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Oleh/By : DATO SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : SINGAPORE
Tarikh/Date : 10-09-2001
Tajuk/Title : THE ASEAN ACHIEVEMENT
MILLENNIUM AWARD
Versi : ENGLISH
Penyampai : PM
I am greatly honoured to have been selected to
receive this ASEAN Millennium Award. The conferring of
such an award is also an added honour to Malaysia. On
behalf of my country, allow me to express my deepest
appreciation to the ASEAN Business Forum, in particular
to its Board of Directors, for choosing me for this
award. Malaysia is as much aware of the honour as it
is aware of the responsibilities given the current
pressing challenges confronting ASEAN. The consensus
around the ASEAN Business Forum reflects confidence in
ASEAN but equally it also reflects legitimate
expectations on the part of other members of ASEAN.
2. I am grateful for this opportunity to share with
you some thoughts about ASEAN, to think aloud, as it
were, about this Association of 10 nations in the South
East Asian region. Looking back on the history of
ASEAN, its creation was premised upon the need for a
forum to discuss largely the problems of managing
relations between newly independent nations whose
historical backgrounds were rather different and who
were almost forcibly kept apart. The early leaders of
the ASEAN countries were strangers to each other, as
were the people. Indeed they were suspicious of each
other, aggravated by territorial claims and differences
in their political perceptions.
3. Under such conditions the initial contacts were
mainly social of the getting-to-know-you kind. It was
only gradually that barriers were broken, first between
the leaders and then between the people. In time
however it became a habit for ASEAN leaders to meet
wherever international conferences take place. Then
business leaders and other groups got into the act.
Precedents and traditions were established as for
example the custom of new leaders of ASEAN countries
visiting the other leaders upon their assumption of
office.
4. The differences are still there but they have not
hindered cooperation on economic matters and even on
certain aspects of international politics. Much
remains to be done but there is little doubt that ASEAN
is a very real grouping that has benefited the members
in their dealings with each other and the rest of the
world.
5. Today, ASEAN has become an economic and political
force that has to be reckoned with in the region.
Since its inception 34 years ago, it has already
achieved a degree of cohesion, unity and capacity for
concerted action that has elicited quite respect and
emulation by many other regional organisations of
developing countries.
6. This is partly due, I believe, to the nature of
ASEAN's inception in which rare statesmanship played a
role and laid the ground for ASEAN's spirit of
solidarity and its sense of common purpose in the face
of pressures and challenges coming largely from outside
as the prosperity of ASEAN countries attracted the
greedy and the unscrupulous together with the serious
investors. Common interests also lead to cooperative
action for economic and social development, adherence
to the principle of peaceful settlement of disputes,
and scrupulous observation of the principle of non-
interference in the internal affairs of member states.
These attributes provide the bases for ASEAN's rapid
development, its attitudes, policies and the conduct of
its relations with other countries.
7. In essence, the nations of ASEAN, both
collectively and individually, have made significant
contributions to the peace and stability of the region
by their political pragmatism and economic dynamism.
While pursuing their national priorities, ASEAN
governments never fail to take into account the larger
interest of the region. For Malaysia the conduct of
its policies and relations with its ASEAN neighbours
fitted well with a policy premised on the belief that
prosperous neighbours will not only have less domestic
problems which impact on neighbours but, can actually
help prosper it by being a richer trading partner. It
therefore pays for neighbours to help prosper each
other.
8. ASEAN as a group can obviously contribute much
towards the growth and advancement of the region. The
ASEAN Vision 2020, provides an outward and forward
looking ASEAN, living in peace, stability and
prosperity, bonded together in partnership for dynamic
development and in a community of caring societies. To
achieve this vision, one must not forget that economic
development is the most important factor that will
contribute to growth and stability. That is why in
ASEAN, we would like to see more economic integration
put in place, and it is for this reason that we have
conceived the idea of the ASEAN Free Trade Area (AFTA).
9. As can be seen, ASEAN is moving towards a truly
integrated economy. Trade barriers are coming down.
Tariffs on almost all products traded by ASEAN nations
will be down to five per cent or zero in just a few
short years. Even now products of companies with
related operations in two or more ASEAN countries may
flow freely within the region with tariffs of at most
five per cent or none at all.
10. Trade among ASEAN countries is being made easier
with the harmonisation of standards and procedures.
Infrastructure linkages including transport, energy and
telecommunications are being expanded and strengthened.
Together we are projecting the ASEAN region as a very
attractive place to invest and to do business.
11. In this regard, under the ASEAN Investment Area
(AIA), which was adopted by ASEAN, foreign investors
could take advantage of privileges offered under the
AIA. ASEAN countries are also opening up and giving
national treatment to other ASEAN investors including
joint ventures between ASEAN and foreign companies.
12. There is also the ASEAN Industrial Cooperation
(AICO) scheme, which gives AFTA treatment to products
traded within ASEAN by companies operating in two or
more ASEAN countries.
13. Given the rapid expansion of electronic commerce
in the global economy and recognising that our future
competitiveness depends on our ability to develop and
use information technology, ASEAN is now focussing on
the application of information and communication
technology to enhance trade. ASEAN is now developing
an action plan on the necessary infrastructure to
promote e-ASEAN.
14. I personally wish to reemphasise the importance of
the physical linkages between ASEAN countries so as to
further facilitate ASEAN economic integration. At the
ASEAN Informal Summit in Singapore last year, Malaysia
proposed the Singapore-Kunming Rail Link (SKRL)
project, which our own experience in railways shows
that it can be a powerful catalyst for economic
development. There were also proposals for the ASEAN
highway network, the ASEAN Power Grid and the ASEAN Gas
Grid. All these present enormous opportunities for
investment and would stimulate other forms of
investment and economic activities.
15. In looking forward towards the free flow of
products and services in ASEAN, we must not forget the
financial crisis that hit our region four years ago.
The precipitators of the crisis were the unscrupulous
rogue currency traders. They saw nothing other than
profits for themselves. The serious social, economic
and political turmoil they created in their trail is of
no concern to them. The financial crisis of 1997
halted the spectacular growth of ASEAN's economy. FDI
inflow fell from 28.1 billion U.S. Dollars in 1997 to
16.1 billion U.S. Dollars in 1999. Per capita income of
ASEAN which stood at 1384 U.S. Dollars in 1997 was
reduced to 930 U.S. Dollars in 1998, a drop of 33 per
cent. Many people were left without jobs as companies
could no longer bear the rising costs of doing
business. Those people who were laid-off had to feed
their families and matters were made worse when the IMF
insisted that subsidies for food, cooking oil and fuel
must be stopped. The result was predictable. The
people turned violent and this only contributed towards
even greater deterioration of the economy, to making
recovery even more difficult. Still the blame is on
the Governments, on their corruption and lack of
transparency etc. That these same Governments were the
ones which had so miraculously developed their
countries and made them economic tigers was forgotten
or ignored. The rogue currency traders and the
international financial system, the IMF and the World
Bank were regarded as blameless.
16. The Asian financial crisis is not over yet. It
will not be over until the International Financial
System is changed and those who abused it are curbed.
For a time there was talk of a new international
financial architecture. There were a few meetings of
selected nations but the whole thing has fizzled out.
It looks like nothing is going to change.
17. But now globalisation is being promoted
aggressively. We have had a fortaste of globalisation
when the currency traders devalued our currencies and
precipitated a financial crisis of unprecedented
severity. Are we going to accept globalisation
without question, a globalisation conceived and
interpreted by the rich countries, which is manifestly
in their interest?
18. Nowhere should the ASEAN countries be more united
than in the negotiations for a new world economic order
as will happen at the WTO. The first round of the
negotiation had resulted in various undertakings by the
proponents, which to date have not been fulfilled. We
have not seen the flow of capital in the direction of
developing countries, which we are told would happen.
Indeed we have seen just the opposite, a massive
outflow of capital from our countries, which has almost
completely destroyed our economies. Now a new round is
proposed in which non-trade issues, such as labour
standards, human rights, democracy, child labour are to
be linked and made conditions for trade and
investments.
19. These issues are important and they should be
promoted but there are other forums for discussing them
and making them conditions for trade and investments
will retard the growth of many developing countries.
The rich countries had taken more than a century to
reach their present status of social, economic and
political sophistication. It is unrealistic to expect
developing countries to achieve such levels of
sophistication overnight. Linking these issues with
trade and investments will surely impose tremendous
strains on poor developing countries. Instead of their
sharing in the wealth they are likely to become poorer
and poorer, while the rich wax ever richer.
20. But what is frightening is the preparation being
made by the rich to take full advantage of the WTO and
the free borderless market. We see the huge
corporations and banks of the rich already merging and
acquiring each other so that they become colossal and
unbeatable. Only a few players will be left in every
major field. Banks, manufacturing industries,
transport corporations etc are now being consolidated
through mergers and acquisitions so that the small and
the weak would just not be able to compete and survive.
21. Perhaps, this will be good for efficiency,
although I doubt it. But when business corporations
become richer and bigger than most nation states, they
will want to dictate to the whole world so as to cater
to their unlimited greed. Nations will cease to be
independent. They will become just units for the
servicing of the great banks and corporations.
22. You may notice that at a time when the world is
insisting on the rule of law by Governments, there is a
demand that Governments should deregulate trade and
business. It does seem that Governments must be curbed
while big business should be allowed to do what it
likes. The market is supposed to regulate itself,
which is nonsense of course because the market is not
in the business of promoting good social and political
behaviour but in making as much profit as it can for
the players.
23. Clearly the trend in globalisation is towards
maximising the opportunities for the already rich to
make more and more money at the expense of the
sovereignty of countries and the social, political and
economic needs of the countries.
24. Some ASEAN countries may believe that they can
deal and even benefit from the present interpretation
of globalisation. And well they may. But it behoves
us to look closely at the proposals and the agenda of
the World Trade Organisation. We must know fully and
exactly what are the possibilities and dangers which
the new international economic regime will pose for us
before we agree to a new round of WTO talks. We want
to know exactly how have the rich countries complied
with the agreements reached during the first round.
25. If ASEAN is to be meaningful it must look after
the interest of all its members.
26. ASEAN countries must come together to negotiate
the demand for a new round of WTO talks. There must
first be consensus among ASEAN countries on the need to
review the agreements reached at the first WTO.
Following that a new agenda must be drawn up which must
exclude extraneous matters. The effect on all
countries, rich and poor must be fully understood and
assessed before any support can be given to the
formulation of a new international trade and investment
regime.
27. Since countries are at different stages of
development it is unrealistic to insist that everyone
must adopt standard policies and practices. The poor
must be given a lot of leeway, protection and time.
The rich are not going to be destroyed if there is some
delay and some regulations in the implementation of
standard practices. We have already seen how one
medicine to cure all financial ills have precipitated
serious widespread and intractable crisis in the Asian
countries. We do not want to see a continuous crisis
for the whole world arising from an ill-considered
world trade regime.
28. ASEAN is credible and relatively strong. It can
play a role to bring about a more equitable world
economic order. It must not think of its own interest
only. Certainly it must not allow the interest of an
individual country to supercede that of the group and
the region.
29. The world is still very primitive. In terms of
might is right our civilisation has not progressed
beyond the stone age. Who can kill more people
determines who can have his way. It is unconscionable
that today more than three-quarters of the world are
poor while a small number of people are as rich as
whole countries. Wealth must be more equitably
distributed.
30. The world is extremely rich in resources, human
and material. There is no reason why any country
should be poor. It is entirely possible for wealth to
be more fairly distributed. At present the globalised
world with its huge free market is benefiting only a
select few people, rich people with the capital to take
advantage of the borderless world.
31. It is common for the people who acquire wealth in
a country to give some back to the nations through
taxes on incomes and profits. By the same token people
who wax rich because the globalised borderless world
afforded them unlimited opportunities for profits
should return some of their profits to the world. The
money can be used to build needed infrastructure in the
poor countries, infrastructure which as we all know
will stimulate economic development. When the poor are
enriched, they will be more ready to buy the goods and
services of the rich.
32. Clearly the rich will not lose by paying for the
infrastructural development of the poor. They will get
back their money many times over. So the rich should
accept that as the rich citizens of a borderless world
they should pay a minute tax to be used to help the
poor.
33. So far ideas about the shape of things to come
have originated from the rich West. It is time that
the poorer nations of the world, ASEAN countries for
example come up with ideas, which can shape a more
equitable world. Taxing the rich international
businesses can be one such idea. I hope ASEAN
countries will dare to advocate this idea.
34. I thank you for the honour conferred on me and for
giving me this opportunity to give the views of a
universal recalcitrant.
Sumber : Pejabat Perdana Menteri
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