Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	CONAKRY, GUINEA  
Tarikh/Date 	: 	06/11/96 
Tajuk/Title  	: 	THE MALAYSIA-GUINEA 
			BUSINESS SEMINAR  



1.   It gives me great pleasure to be here in Conakry today in
conjunction  with  the Malaysia-Guinea  business  seminar.   I
welcome  this opportunity to address the business  communities
of both our countries, as it provides an ideal opportunity for
the  meeting  of  minds  and exchange  of  ideas  between  our
businessmen.  The  business communities of our  two  countries
have  a  critical  role  to  play  in  forging  and  enhancing
bilateral  relations  between us.  In this  context,  Malaysia
hopes  that  increased interaction between our two  countries,
through  visits and forums such as this, will boost  bilateral
trade,  eventually leading to the strengthening  of  relations
between the peoples of Guinea and Malaysia.

2.     The   realignment  of  economic  forces  and  business,
globally,  requires  a  reappraisal of  traditional  forms  of
relationships among nations.  Developing countries like Guinea
and  Malaysia  should take the opportunity to  forge  mutually
beneficial  trade  and business alliances with  new  and  non-
traditional  partners  consistent with the  realities  of  the
world.  Distance and history need not stand in the way  of  us
making  new  friends,  and learning from  the  experiences  of
others in different parts of the world.  In the past, the lack
of  knowledge about each other had been the main  obstacle  to
the development of relations between Malaysia and countries in
this region.

3.    Today's modern communications systems has made the world
a  very  much  smaller place, hence physical distance  between
Malaysia  and  this part of the world should cease  to  be  an
impediment  to the advancement of our ties.  The barriers  are
more  psychological than real.  Malaysia has  strong  economic
and  cultural relations with countries which are even  further
away  than Guinea, and accessibility has never been a problem.
North America, for example, is one of Malaysia's major trading
partners.  During the apartheid era, South Africa was  a  very
remote  destination for most Malaysians.   However,  within  a
very  short  span of time after sanctions were  lifted,  South
Africa  has  emerged  as  Malaysia's  most  important  trading
partner  in Africa.  Likewise, I believe there are no  reasons
to  prevent  Guinea  from emerging as the focus  of  Malaysian
business activity in Western Africa.  What is important is the
persistence  of interaction between our two countries  at  the
political and commercial levels.

4.    It  is in this light that Malaysia seeks new friends  in
Africa.  This mutually beneficial experiment in the spirit  of
South-South  cooperation, was given further meaning  when  His
Excellency,  President Gen. Lansana Conte visited Malaysia  in
September  1995.  My return visit today, is testimony  to  our
seriousness in enhancing bilateral relations with  Guinea  and
with  this  part of the world.  It is significant  that  I  am
accompanied  by  about  90 corporate  leaders  from  Malaysia,
representing some of the leading companies in the country from
sectors  such as telecommunications, power generation, mining,
property  and infrastructure development, banking and trading.
I  am  confident that this visit of Malaysian businessmen  who
have  accompanied me to Guinea will enhance the ties initially
established  in Kuala Lumpur and explore new areas  of  common
interest.

5.    We in Malaysia are encouraged by the successful economic
and fiscal reforms undertaken by the new Government in Guinea.
The  ongoing  economic  liberalisation  and  privatisation  of
industries  has  already  laid the  groundwork  for  increased
efficiency  and  growth in key sectors of  the  economy.   The
reforms, while creating greater international confidence among
foreign  investors,  has  also  increased  the  prospects   of
sustained economic growth in Guinea which reached 4.6  percent
in 1995.

6.    Malaysia is appreciative of the formidable task faced by
the  Guinean Government in developing the country.  Therefore,
Malaysia  expects  that its relations with  Guinea  should  go
beyond  the area of business and cater to the nation  building
needs  of Guinea as well.  This commitment is attested by  our
efforts  to  complement the programs of the Guinean Government
to meet the basic needs of the people.  Malaysia has taken the
initiative  to  work with Guinea in moving towards  food  self
sufficiency  through the development of rice farming,  milling
and  distribution.  We are prepared to work together in  other
areas to assist the government in realising its socio-economic
objectives  where  we  may be competent.  Likewise,  Malaysian
businessmen  here  today  could  explore  mutually  beneficial
ventures that would bring more lasting and meaningful benefits
to our peoples.

7.   It is reported that agriculture which accounts for almost
24  percent   of GDP, and employ 80 percent of the  workforce,
has  much potential for development in Guinea.  I propose that
Malaysian  companies  which  are known  for  their  plantation
expertise  take a serious look at transferring their  know-how
to   Guinea.    Malaysian  companies   could   establish   new
plantations  in Guinea.  Alternatively, downstream  activities
based   on   the  processing  of  coffee,  cocoa   and   other
agricultural produce could be undertaken together.

8.    The mining industry in Guinea accounts for 85 percent of
the  country's exports.  Guinea is endowed with resources such
as  bauxite and vast reserves of other untapped minerals which
have  the  potential to contribute to the economic  growth  of
Guinea.   Malaysian  investors could  heed  the  call  of  the
Guinean  Government  to  help develop this  potential  through
joint  ventures  with  their  Guinean  counterparts.   It   is
heartening  to know that some Malaysian companies are  already
at  an  advanced stage of negotiation in investing in some  of
these  ventures.  Development of the mining industries  should
open  the  threshold  towards broad base industrialisation  in
Guinea   particularly  in  down  stream   mineral   processing
activities.   This  is  all the more  feasible  as  Guinea  is
reported  to  have  excellent  potential  for  generation   of
competitively priced power from hydro-electric sources.

9.    Bilateral  trade  between Guinea and  Malaysia  although
relatively small has been growing steadily from US$3.7 million
in  1994  to US$4.6 million in 1995.  The structure  of  trade
between  our  two countries indicates that there are  definite
areas  of complementarity between us.  While Malaysia  imports
raw  materials required by its industries, Guinea on the other
hand,  imports  manufactured products made up  of  detergents,
processed  palm  oil, and articles of plastics from  Malaysia.
The  present level of trade with Malaysia is low compared with
Guinea's  total  global  trade of US$1,400  million  in  1995.
Guinea's  major exports of bauxite, alumina, gold  and  coffee
could  easily find markets in Malaysia.  Malaysia's low import
tariff  regime  provides opportunities for strengthening  this
complimentary trade relationship between Guinea and  Malaysia.
Guinean businessmen should take advantage of this by exporting
more to Malaysia.

10.   I  also urge the business community of Guinea to explore
fully  Malaysia's  capability to cater for  the  consumer  and
industrial   requirements  of  Guinea  and  its   neighbouring
markets.   Malaysia's  competitively  priced  products   could
substitute for many manufactured goods which Guinea  currently
sources  from elsewhere.  I would like to suggest that  Guinea
use  Malaysia  as their base to source consumer  products  and
industrial inputs from the dynamic East Asian region of  which
Malaysia  is  a strategic part.  As a member of  the  Economic
Community  of West African States, which is set  to  become  a
free trade area, Guinea could position itself as a gateway  of
the West African markets for imports from the Asean region.


11.  It is Malaysia's experience that to ensure the success of
market  reforms  and reinforce economic growth, infrastructure
development   is  a  necessary  prerequisite.   Malaysia   has
extensive  experience in infrastructure and rural development.
We  believe that the Malaysian and Guinean private sector  can
complement each other in the fields of tourism, housing, power
supply  and  infrastructure development in Guinea.   We  would
like  to  offer to jointly develope these services for Guinea.
I  urge the Malaysian private sector to address such key areas
as  housing  and rehabilitation of power supply  as  it  would
contribute directly to the quality of life in Guinea and  lead
to other economic spin-offs as well.

12.   As Guinea and Malaysia are countries with small domestic
markets  it  is  imperative that we have a global  outlook  to
achieve  growth.   Let us therefore explore  ways  of  working
together  in  the international market.  Malaysian  companies,
should  take a longer term view of their operations in  Guinea
and  participate as good corporate citizens in  the  country's
development.   They  should seek joint  ventures  which  would
enable  them  to  tap the European markets  as  Guinea  has  a
special  relationship with the European Union under  the  Lome
Convention.

13.  Given the present momentum of change, I am confident that
the  Guinean  economy will soon be able to  achieve  sustained
economic growth.   Malaysia on its part will urge its  private
sector  to  work  together with their Guinean counterparts  to
achieve Guinea's national goals.