Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : ACCRA, REPUBLIC OF GHANA
Tarikh/Date : 09/11/96
Tajuk/Title : THE BUSINESS LUNCHEON HOSTED
BY MATRADE
1. Let me first of all say how happy I am to be here today
in Accra and to be given the opportunity to address this
gathering of prominent members of the Ghanaian and Malaysian
business community. A meeting such as this enables us to
discuss and exchange views on matters of common interests and
eventually contribute towards the strengthening of bilateral
relations between our two countries.
2. This is the first official Malaysian business delegation
to visit the Republic of Ghana. I believe there were many
reasons for the relatively low level of bilateral relations in
the past. However, with the globalisation of the world
economy, a whole new chapter in relations among nations is
being established. It is our desire that bilateral relations
between the Republic of Ghana and Malaysia be upgraded by
enhancing trade and economic cooperation between our business
communities. This can be further strengthened later on by
more frequent exchanges of visits, both at the official and
business sector levels.
3. The Republic of Ghana and Malaysia both subscribe to a
free market system, where private enterprise assumes a leading
role in the economy. This meeting of the private sectors of
our two countries is aimed at providing the opportunity to
discuss and map out strategies for our mutual benefits through
private sector led initiatives. I am accompanied by about 90
businessmen who represent sectors like banking,
telecommunications, property development, mining,
construction, energy and tourism. They are keen to establish
business partnership with their Ghanaian counterparts.
4. This meeting in Accra, I am sure, will build upon the
initial ties established during the two earlier visits in 1995
by Ghanaian businessmen to Kuala Lumpur, one of which was led
by the President himself. The workshop on `Investment
Opportunities in Ghana' which was also held in Kuala Lumpur
last year had generated great interest among the Malaysian
business community. In this respect, it is heartening to note
that some business ventures are already being implemented or
are at an advanced stage of negotiations.
5. Malaysia has followed with great interest the bold market
reforms and the wide-ranging economic restructuring undertaken
by the Ghanaian government. The adoption of Economic Recovery
Programme (ERP) in 1983 and the privatisation of state
corporations under the Divestiture Programme in 1988 has
resulted in increased output in many sectors of the economy.
We are glad that these efforts are now bearing fruit with
economic growth expected to reach five percent in 1996.
6. The recent efforts by the Government to make the Republic
of Ghana the commercial, financial and maritime hub of this
sub-region is a move in the right direction. Malaysia, which
has always been a trading nation supports this efforts and we
are prepared to cooperate with the Republic of Ghana in
establishing meaningful bilateral trade relations.
7. Bilateral trade between the Republic of Ghana and
Malaysia, although small in relation to Malaysia's global
trade has been growing steadily. Between 1990 and 1995,
bilateral trade grew on average by 60.3 percent per annum,
reaching US$6.6 million last year compared with just about
US$700,000 five years ago. During this period Malaysia's
exports to the Republic of Ghana expanded by about 60 percent
each year to reach US$3.9 million in 1995. On the other hand,
Malaysia imported some US$2.7 million worth of products from
the Republic of Ghana last year. About 35 percent of these
imports were made up of raw materials.
8. The present level of trade and the narrow range of
products traded does not reflect the true potential for
bilateral trade between our two countries. I strongly
believe that there is considerable scope for expansion of
bilateral trade. While Malaysia can be a competitive source
of imports for Ghana's growing economy, the local business
community here should also explore ways of exporting more of
Ghana's products to Malaysia. The business community from our
two countries should not be constrained by the myth that trade
cannot occur and grow among developing countries like ours.
Malaysia's exports to countries of the South rose from 12.2
percent in 1990 to 16.5 percent of total exports in 1995, thus
disproving this notion. I urge you, ladies and gentlemen, to
prove that trade between the Republic of Ghana and Malaysia is
not only possible but can also grow rapidly.
9. Malaysia advocates greater South-South cooperation
through trade among developing countries who share the common
aspiration of self-reliance. It is also our belief that
members of the South countries should work together to improve
their condition through mutually beneficial trade and other
economic activities. Malaysia, therefore, actively encourages
its private sector to trade and to invest in other countries
of the South in order to contribute indirectly to their
economic development. Malaysian companies have responded to
this call, and it is in this spirit that Malaysian businessmen
are here today in the Republic of Ghana.
10. Malaysia's development experience has shown that one of
the prerequisites for sustained economic take off is the
development of an adequate and efficient infrastructure. It
is therefore fitting that the Republic of Ghana is targeting
to upgrade its communications facilities and power generations
to support other economic activities in the country.
Malaysian companies have successfully ventured into the South
markets and accumulated considerable experience in highway
construction, housing and hotel development, power supply, oil
and mineral exploration and telecommunications. Malaysia is
prepared to share her experience in these areas with the
Republic of Ghana. Malaysian businessmen who are present here
today are also keen to invest directly in the 53 projects that
are being privatised by the Ghanaian authorities or acquire
equity in the 69 enterprises that are open to foreign
participation.
11. Malaysia's globalisation strategy also encourages its
industries to relocate in countries of the South where viable
and appropriate. Malaysian industries are moving to new
locations in search of resources and factors of production
which are abundant and competitively priced. Malaysian
companies have also successfully ventured worldwide into the
services industries like banking, mining and tourism related
projects. This meeting today should also be viewed as a
platform for the private sector in both countries to explore
the possibility of going into downstream manufacturing
activities, utilising locally available resources like
minerals, timber and other agricultural products.
12. Apart from exploring the economic potential in each
other's country, the Ghanaian and Malaysian private sectors
should also explore opportunities for cooperation in third
countries. We should focus our attention on the newly
emerging markets in the West and Central African region where
Ghanaian and Malaysian enterprises could combine their
individual resources and experience. For example, they could
seek joint ventures to import, warehouse and distribute
Malaysian manufactured products in Ghana, its neighbours and
other land locked markets in Africa and similarly export these
countries' products via Ghana.
13. The Republic of Ghana and Malaysia have already put in
place the necessary framework to enhance business and trade in
the form of a `Trade Agreement', and `Economic, Technical,
Scientific and Cultural Cooperation Agreement' and an
`Information Cooperation Agreement' which were signed in
Malaysia late last year. Further to this, the bilateral `
Agreement for the Promotion and Protection of Investment
between the Republic of Ghana and Malaysia' is to be signed
during this visit. These agreements represent the sincerity
and commitment of our two nations to cooperate and promote
bilateral economic relations. Now, it is the turn of the
private sectors of the Republic of Ghana and Malaysia to take
advantage of these agreements and to turn these aspirations of
our two governments into reality. I therefore, urge both the
Ghanaian and the Malaysian business community to identify
areas of cooperation which they could undertake for mutual
benefits.
14. In the spirit of South-South cooperation, Malaysia is
prepared to share its experience in privatisation, foreign
investment promotion and economic development planning with
the Republic of Ghana. Under the Malaysian Technical
Cooperation Programme (MTCP) in Malaysia, many participants
from the South countries, including the Republic of Ghana,
have been exposed to relevant areas of training and
experience.
15. The Ghanaian people have shown strong resilience and
capability in achieving economic recovery within a short
period. I am confident that the foreign business community
will view the recently introduced Privatisation Act and the
setting up of the Ghana Investment Promotion Center as
affirmative actions towards creating a more conducive
investment climate in this country. I am certain that the
Malaysian business community will also respond positively to
the initiative taken by the Ghanaian Government.
16. Lastly, I urge the Malaysian business community doing
business in the Republic of Ghana to take a longer term view
of their business interests in this country and seek to
establish lasting business relationships that are reciprocally
beneficial. They must always take care to be good corporate
citizens sensitive to the aspirations of this country. I am
certain the Republic of Ghana will continue to create the
necessary environment to make this country an attractive place
to do business.
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