Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : LJUBLJANA, SLOVENIA
Tarikh/Date : 28/10/97
Tajuk/Title : THE SLOVENIA - MALAYSIA
BUSINESS MEETING
1. First of all I would like thank the organisers for
giving me the opportunity to address this gathering of
prominent members of the business community of Slovenia
and Malaysia.
2. I am delighted to be here today in Ljubljana and
wish to thank you for your presence and keen interest in
developing business relations with Malaysian
businessmen. Increased interaction between our two
countries, through visits and meetings such as this,
will certainly strengthen economic relations and boost
bilateral ties, hence bringing closer the people of
Slovenia and Malaysia.
3. Given the present trend of business globalisation,
countries must constantly seek new partnerships and
linkages to remain competitive. Traditional forms of
relationships among nations need to be reappraised and
that countries like Slovenia and Malaysia should take
the opportunity to forge mutually beneficial trade and
business alliances with new non-traditional partners
consistent with the realities of the current global
economic trends. Distance and history need not stand in
the way of us making new friends, and learning from the
experiences of others in different parts of the world.
4. The current level of bilateral trade between
Slovenia and Malaysia is still small. This is due to
the structure of trade which is concentrated on a narrow
range of products. Last year, for example, total trade
between our two countries amounted to US$11.6 million.
Malaysia's exports to Slovenia were valued at US$8.7
million, the bulk of which was crude rubber. Imports
from Slovenia amounted to US$2.9 million with major
import items comprising electricity meters, paper and
paperboard, cement and fabricated construction
materials.
5. Obviously, we need to identify and broaden the
range of products and services to increase trade between
our two countries. It is important that we identify
what can be sourced from Slovenia and what can be
supplied to Slovenia from Malaysia. In addition, we
also need to look into shipping and other means of
transportation, warehousing as well as the financing
arrangements which are mutually beneficial to us.
6. We in Malaysia are encouraged by the economic and
fiscal reforms undertaken by the government of Slovenia
since 1993. The pragmatic approaches of the on-going
economic recovery programme and incentive schemes for
foreign investments and joint ventures have already laid
the foundation for increased growth in the key sectors
of the economy. I am informed that the Slovenian
economy is amongst the strongest in this region. The
incentives and liberalisation policies, I am sure, will
continue to create greater confidence among foreign
investors, hence, paving the way for increased prospects
of economic growth in Slovenia.
7. For this reason, Malaysia recognises the importance
of having a significant tie with Slovenia. The
strategic location of Slovenia in the Central and
Eastern Europe can make it the centre of trade for the
region. Moreover, Slovenia's accession to Central
European Free Trade Association (CEFTA) which include
Poland, Slovakia, the Czech Republic and Hungary at the
beginning of last year opens up new markets.
8. Likewise, Slovenian businessmen should increase
their business presence in the Asian region by using
Malaysia as a springboard for production and
distribution of their products in the region. Being in
the centre of South East Asia, Malaysia is an ideal
location to serve as a gateway for Slovenia. With a
combined total population of 460 million people, the
huge ASEAN market and its liberal trading environment
will provide and offer tremendous business opportunities
for the Slovenian business community.
9. We in Malaysia have found that both foreign and
local investments have helped to transform our economy.
Such investments have created jobs, increased foreign
exchange and transfers of technology, expanded our
industrial base and provided linkages between the
agricultural and industrial sectors. It also spawned
the growth of small and medium-scale industries (SMIs).
10. Malaysia today is both a recipient of foreign
direct investment as well as an investor overseas. We
are therefore able to relate to the needs of both
parties. Accordingly, the necessary framework to enhance
trade and investment between our two countries are being
discussed during this visit. This is in the form of a
bilateral `Trade Agreement', `Agreement on the Promotion
and Protection of Investment', `Air Services Agreement',
`Agreement on Scientific and Technological Cooperation',
`Avoidance of Double Tax Agreement' and `Abolition of
Visa Requirements Agreement'. I am confident that, with
all the fundamental supporting framework put in place,
we can raise our economic relation to new levels.
11. For countries like Malaysia, an open and liberal
multilateral trading system is essential in order to
continue developing and progressing. Market access is,
therefore, very crucial for Malaysia and it must not be
constrained by the trade impediments such as non-tariff
barriers or complicated bureaucratic procedures. In
this regard, I am happy to note that Slovenia's foreign
trade regime have been relaxed since 1993 and that the
Government ratified its participation in the World Trade
Organisation (WTO) in 1995.
12. On the investment front, to date, I note that only
a handful of Malaysian companies have established their
presence in Slovenia. I therefore, would like to take
this opportunity to reiterate Malaysia's keen interest
and readiness to participate in various sectors of
development in this country. Malaysian entrepreneurs
who are present here today would like to explore the
possibilities of investment and joint cooperation in
areas such as construction of infrastructure facilities,
property development and manufacturing. Other
possibilities are in the services sector such as banking
and finance, telecommunication, transportation,
warehousing and tourism-related activities.
13. As Slovenia and Malaysia are countries with small
domestic markets, it is imperative that we adopt a
global outlook to achieve and sustain our economic
growth. Therefore, apart from exploring the economic
potential in each other's country, the Slovenian and
Malaysian private sectors should explore opportunities
for cooperation in third countries.
14. The performance of the Malaysian economy has been
mainly a result of our industrialisation drive, with an
unprecedented growth in the output of the manufacturing
sector, particularly in the last ten years. Having
outgrown the era of labour intensive industries, our
emphasis is now on the development of capital intensive
and technologically sophisticated industries. There
will also be a growing emphasis on productivity and
quality-driven growth through skills upgrading, capital
deepening and research and development to increase
Malaysia's competitiveness.
15. Consistent with the thrust of our current
industrial policy, a nationwide information technology
or IT agenda is being implemented. This is to
accelerate the wider usage of IT in the various sectors
of the economy. A significant development in this
effort is the Multimedia Super Corridor (MSC), a 15 km
by 50 km zone extending South from Malaysia's present
capital Kuala Lumpur. The infrastructure, incentives
and Government support will make the MSC as the prefect
test bed for high-tech companies wanting to create,
distribute and employ multimedia products and services.
Thus far, we have managed to attract the interest and
support of some of the world's biggest multimedia
corporations.
16. With the vision that we have set for Malaysia and
the various development projects that we have put in
place, opportunities both in trade and investment abound
for foreign business enterprises. The Government, on
its part, will continue to offer a stable, strong and
business-friendly environment, consistent policies, a
forward-looking, dynamic and innovative economic regime
to help investors succeed without undue constraints.
17. I understand that you have just concluded the
business meetings with your counterparts from Malaysia.
It is my sincere hope that the business ventures agreed
to between Malaysian and Slovenian companies during the
course of the business meetings would serve as a model
of good and lasting cooperation between two developing
countries.
18. In this regard, I urge the Malaysian businessmen
doing business in Slovenia to be good corporate
citizens, to respect local sensitivities and aspiration
and to go for long term benefits than short term gains.
I am certain that the Slovenian Government will continue
to create the necessary enabling environment to make
this country an attractive place to do business.
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