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.