Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : THE REPUBLIC OF MALAWI
Tarikh/Date : 02/05/97
Tajuk/Title : THE MALAWI-MALAYSIA BUSINESS MEETING
1. Let me first of all thank the Malawi Chamber of
Commerce and Industry for giving me the opportunity to
address this important gathering of prominent members of
the Malawian and Malaysian business community. I would
also like to take this opportunity to thank the
Government of the Republic of Malawi for the kind
invitation to visit this beautiful country and the very
warm welcome extended to me and my delegation.
2. I am indeed delighted to be here today in Blantyre
and greatly honoured to be able to share my thoughts on
how we can further enhance Malawi-Malaysia bilateral
economic and trade cooperation. A meeting such as this
is important as it enables us to discuss and exchange
views and identify areas of common interests which could
eventually contribute to the strengthening of bilateral
relations between our two countries.
3. This is the first official Malaysian business
delegation to the Republic of Malawi. Many historical
and geographical reasons may be the cause of the
relatively low level of bilateral relations in the past.
However, with better communication, a whole new chapter
in relations among nations is being established. It is
our hope that bilateral relations between the Republic of
Malawi and Malaysia can be upgraded by enhancing trade
and economic cooperation between our business
communities. This can be further strengthened by more
frequent exchanges of visits, both at the official and
business sector levels.
4. The Republic of Malawi 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 have with me here today Malaysian
businessmen who represent sectors like banking,
telecommunications, property development, mining,
construction, energy and tourism. They are keen to
establish business partnership with their Malawian
counterparts.
5. I hope this meeting in Blantyre will build upon the
initial ties established during the earlier visit in
September last year by a delegation of Malawian Cabinet
members and businessmen to Kuala Lumpur, led by His
Excellency the President himself. In this respect, it is
heartening to note that some business ventures are
already being implemented or at an advanced stage of
implementation. For example, Telekom Malaysia has
established itself in the GSM cellular telecommunications
business with a major stake in the Telekom Networks
Malawi while G-Two Holdings has entered into a joint
venture agreement with the Malawi Development Corporation
(MDC) to build hotels and develop housing, as well as
venturing into power generation and the development of
holiday resorts.
6. Malaysia has followed with great interest the bold
market reforms and the wide-ranging economic
restructuring undertaken by the Malawian government. The
establishment of the Privatisation Commission under the
Privatisation Programme in 1996 is a step in the right
direction towards a market-oriented economy. We are glad
that these efforts are now bearing fruit with economic
growth expected to reach 7.1 percent in 1997. I commend
the Republic of Malawi for their success and share the
aspirations of forging a distinct national identity.
7. The recent bold efforts undertaken by the Government
to induce and protect foreign-investments in the country
while at the same time expanding its industrial base is
timely and most welcome. Malaysia, has become a source
of foreign investment in Africa, supports this efforts
and we are prepared to cooperate with the Republic of
Malawi in establishing meaningful bilateral trade
relations.
8. Bilateral trade between the Republic of Malawi and
Malaysia, although small has been growing steadily.
Between 1992 and 1996, bilateral trade between our two
countries grew by an average of 3.5 percent per annum,
reaching US$1 million last year compared with just about
US$720,000 five years ago. During this period Malaysia's
exports to the Republic of Malawi expanded by about 4
percent each year to reach US$440,000 in 1996. On the
import side, Malaysia has absorbed some US$560,000 worth
of products from the Republic of Malawi last year. About
94 percent of these imports were made up of fresh,
chilled, frozen or simply preserved vegetables.
9. The present level of trade and the narrow range of
products traded do not reflect the true potential for
bilateral trade between our two countries. There is
considerable scope for expansion of bilateral trade. For
example, Malaysia can be a competitive source of imports
of machinery, tools and equipment for light manufacturing
and farming as well as consumer goods for Malawi's
growing economy.
10. On the international front, Malaysia advocates
greater South-South cooperation through trade among
developing countries. It is also our believe that
members of the South countries should work together to
improve trade and other economic activities for mutual
enrichment. Malaysia, therefore, actively encourages its
private sector to trade and to invest in countries of the
South, in order to play a role in 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 Malawi.
11. Malaysia has been cited as a model for economic
development. Maybe it is. But I would like to stress
that Malaysia's success is not a miracle as some suggest
it is. Our success is due to plain hard work, discipline
and a wish to be independent of foreign domination.
Agriculture and natural resources helped us but were
insufficient to create jobs for our people. And so we
went into manufacturing and kept ourselves competitive
through low inflation.
12. We found that one of the prerequisites for sustained
economic growth is an adequate and efficient
infrastructure. We note that Malawi too is focussing on
this by upgrading its communications facilities and
financial services to support other economic activities
in the country. Malaysian companies have ventured into
the South markets and accumulated considerable experience
in banking, highway construction, housing and hotel
development, power supply, oil and mineral exploration
and telecommunications. Malaysia is prepared to work
with Malawians in these areas. Malaysian businessmen who
are present here today are also keen to invest directly
in the 18 projects that are being privatised by the
Malawian authorities or acquire equity in the 140 State
Owned Enterprises that are open to foreign participation.
13. When Malaysia began its industrialisation it
concentrated on job creation through labour intensive
industries. Today Malaysia is short of workers and we
have to move some of our labour intensive industries to
countries with high unemployment rates and therefore
lower cost of labour. I am sure you will agree with me
that the first priority for a developing country is to
create jobs for its workforce. If it is agreeable we
would like to move some of our labour intensive
industries here in order to create reasonable incomes for
the Malawian workforce.
14. Malaysian companies have already invested in South
Africa, Zimbabwe, Namibia, Ghana, Guinea, Tanzania,
Mauritius and of course Malawi with the same objective.
These companies have acquired experience in the
development of export processing zones and housing
projects, the construction of hotels, tourist resorts and
highways, the provision of telecommunications and
television broadcasting services, banking as well as the
traditional area of plantation management.
15. This meeting today is a platform for both the
private sectors of our countries to explore the
possibility of going into downstream manufacturing and
processing activities, utilising locally available
resources like minerals and agricultural products. There
are vast opportunities in these areas since the Malawian
mineral resources are still largely untapped while most
of its agricultural produce are being exported in the raw
form to be processed elsewhere.
16. Apart from exploring the economic potential in each
other's country, the Malawian and Malaysian private
sector should also explore opportunities for cooperation
in third countries, We should focus our attention on the
newly emerging markets in the Southern and Central
African region where Malawian and Malaysian enterprises
could synergies their individual resources and
experience. For example, they could seek joint ventures
to import, warehouse and distribute Malaysian
manufactured products in Malawi, its neighbours and other
land-locked markets in Africa.
17. The Republic of Malawi and Malaysia have already put
in place the necessary framework to enhance business and
trade in the form of the `Trade Agreements' and
`Investment Guarantee Agreements' which were signed in
Malaysia last year. I therefore, urge both the Malawian
and the Malaysian business communities to identify areas
of cooperation for mutual benefits.
18. Under the Malaysian Technical Cooperation Programme
(MTCP) many participants from the South countries,
including the Republic of Malawi, have benefited from
various training programmes. For example, between 1992
and 1996, 32 Malawian officials have attended short
courses in areas like international diplomacy, public
administration, agriculture and environmental protection.
We would be happy to make available a few more such
training places.
19. I am confident that the foreign business community
will view the introduction of the Public Enterprises
(Privatisation) Act and the establishment of the Malawi
Investment Promotion Agency as affirmative action towards
creating a more conducive investment climate in this
country. I am certain that the Malaysian business
community too will respond positively to the initiative
taken by the Malawian government.
20. May I take this opportunity to once again thank you
for the warm reception and gracious hospitality accorded
to my delegation and I. We look forward to discovering
more about your fascinating land and its people during
this visit.
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