Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : CHINGGIS KHAAN HOTEL, ULAANBAATAR,
REPUBLIC OF MONGOLIA
Tarikh/Date : 09/09/97
Tajuk/Title : THE BUSINESS LUNCHEON WITH THE
MONGOLIAN CHAMBER OF COMMERCE &
INDUSTRY AND MALAYSIAN
BUSINESS DELEGATION
1. I wish to thank the Mongolian Chamber of Commerce &
Industry and the Malaysian business delegation for their
joint effort in organising this luncheon. This meeting
will hopefully lead to the forging of new relationship
between our business communities, and lend substance to
our bilateral relations.
2. Malaysia has followed the economic transition in
Mongolia with great interest. We welcome the steps taken
by the Mongolian Government to bring its economy into the
mainstream of the world trading system. The move to
accede to the World Trade Organisation is further
testimony of this intent. We are encouraged to note that
Mongolia is attempting to expand its international
markets, by seeking trade relations with countries in the
Asian region, including Malaysia.
3. Currently, our economic relation is minimal.
Bilateral trade between Mongolia and Malaysia is about
0.32 percent of Mongolia's total world trade in 1996. From
US$172,000 in 1990, total trade between our two countries
had increased to US$2.715 million in 1996. Malaysia's
exports to Mongolia was US$1.58 million in 1996, while
imports amounted to US$1.14 million. The current level of
trade and the narrow range of products traded is far below
the potential for bilateral trade between Mongolia and
Malaysia. Nevertheless, from this humble beginning, we
can raise our economic relation to new levels.
4. The business communities of our two countries should
not be constrained by the notion that trade cannot
flourish between and among developing countries.
Malaysia's total trade with other developing countries
expanded by 13.6 percent to US$23.9 billion in 1995, while
Malaysia's total exports to the developing countries
increased by 8.3 percent to US$13.9 billion. As a group,
developing countries accounted for 17.7 percent of
Malaysia's total world exports in 1996. However, it would
be important to bear in mind that increasing the trade
among developing countries would not be that easy, for we
need the fundamental supporting framework, for business to
flourish.
5. In the market system, private enterprise must assume
a leading role in the economy. This gathering of the
private enterprises of our two countries is aimed at
providing an opportunity to establish links and to discuss
and map out strategies that are mutually beneficial. The
Malaysian business delegation present here are keen to
explore the possibilities of working together with their
Mongolian counterparts. This meeting in Ulaanbataar, I
believe, will build upon the initial ties established
during earlier visits by the Mongolian business delegation
in July 1995 and in March 1996.
6. I note that business ventures between Mongolians and
Malaysians are already in place here in this country.
Mongolia's MM Holding Ltd has a number of joint-venture
projects with Malaysia's Sriwani Holdings Berhad through
the formation of MM Sriwani Co Ltd, for the construction
and management of duty-free complexes. Malaysian Mining
Corporation (MMC) through a joint-venture arrangement with
Mongolian partners, will undertake the Egiin Hydro
Electric Project. Agreements between Monsonic Group of
Mongolia and Optastar Sdn Bhd of Malaysia will lead to the
supply of Malaysian refined sugar and rice to Monsonic
Group of Mongolia.
7. Mongolia and Malaysia have already put in place the
necessary framework to enhance business and trade, in the
form of the `Investment Guarantee Agreement' and
`Avoidance of Double Taxation Agreement' which were signed
in Kuala Lumpur in July 1995. These agreements represent
the sincerity and determination of our two countries to
promote bilateral and economic relations. Now it is the
turn of the private sector of both Mongolia and Malaysia,
to go beyond these agreements and to turn the aspirations
of our two governments into reality. I have been told
that since 1992, nineteen officials from Mongolia have
received training in various fields in Malaysia. I hope
these officials have benefitted from their short stay in
Malaysia.
8. Malaysia advocates greater South-South cooperation
through trade among developing countries. It is our
belief that members of the South countries should work
together to improve their economic and social conditions
through mutually beneficial trade and economic activities.
On Malaysia's part, we actively encourage our private
sector to trade and invest in other South countries.
Malaysian ventures in the countries of the South must
serve both the host country's interests as well as their
own interests. Malaysian companies have responded to this
call and it is in that spirit that we are all here today,
in Mongolia. Malaysian companies have ventured worldwide
in several sectors such as banking, construction and
property development, telecommunications, power
generation, road and highway development, mining and
tourism related projects. Malaysia's private sector is
ready to cooperate with Mongolian enterprises in these
sectors and explore the possibility of going into value-
added manufacturing activities, utilising locally
available resources.
9. As for Malaysia, the change in our economic profile
did not happen overnight. Major changes to the mindset of
the people had to be made. Malaysia realised that an
agrarian-based economy was somewhat uncertain and
unpredictable in the light of fluctuating commodity
prices, and changing weather condition. After shifting
the focus of the economy from being agrarian-based, which
was the mainstay of our economy for decades, Malaysia
ventured into industrialisation. This has brought about a
complete turnaround of Malaysia's national economy.
Manufactured products in the early 80's represented 22.4
percent of the total exports. Today it is 80 percent,
reflecting the government's and the people's commitment to
achieving full industrialisation by the year 2020.
10. Malaysia is also promoting `smart partnership', a
concept in which every partner wins. We believe that if
we try to get everything for ourselves, at the end, we
will get nothing. We are promoting the concept of `smart
partnership' based from the lesson we learnt from our
past.
11. Finally, I would like to reiterate that our two
governments can only lead the way. The private sectors of
both Mongolia and Malaysia need to be proactive to follow
up leads through further discussions, exchange of visits
and focused networking.
12. I am confident that many more ventures, in line with
the principles of `smart partnership', will materialise as
a result of this meeting.
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