US$20.8 million. More New Zealand companies should
locate their production in Malaysia in anticipation
of ASEAN Free Trade Area (AFTA). Malaysia also has
a generous incentive scheme for Overseas Head
Quarters and Buying Offices located in Malaysia.
The business community of New Zealand may wish to
take advantage of these incentives in the pursuit of
trade with this region and other parts of the world.
Regional Head Quarters located in Malaysia can be
100 percent foreign owned and employ 100 percent
foreign executives.
9. Malaysia has followed with great interest the
economic reforms and market liberalisation process
in New Zealand since 1984. These broad-based
reforms, coming ahead of world wide market opening
measures have made New Zealand a relatively
attractive place to do business. Although New
Zealand may be a small market, with a population of
3.5 million, its per capita purchasing power is high
and it has some definite economic strengths. New
Zealand has a multi-million dollar tourist industry,
with tourist arrivals from Asia alone having risen
by some 27 percent in 1995. Malaysia and New
Zealand could explore joint venture opportunities in
the hotel, tourism and property development. The
corporate sectors of the two countries could explore
New Zealand's strengths in forestry, boat building,
food processing and telecommunications for joint
ventures. I am confident that this visit will
result in some tie-ups in these areas between New
Zealand and Malaysia.
10. Malaysia on the other hand, is a major
manufacturer and exporter of household furniture in
key markets of the European Union, Japan and the
United States. The raw materials for furniture are
increasingly being sourced from renewable sources in
the interest of environmental conservation. To
ensure continued supply of raw materials for the
industry, we recognise the need to develop forest
plantations in Malaysia. New Zealand which has
extensive expertise in this field could invest in
Malaysia to develop forest plantations, and
integrate it with furniture manufacturing for the
export market.
11. Malaysia has developed close links with the
countries of the South and the emerging markets
through trade and economic cooperation. The
government of Malaysia has encouraged the Malaysian
corporate sector to invest and trade with the South
Countries. The corporate sector of New Zealand
could establish bridgeheads in these countries
through alliances and joint efforts with their
Malaysian counterparts, in three-way joint ventures.
12. I would like to conclude by saying that New
Zealand and Malaysia both have a global outlook and
subscribe to open markets to promote bilateral trade
and investment. We have many similarities in our
ways of doing business. We therefore need to map
out strategies to enhance corporate links between
our two private sectors for joint projects in the
ASEAN region and in the newly emerging markets. A
combination of both our individual strengths in key
niche areas would be formidable. I therefore urge
the corporate communities of both countries to take
up the challenge.
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