Oleh/By : DATO' SERI DR.
MAHATHIR BIN MOHAMAD
Tempat/Venue : PASIR GUDANG, JOHOR
Tarikh/Date : 29/09/98
Tajuk/Title : THE OFFICIAL OPENING OF OUTOKUMPU
COPPER PRODUCTS (M) SDN. BHD.
I would like to first and foremost thank H.E. Erkki
Huittinen, Ambassador of Finland to Malaysia, for
inviting me to officiate at the opening of Outokumpu
Copper Products (M) Sdn Bhd, here today. It is indeed a
pleasure for me to be here this morning for this
occasion.
2. The prolonged economic and financial crisis since
July 1997 have resulted in a contraction in the economies
of the region after a decade of rapid economic growth.
Malaysia was not spared from this turbulence which had
resulted in the contraction in almost all sectors of the
economy in the first two quarters of this year. Real GDP
growth shrank by 2.8 percent and 6.8 percent
respectively.
3. Against the continued adverse global developments,
Malaysia had no other alternative but to take radical
measures to put a stop to the basic causes of the
economic downturn i.e manipulative devaluation of the
currency and deliberate withdrawal of capital from the
share market. On 1st September 1998, the Malaysian
Government enforced exchange control laws which had been
ignored in the past and pegged the ringgit at RM3.80 to
US$1.00. However, I wish to assure you that exchange
control does not mean a stoppage of direct foreign
investment in productive activities. Indeed the fixed
exchange rate will facilitate the drawing up of
investment budgets and processing of goods for the
domestic and international markets. There will also be
no restriction in the repatriation of profits. The
business community, both foreign and local should
actually welcome this. Costly lodging is no longer
necessary.
4. The overriding objective of the exchange control
measures is to regain monetary independence and insulate
the domestic economy from global economic uncertainties
and manipulations. The changes are thus aimed at
containing speculation on the ringgit and minimising the
impact of the short-term capital inflows on the domestic
economy.
5. During a period of restructuring, there would
definitely be much apprehension among foreign investors.
I would like to take this opportunity to assure foreign
investors that the Government will continue to pursue pro-
business policies for long-term investors, as we have
always recognised the fact that foreign direct investment
can contribute significantly, not only to the development
of the manufacturing sector, but also to the Malaysian
economy as a whole. As such, Malaysia will continue to
promote foreign direct investment in the manufacturing
sector.
6. The presence of a large number of foreign
multinational corporations (MNCs) and their subsidiaries
in Malaysia is testimony to our success in providing a
conducive environment for them not only to establish
their manufacturing operations, but also to reinvest
their profits through expansion of their existing plants
and diversification into additional products. Foreign
direct investment inflows into the Malaysian
manufacturing sector today cuts across a broad spectrum
of industries, including the non-ferrous metal products
industry.
7. The non-ferrous metal products industry encompasses
a broad range of products. However, I understand that
the range of copper based products produced locally is
limited. Malaysia is still dependent on foreign supplies
for many copper based products. We therefore welcome
this new venture by Outokumpu as the project will assist
in the substitution of imports as well as result in
increased exports of copper based products from Malaysia.
This will assist in our current efforts to revitalise the
Malaysian economy.
8. This industry has continued to attract a fairly
significant amount of capital investment. In 1997, a
total of 14 projects were approved in this sector, with a
total capital investment of RM366.8 million. Foreign
direct investment (FDI) had accounted for RM54.3 million.
From January to August this year, three projects with a
total capital investment of RM257.4 million were
approved, of which FDI amounted to RM194 million.
9. Finnish investments in the Malaysian manufacturing
sector have been less significant in comparison to other
major capital and technology exporting countries in North
America, Europe and Asia. As at the end of August 1998,
23 projects involving Finnish investments amounting to
RM438.7 million had been approved in the Malaysian
manufacturing sector. I note that Outokumpu has invested
RM180 million in this copper plant here in Pasir Gudang,
Johor. I am therefore pleased to note that Outokumpu is
one of the major Finnish investors in the Malaysian
manufacturing sector.
10. I am also glad to note that Outokumpu's plant in
Malaysia is its second investment in Asia, after China.
As I mentioned earlier, the major contributing factor to
the presence of multinationals in Malaysia is the
conducive investment climate in this country. In this
context, I wish to quote the remarks made by Mr. Pentti
Jahi, who recently said, "Malaysia was chosen because of
its prime location as the hub of the Asian market, good
logistics, availability of sound technical expertise,
computer knowledge and complementary infrastructure".
This is a similar message to the one we have been
conveying to foreign investors all over the world. I
hope other Finnish companies will emulate the lead taken
by Outokumpu and view Malaysia favourably as a base for
their investments into this region.
11. I hope that your company will be able to increase
local value added and increase the use of local raw
materials, supplies and services to further enhance your
competitiveness. As we are continually developing our
technological base, I also hope that your company will be
able to effect some transfer of technological skills to
your Malaysian workforce.
12. I am optimistic that Outokumpu, in the near future,
will be encouraged to expand and diversify into new
product lines and incorporate other value-added
activities. This will be in consonance with the
Government's manufacturing goals under the Second
Industrial Master Plan (1996-2005).
13. On that note, it gives me great pleasure to
officially declare open Outokumpu Copper Products (M) Sdn
Bhd and to congratulate the management for the successful
completion and operation of the plant here in Pasir
Gudang, Johor.
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