Oleh/By : DATO' SERI DR.
MAHATHIR BIN MOHAMAD
Tempat/Venue : THE AWANA PORTO MALAI,
LANGKAWI, KEDAH
Tarikh/Date : 02/12/99
Tajuk/Title : THE LIMA 1999 AEROSPACE & MARITIME
INTERNATIONAL CONFERENCES
"Moving towards Greater Security and Prosperity
into the New 21st Century"
Exactly 31 days from today we will be entering a
much awaited year, a year that marks the beginning of a
new century and millennium. Malaysia for one, has
prepared itself and is ready to welcome it. This is
made possible through the underlying guidelines of
Vision 2020 a vision to be a fully developed country by
that year. Indeed, to be a fully developed country has
always been our dream, a developed country in our own
mould and perception. But living in a world where
mutual dependence is necessary, Malaysia cannot afford
to ignore its neighbours, neighbours which have given
undivided support in times of need, and neighbours who
share happiness and glory in times of achievement.
Therefore, mutual cooperative partnerships to enhance
shared interests and well-being has always been on our
agenda.
2. As a close-knit community with amazingly similar
cultures, values and thoughts, we in Southeast Asia are
well aware that happenings in a neighbouring country
will affect us and the rest of the region. Taking this
into account and realising how important it is to
secure and maintain peace in this region, Malaysia has
undertaken to participate in peace keeping in East
Timor which, whether we or they like it or not, will be
our neighbour. It is vital to note that the peace-
keeping force is not intended to interfere in another
country's domestic or foreign affairs or to show one's
military might; the intention is to bring about
sustainable peace and harmony. Any attempt made by any
country to demonstrate its military might by actively
supporting or undermining the political or economic
well-being of another nation in the region is something
to be deplored.
3. In view of the critical importance of keeping
peace and harmony in this area, I would like to call
for a refined regional security structure that would
involve every nation in Asia. A clear and definite
security structure can help save tremendous resources,
minimising unnecessary duplication and at the same time
fostering closer cooperation among the nations. China
and Japan can together help ensure peace and stability
in this region, something that will not only reduce
wasteful expenditure on arms but will enhance intra-
regional trade and investments.
4. I believe it would help if research into peace
keeping needs should focus not on the possibility of
military conflicts between nations but on keeping the
sea-lanes and air space free of piracy and hijackings,
on better search and rescue equipment and drills, on
cross-border fire fighting, on how to rescue the
innocent hostages of hijackings and piracy, on making
ships manned by small crews safe from boarding by
unauthorised people, and on many other things which can
make transportation of goods and passengers more safe.
We already have enough sophistication in the weapons of
destruction to wipe out millions and destroy this
planet. What we need now is sophistication in the
equipment which can make life safe for everyone,
especially when they travel.
5. 'Security' takes on many forms. Governments have
the responsibility to provide security and the well-
being of all its citizens. Within the Asian region,
one cannot separate security from economics. We know
for certain that as developing countries, our security
foundation is, in many ways, built upon economic
prosperity. With this concept in mind, the Malaysian
Government has adopted several measures that are
considered extreme and unreasonable to some quarters in
our effort to overcome economic problems caused by the
deliberate devaluation of our currency, the Ringgit in
1997. When a currency is devalued it impoverishes the
affected country and people. We need more of the local
currency to purchase goods from abroad. Since we
cannot conjure up the money needed, we have to reduce
or forego certain imports. Certainly our purchases of
defence equipment and other foreign manufactured
products and even foods have to be reduced. This must
affect our foreign suppliers and must reduce world
trade.
6. Frankly we do not see anything good about currency
devaluation brought about by trade in currency. When
they sell the currency traders are supposed to be
saving their money from the possibility of devaluation
due to an economic collapse in a country. But by
selling off the currency they are supposed to be
holding, they not only precipitate the collapse but
actually ensured that it would happen to the degree
they plan. In fact they are not holding any currency
which is in danger of losing its value. They merely
borrow the currency from the banks when they want to
sell. The banks do not have this currency either.
There was never such money issued by the Central Banks.
If such an amount of currency is issued, it would
certainly depreciate in value merely because there is
too much of it in circulation. The money that the
banks have which they lend to the traders are basically
fictitious, created by rather shadowy and tricky
banking practices. Yet the effect of this non-money
being traded can be disastrous for the countries
concerned and for the world generally. Against the
amount of wealth destroyed by currency trading, the
profit made by currency traders is actually minute --
although it may run into billions of dollars and is
worthwhile for the currency traders.
7. Malaysia believes that a steady exchange rate is
good for business. There will be no need to hedge --
an unnecessary cost which only benefits the hedge
funds. Certainly there will not be currency and
economic turmoil caused by unpredictable, rapid and
steep falls in the value of currencies. And because
international trade would be facilitated when exchange
rates are steady, exporters from every country would
benefit. The demand for such things as aircrafts,
ships, manufactured goods, defence equipment and even
services would be high, benefiting the manufacturers
and suppliers worldwide.
8. Malaysia had urged the IMF to take steps to
control currency trading. The world can actually do
without currency trading. Just because in the context
of free trade and globalisation it can be done does not
mean we should allow it to be done. There are many
things we can do in this world but we are not allowed
to do because they harm others. Unfortunately the IMF
is not inclined to do anything that will deprive the
currency traders of their opportunities to make huge
profits, or even to render it transparent. Mr
Camdessus promised us but he did nothing.
9. Malaysia therefore had no choice but to keep our
currency, the Ringgit, from getting into the hands of
the currency traders. We also imposed restrictions on
short-term speculative capital which had been
instrumental in the collapse of our stock market. The
restrictions on short-term capital flows have since
been lifted for all practical purposes.
10. The results of taking these measures have been
much better than we expected. Despite vociferous
condemnation by practically the whole world, our
selective controls have resulted in much faster
economic recovery than the other countries affected by
currency trading. While other countries in the region
have also recovered, it must be remembered that they
are burdened with huge debts with International
agencies which they now have to repay. Also the damage
to their economies caused by the standard IMF remedies
is severe and will take much time to be repaired.
11. Nevertheless the fact remains that the region as a
whole is now much more healthy economically than in
1997-1998. This means that we are in a position once
again to do business, to buy things and to trade
generally. We are not out of the woods yet. There is
still fear that the currency traders will be back. New
funds are already being set up by such greats as
Merriwether who apparently has not done enough damage
with the LTCM debacle.
12. Malaysia will not put down its guards until a new
international financial regime that is safe for
emerging economies is devised. We are not doing our 22
million people any harm, nor are we hurting our trading
partners through our controls. Indeed we are doing
ourselves and our partners and suppliers a lot of good.
The only people who have and will continue to lose out
are the unconscionable money traders and fly-by-night
investors. We really do not care for them.
13. Malaysia loves stability and predictability. We
think the business community likes them too. They will
be more sure of the success of their business. There
will be no sudden turns and twists in the policies,
laws and practices in the Malaysian environment. If at
all we will improve on them for the good of business.
14. We believe passionately in the partnership between
the private and the public sectors. We know that the
public sector can only do well if the private sector
does well. We tax their profits, if I may be so blunt.
Obviously if they make more profits we collect more.
We in Malaysia believe that the proper way to increase
revenue is to help the private sector make profits and
to increase their numbers. Raising taxes is one sure
way of reducing Government revenue. So you can expect
us to reduce taxes or even abolish them, if they will
help stimulate business.
15. Malaysia is a great place to do business. We hope
that the aerospace and maritime industries worldwide
will always consider Malaysia when they want to invest,
to relocate and to set up regional servicing,
manufacturing and operational centres. We will make
sure you will never regret your choice.
16. The ASEAN region is set to boom again. We will
ensure security for the region and we will prosper
each other. We have learnt a lot from the recent
currency and economic turmoil and we have all emerged
wiser and stronger. We believe we can help prosper not
only each other but also our partners from other parts
of the world.
17. As we move into the new century and the 3rd
Millennium let us resolve to cooperate for a better and
more prosperous world where wealth and the good things
in life are shared fairly by everyone everywhere.
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