Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : TOKYO, JAPAN
Tarikh/Date : 27/03/97
Tajuk/Title : THE LUNCHEON JOINTLY HOSTED BY SIX
JAPANESE ECONOMIC ORGANISATIONS
1. First of all, let me say how pleased I am to be here
with leading figures of the Japanese business community.
May I thank Japan Federation of Employers' Association or
Nikkeren for coordinating this sumptuous luncheon.
2. Malaysia's achievement of an average growth of over
eight percent for 9 years consecutively is due among
other things to its pragmatic economic policies and
management. Still the contribution of countries such as
Japan, by way of trade and investment and other related
activities play a very important role.
3. Malaysia has now reached a stage whereby its
industrial policy and strategies need to be revised
because of the very success of its industrialisation
policy. The initial objective of creating jobs through
labour intensive industries has resulted in full
employment and a shortage of labour. We now have to go
in for capital and technology intensive industries in
order to give our people better incomes and avoid
reliance on foreign labour.
4. Consequently, the Second Industrial Master Plan for
the period from 1996 to 2005 has been formulated which
will follow upon the earlier Industrial Master Plan (IMP)
introduced in 1985 and ended in 1995.
5. The IMP was a success. Targets set were surpassed
for the manufacturing sector. We set a target of 9.4
percent for the expansion of exports of manufactured
goods but we achieved 28.6 percent. The share of
manufactured goods exported increased substantially from
32.8 percent in 1985 to 79.6 percent of total exports in
1995. In terms of value-added, our forecast of a growth
rate of 8.8 percent per annum was also far surpassed by
the rate of 13.5 percent per annum actually attained.
As for employment, manufacturing sector's share of the
total labour force increased from 15.8 percent at the end
of 1984 to 25.5 percent (2.1 million workers) at the end
of 1995.
6. Malaysia should continue to improve its economic
foundation in terms of the quantity and quality of human
resources, development of indigenous research and
development capacity, technology, adequate supply of
modern infrastructure, and the provision of efficient
business support services.
7. We will accelerate, deepen and diversify the
manufacturing sub-sectors, and further enhance linkages
between and within industrial sub-sectors. We will
accelerate the development of indigenous technology and
capability, and international marketing and distribution
capacity.
8. You probably can tell from what I have just said
that Malaysia intends to move manufacturing operations
beyond just mere production to include R & D, design
capability, development of integrated supporting
industries, packaging, distribution and marketing
activities. We are gearing ourselves to produce products
and services for the global market.
9. We forecast that the manufacturing sector's share of
the GDP will increase from 33.1 percent in 1995 to 37.5
percent in the year 2000. By the end of the second
Industrial Master Plan in the year 2005, the
manufacturing sector would probably achieve a share of
38.4 percent of GDP.
10. Yet another interesting and significant development
in Malaysia is the Multi-Media Super Corridor (MSC). I
was here recently to talk to Japanese corporate leaders
in the IT field on what our MSC is all about. Some of
you may have heard me before. However, meeting with all
of you today gives me yet another opportunity to discuss
with you what Malaysia aims to do with the Multi-Media
Super Corridor and also, more importantly, to convince
you to be one of our founding partners in the MSC.
11. At Stanford University early this year, I gave a
speech during the Silicon Valley Conference on the topic
`Global Bridges to the Information Age'. There I
reiterated that Malaysia offers the MSC as a gift to the
world, a global bridge to the information age that will
enable genuine mutual enrichment for our partners
possessing the vision to participate.
12. Indeed, Malaysia in proposing the MSC aims to play a
useful role and contribute meaningfully to the
information age. We will provide participants in the MSC
with an environment without the usual constraints that
would frustrate them. Let me very quickly summarise what
the MSC has to offer.
13. First, on the physical side, we will offer you the
world's best physical infrastructure. We are building
the Kuala Lumpur city centre a massive intelligent
building complex. We are building a new hub airport. We
would also be having rapid train and highway links
between Kuala Lumpur and the airport, passing through two
new intelligent garden cities.
14. What is so special about these projects? When the
first phase is operational in January 1998 the new Kuala
Lumpur International Airport will have 80 gates with two
parallel runways. It will also become an integrated
logistic hub with the latest technology and equipment to
facilitate movements of people and goods. The
intelligent garden cities are named Putrajaya and
Cyberjaya. Putrajaya will be Malaysia's new electronic
government administrative capital. Cyberjaya is a city
which will provide the physical and psychological
environment for the pursuit of information age
technologies and business in a relaxed atmosphere. This
city of intelligent buildings, multimedia enterprise
estates, multimedia university, commercial and
residential housing and recreation facilities will be
able to support a living population of 100,000 people and
a working population of 150,000 people.
15. Second, we will have in place the world's best soft
infrastructure of cyber laws, policies and practices. We
have formulated a comprehensive framework of cyberlaws on
intellectual property, digital signature, computer
crimes, distance learning, telemedicine and electronic
government.
16. Third, we will provide a 2-5-10 gigabit open
multimedia network using the latest ATM switches to
provide fibre to the building. With a network having a 5
gigabit International Gateway, we will have direct links
to the US, Japan, Europe and other ASEAN countries. This
will be ready by 1998.
17. Fourth, we have set up a Multimedia Development
Corporation or in short the MDC, a one-stop agency, to
manage and market the MSC. The MDC will be setting up its
overseas offices around the world over the next two years
in order to service its clients. The MDC is incorporated
under the companies act and will be free from the
constraints of bureaucratic red tape. If it is of any
further assurance to you, the Deputy Prime Minister and I
myself will personally oversee the activities of the MDC
and try to resolve any issues or problems brought to its
attention.
18. No matter how meticulous the plan for economic
development by a government, it will never materialise
without the active participation of the private sector.
Without such support from the world's multimedia
corporations, the MSC will be but just a dream.
Fortunately though, we have managed to attract the
attention and gain the interest and support of some of
the world's biggest multimedia corporations. Some of
them, as you know, have also agreed to sit on the
International Advisory Panel. Nippon Telephone and
Telegraph (NTT), which has been cooperating with us on
this project from the outset, will be one of the first
companies to have begun operations in the MSC by setting
up its research and development facilities. We hope more
Japanese corporations especially those in the information
technology field and related areas would also locate
their plants, research and development facilities, and
operations in the MSC.
19. The changing economic structure of Malaysia from
commodity production to one dominated by manufacturing in
itself requires that private sector relations be changed
as well. In this regard, there need be a further
strengthening of relations between the private sectors of
both Japan and Malaysia. Wider and deeper linkages not
only between Chambers of Commerce, but between various
other economic organisations even on sectoral basis is of
utmost importance and urgency. Even when Malaysia
develops itself into a centre of educational excellence
our engineers and managers still need to acquaint
themselves with Japanese management and work ethics under
the Look East policy. We need the cooperation and
support of the Japanese business organisations in order
to make available their training facilities for our
professionals.
20. Keidanren, the Federation of Japanese Economic
Organisations, comprising top Japanese corporations,
would indeed do well to explore the possibility of
establishing greater and wider contacts with the relevant
and appropriate Malaysian private organisations. One
such organisation that I would like to introduce is MASSA
(Malaysia South-South Association). Set up about 5 years
ago, MASSA through its corporate arm, Masscorp, has
carried out activities aimed at `connecting' Asian firms
and entrepreneurs looking for international partnership
opportunities in countries seeking foreign direct
investment. Partnership in investments brings about
greater energy with the combination of the expertise and
experiences of respective country-partners. Malaysia
with its excellent relations with many developing
countries could open doors for Japanese business.
21. With the 2020 vision that we have set for Malaysia
and the various development projects that we have put in
place, opportunities both in trade and investments abound
for foreign business enterprises. Some countries may
have cheaper land prices, lower rentals, and lower wages
than Malaysia. But we continue to offer a stable, strong
and business friendly government, consistent policies, a
safe and healthy environment, and forward-looking,
dynamic and innovative economic regime to help investors
succeed without undue constraints.
22. I would, therefore, like to take this opportunity to
invite all Japanese business organisations at national,
regional or local levels or its members individually, to
take a keener interest in Malaysia and seek out trade and
investment opportunities both in Malaysia and, jointly
with Malaysian businessmen, in third countries. In your
hands lies the future of Japan-Malaysia economic
partnership.
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