Oleh/By : DATO' SERI DR.
MAHATHIR BIN MOHAMAD
Tempat/Venue : MOZAMBIQUE
Tarikh/Date : 30/07/98
Tajuk/Title : THE BUSINESS LUNCHEON AND DIALOGUE
I wish to extend my sincere gratitude to the
Government and people of the Republic of Mozambique for
the warm welcome and generous hospitality that has been
accorded to members of my delegation and I. I am
delighted to be here and hope this visit will further
strengthen economic and bilateral relations, bringing the
peoples of our two countries closer together.
2. Malaysia and Mozambique are both members of the
Commonwealth. We both subscribe to the free market
system and somehow we both share a common historical
background. Malaysia and Mozambique both came under the
influence of the Portuguese way back in the 15th century.
The Portuguese conquered Malacca, an ancient Malay empire
on the pretext of searching for spices. And it was said
that gold had attracted the Portuguese to Mozambique. Our
wealth may have been the primary cause but the extension
of European politics also played a considerable role.
3. This background gives us a degree of commonality.
Malaysia has always advocated greater South-South
cooperation through trade among developing countries
wishing to be more self-reliant. We believe that the
countries of the South can benefit from such cooperation
as much as the North has benefited from their exploitation
of the South.
4. Malaysia and Mozambique have the potential to develop
our bilateral trade and economic relations, particularly
in the area of agriculture, power generation,
infrastructure, mining and exploration of natural
resources. It is however crucial for the public sectors
of both countries to assist our private sectors to
increase bilateral economic relations.
5. Political and economic relations between our two
countries have been premised on mutual understanding and
respect. Mozambique and Malaysia have signed only one
agreement, the Bilateral Payment Arrangement signed on
April 27, 1991. However another two agreements are being
proposed namely the Double Taxation Agreement (DTA) and
the Investment Guarantee Act (IGA). I sincerely hope that
both agreements will be concluded soon to further
facilitate trade and investment between the two countries.
6. Similarly, our technical cooperation had started on a
modest scale. As of 1997, 14 Mozambican officials had
undergone short-term training in the field of public
administration, human resource development, leadership and
organisational management, and English for International
Communication.
7. On the economic front, it is observed that bilateral
trade between Mozambique and Malaysia needs to be further
improved. Presently, bilateral trade between our two
countries is on the decline. While in 1995 it amounted
to US$4.07 million, the figure declined to US$2.96
million in 1996 and even lower to US$1.74 million in
1997.
8. In 1997, Malaysia's exports to Mozambique totalled
US$1.73 million, a decline of 0.8 percent as compared to
the export value of US$2.72 million recorded in 1996.
Malaysia's major export to Mozambique in 1997 were
vegetable oils and fats (63.8 percent); natural rubber and
natural gums (28.7 percent). For the first five months of
1998, export to Mozambique amounted to US$1.6 million.
9. Malaysia imported US$5,037 from Mozambique in 1997,
compared to US$255,984 worth of goods recorded in 1996.
Malaysia's major imports items from Mozambique were fruits
and nuts (88.2 percent).
10. Malaysia is a multi-racial society. You will know
that such a society is prone to tensions and conflicts
between the ethnic groups. But Malaysia has been able to
manage race relations quite well. Except for one instance
we have been able to work with each other to develop our
country. We were growing at eight percent plus per annum
when we came under attack by the currency traders bent on
profiting from the wealth of the East Asian economies.
11. As a result more than one trillion dollars of
purchasing power has been lost, banks and businesses of
all kinds have been bankrupted, more than 30 million
workers have been made unemployed, food and medicine are
in short supply and growth has either been reversed or
stunted. For all these the Governments of the respective
countries have been blamed. It seems that they are not
open, not transparent, they are corrupt, given to crony-
capitalism and all sorts of misdemeanours. But these are
the same Governments which developed their economically
poor agrarian countries into economic tigers and dragons.
They were the miracle workers who converted their
countries into modern economic wonders, created so many
jobs that their workforce was fully employed and
millions of foreign workers had to be brought in,
doubled their per capita every few years, wiped out
poverty, built modern infrastructure etc. How is it that
suddenly, in the space of months, these Governments by the
same people with the same system and approach, could have
destroyed their economy and wrought economic and financial
turmoil?
12. As a result of this turmoil we have been financially
emasculated. We are now not only unable to venture
abroad, but even at home we are having difficulties in
trying to keep our enterprises alive. The harassment is
so great that we are often unable to attend to common
courtesies such as replying letters. But we are not about
to give up. Once we have overcome our present problems we
would like to venture abroad again, to participate in the
economic development of other countries of the South.
13. And so I have brought with me a number of prominent
members of the Malaysian business community. They
represent various sectors including transportation,
banking, property development, oil and gas, manufacturing
of electrical products, trading and services. They are
very keen to find potential partners and to look into the
possibility of working with Mozambicans in trade and
industry.
14. Although many of our businesses are facing problems,
there are quite a few which are still capable of investing
abroad. Among them are the bigger telecommunication and
power companies and the National Petroleum Corporation. I
am sure with the right Mozambican partners they will be
ready to move into areas where they have expertise.
15. Because of the economic problems at home we have to
export our way out of it. Malaysia produces world-class
goods and services which have been exported all over the
world. We would like to find markets in Mozambique for
products ranging from cranes for ports to household
appliances.
16. For all these we would like Mozambicans to make use
of our official representative and the embassy to check on
the Malaysians doing business here. We must admit that
there are also fly-by-night operators who have been giving
us a bad reputation.
17. I also urge Mozambique businessmen to take advantage
of the South Investment Technology and Data Exchange
Centre (SITTDEC) in Kuala Lumpur to obtain market
information for trade and investment in countries of the
South, particularly Malaysia. This exchange of
information is vital for Malaysians and Mozambicans to be
aware of the opportunities that exist in both countries.
18. In terms of investment, several Malaysian companies
have either invested in Mozambique or made known their
intention for investing. Southern Bank Berhad through its
subsidiary, Investimentos Association Limitada, a holding
company incorporated in Mozambique, has acquired interest
in Banco Austral, which is one of the leading banks in
Mozambique with 196 branches strategically located
throughout Mozambique. Visits such as this will provide
opportunity for businessmen from Malaysia and Mozambique
to deliberate on ventures seriously. Both parties should
also follow up and update their partners constantly to
minimise misunderstanding and to ensure successful working
relationships.
19. I urge the Malaysian business delegation doing
business in the Republic of Mozambique to take a longer
term view of their business interests. I am certain that
the authorities in the Republic of Mozambique will
continue to provide the necessary enabling environment to
encourage and facilitate trade and investment with
Mozambican businesses and investors.
20. I am confident that this visit would open broader
perspective to increase trade and economic relations
between our two countries.
21. May I once again, on behalf of the Malaysian
delegation, reiterate my sincere appreciation and
gratitude for your warm welcome and generous hospitality.
I hope that more trade as well as economic ventures
between our two countries will follow.
|
|