Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : BUKIT KEWANGAN, KUALA LUMPUR
Tarikh/Date : 15/08/97
Tajuk/Title : MAJLIS PERASMIAN BANGUNAN BURSA
SAHAM KUALA LUMPUR
1. Saya ucapkan terima kasih kepada Bursa Saham Kuala
Lumpur (BSKL) kerana menjemput saya untuk merasmikan
bangunan barunya pada malam ini. Upacara yang
bersejarah ini bukan sahaja amat bermakna bagi BSKL,
bahkan juga kepada negara. Ini ialah kerana bangunan
baru ini mencerminkan taraf pencapaian BSKL sehingga
kini.
2. I would like to say how privileged and proud I am
to be here tonight with all of you to celebrate this
historic occasion, the move by the Kuala Lumpur Stock
Exchange, a national institution, into its very own
building. While we can appreciate that this occasion
must surely rank as the most significant in the KLSE's
history, it is also a moment for rejoicing for the
entire nation. This move is a reflection of the
progress and stature the local bourse has achieved over
the years.
3. Already the largest stock market in South East
Asia, the KLSE nestles comfortably within the top 15
exchanges in the world. This is certainly no mean feat
for a bourse that only 10 years ago was not even given
due recognition as a stock market in its own right
despite having been in existence since 1960. The
growth of the KLSE has been remarkable, especially in
the last seven years. This growth is reflected in the
number of companies listed, the market capitalisation,
trade volume and, more importantly, the tremendous
infrastructure developments which have kept the
Exchange on par with other international stock
Exchanges.
4. Today, the stock market plays an important role in
the nation's economy. As a key component of the
Malaysian capital market, the Exchange has been a
principal source of investment funding and avenue for
investment in the country. Looking at the various
components of KLSE - the listed companies, the
financial intermediaries and of course, the investors -
one will not fail to see how KLSE has become the
embodiment of the entrepreneurial spirit that we have
sought to cultivate to develop our nation's economy.
These components have contributed in no small measure
to the economic prosperity that Malaysia has enjoyed
especially over the past decade.
5. Only two decades ago, we were an agricultural and
mining based economy. Today, as a result of the
decision to industrialise, particularly to manufacture,
industry now accounts for close to 14 percent of the
national GDP while manufactured products account for
around 80 percent of total exports.
6. Notwithstanding the recent volatility in the
foreign exchange markets and developments in the
capital market, the economy remains fundamentally
strong, reflecting the resilience of the economy.
Developments in the first few months of the year show
that economic growth remains on track with growth being
in the region of 8.2 percent for the first quarter and
expectations of eight percent growth for the year as a
whole. Inflation is contained and the fiscal position
of the government remains strong and hopefully we can
still show a budget surplus in 1997. The nation's
savings also continue to remain high at 38 percent of
GNP and our external debt remains low at 30 percent of
GNP.
7. These favourable economic performance are
supported by a sound financial sector with the banking
system remaining strong. Despite Malaysia's strong
economic and financial conditions, there has been
`turbulence' experienced recently in the money and
stock markets as a result of speculative attacks by
international manipulators and speculators. This
should not, however, discourage us from continuing to
invest and to encourage investment particularly in
export-oriented technology and capital intensive
industries. We must look at the long term prospect and
be willing to take calculated risks. While maintaining
low inflation we must strive to be more productive.
8. Here I would like to point out that the
relationship between the stock market index and the
economy of a country has changed somewhat. The indices
no longer reflect the state of the economy. They
merely indicate the state of the market. This is
because investments are less often made on the basis of
economic fundamentals but more on the performance of
the indices themselves. And as we all know the
performance of the indices is now largely subject to
the manipulation and strategies of the big investors.
One may say that it is a case of the tail wagging the
dog.
9. A good stock market should be open to but not
dependent upon investments by foreign fund managers.
While their activities may boost prices, they can also
quite deliberately cause a collapse of the market. This
is because they are interested mainly in capital gains.
Even in their own country's stock exchanges they invest
with this intention. The difference is that their
profit taking in other countries results in a massive
outflow of funds and a depression of the indices.
10. Large local funds can also do the same but the
funds generally remain in the country and has to be
reinvested domestically. There is therefore no nett
loss to the economy when local funds speculate in the
local exchange. Unfortunately, the managers of local
funds are not the movers on the stock exchange. They
are mere followers who respond to the indices rather
than influence them. We of course do not encourage
local funds to influence the market. But the fact
remains the foreign funds do this.
11. The Government will continue to welcome foreign
investors but local investors should also flex their
muscles on the stock exchange. If we are to remain
healthy, local investors must dominate the exchange.
Unless they cushion the effect of foreign funds
investments, we will continue to see a roller coaster
of an index. This of course will be good for some but
generally will not be good for the country.
12. We are seeing all these happening to our financial
and stock markets lately. Some insist that there is no
conspiracy. But whether there is a conspiracy or not
the fact is we are seeing what our critics have been
predicting all along -- a decline in Malaysia's
economic indices. That the indices have been due to
their own manipulation does not bother them. They are
happy because they have made their prophecy come true.
13. On the part of the government, sound and
consistent policies will continue to be pursued to
achieve sustainable growth. The income of our people
at all levels must be improved while maintaining
productivity at high levels. It must always be
remembered, however, that what is important is the
purchasing power of the wages and profits earned and
not the amount of money made. For this reason the
Government will strive towards zero inflation.
Everyone should and can do their bit for this.
14. The private sector on its part needs to reassess
the situation and focus on the many potential
opportunities available in the economy. Investment
opportunities exist in all sectors, particularly in the
manufacturing, services and I.T. sectors. The economy
has now entered into a challenging phase where
industrialisation will be more capital-intensive, will
involve high technology and will be knowledge-based.
This has also opened up vast investment opportunities
in related infrastructure, services and I.T. areas.
15. The Multimedia Super Corridor has in fact
stimulated the interest of foreign investors around the
world. In addition, the privatisation programme will
continue to create numerous opportunities in areas once
monopolised by the Government. The growing volume of
outward investment by Malaysians in recent years
benefits the nation in several ways such as creating
markets for our exports of goods and services as well
as stimulating strategic alliances between domestic and
foreign firms. Nevertheless, Malaysian investors
should not ignore the numerous opportunities at home.
16. A critical factor that will enable Malaysia to
sustain its favourable economic performance is the
ability to remain competitive. Despite the almost 10
years of strong growth, Malaysians cannot become
complacent about future prospects. The recent
developments may in fact be a blessing in disguise to
remind us of the need to be agile and flexible in
business and to adjust quickly as and when necessary in
a very competitive global environment. Local
entrepreneurs need to accelerate efforts to move up to
a higher level of technology, to be innovative in terms
of new designs, to cut costs and increase efficiency so
as to become competitive in the global market. Firms
should not depend on the exchange rates to increase
their competitiveness. On its part, the government
will continue to be supportive of the private sector's
efforts to enhance productivity through, among other
things, human resource development.
17. While the important role of the private sector
cannot be overemphasised, close partnership between the
Government and the private sectors remains an important
factor in the development of the country's economy. The
synergy between the two parties will lead to the
attainment of the nation's aspiration of becoming a
developed nation by the year 2020. Such cooperation,
apart from helping to develop the nation, will actually
benefit the private and public sectors. Government
revenue which is used to pay the wages and salaries and
other perks to Government employees are dependent
partly at least on the taxes collected from the
business sector.
18. At this crucial juncture in the development of the
nation, we need to be constantly alert to the changes
taking place around us -- locally, regionally and
globally. As we move from the post industrial era,
into the information age where national boundaries will
not be able to protect us, we are going to be exposed
to powerful predators from abroad who may not be too
sympathetic to our well-being or national aspirations.
19. We have therefore to pursue our economic agenda
with even greater commitment and energy to ensure rapid
and sustainable growth and to guarantee an economy that
is fully competitive, robust, dynamic and resilient,
fast on its feet and able to outperform our rivals. We
have to believe in our goals and in our capacity to
attain them. We cannot allow ourselves to be dictated
to by external parties whose interests lie elsewhere.
20. I am also pleased to note that the KLSE has
committed itself to contributing towards the well-being
of the community at large alongside its commitment
towards becoming a world class stock exchange. Tonight
the KLSE group of companies will contribute a total sum
of RM5.25 million to several organisations in need.
This perpetuates a trend for which I would like to
commend the Exchange wholeheartedly. I also note with
pleasure that the KLSE has taken a very positive
initiative to set up a chair in securities and finance
at Universiti Utara Malaysia.
21. Another contribution to the community from the
KLSE is a service which is to be launched this evening
- the KLSE-RIIAM Information System or KLSE-RIS. As I
understand it, this system will provide comprehensive,
up-to-date stock market information on the internet and
will be available free of charge to anyone with
internet access. This also bodes well for the nation's
move into the information age.
22. I would also like to take this opportunity to
welcome delegates from the East Asian and Oceanian
Stock Exchanges Federation to their 16th Annual General
Assembly which I understand will be held tomorrow in
this building.
23. Finally, I would like to congratulate the Kuala
Lumpur Stock Exchange for moving to these new premises.
The graceful and classical design of Exchange Square is
certainly most befitting the KLSE's stature today. We
hope the Exchange will continue to move forward and
chart an even more successful course in the new
millennium, thus contributing to the continued economic
growth of Malaysia.
24. Dengan ini, saya dengan sukacitanya merasmikan
Bangunan Baru Bursa Saham Kuala Lumpur dan The Exchange
Square.
|
|