Oleh/By : DATO SERI DR MAHATHIR BIN MOHAMAD
Tempat/Venue : PWTC, KUALA LUMPUR
Tarikh/Date : 07-11-2001
Tajuk/Title : THE 7TH ASCOPE CONFERENCE
AND EXHIBITION
Versi : ENGLISH
Penyampai : PM
"SURVIVING IN THE NEW ECONOMY"
1. Thirty years is a mere blink of the eye in the
history, but for ASEAN it is a lifetime. Still ASEAN's
achievements in this short period can be matched by few
regional organisations. To understand ASEAN, it is
important for us to look back and reflect on ASEAN's
past struggles, triumphs and tribulations. For more
than a century, the countries of South East Asia were
colonised and subservient. They were not their own
masters and they could do nothing for themselves.
Theirs was to produce the raw materials cheaply for the
industries of their colonial masters thousands of miles
away. But at last they gained their independence.
Unable to cope with this new-found freedom they
confronted each other. But very quickly wise counsel
prevailed and the leaders founded ASEAN as an
organisation of neighbours wishing to live in peace
with each other. ASEAN was not an economic grouping at
first but inevitably it became one. Today ASEAN
ignores the political differences between them in the
greater interest of economic development through
cooperation.
2. We are not yet a union as the European countries are
but we have achieved a degree of cohesion seldom
experienced by other regional organisation. If not for
the currency crisis of 1997 - 98, we could have become an
association of economic tigers.
3. We competed with each other of course but we also
cooperated and we learnt much from each other's
failures and success. We became a force in the
formulation of the relations between nations, the trade
and exchange of the world, the setting of standards and
practices for a better international community. We
were able to present the views of the developing
countries effectively and so protect their interests.
4. It is ASEAN that gives impetus to the regional
infrastructure linkages that support and attract
investments.The road that ASEAN countries have travelled
spans areas involving energy, trade, security, education,
training, formulation of best practices and energy
infrastructure.
5. Cooperation in trade and regional security has
been the cornerstone of ASEAN's success. As we forge
ahead into a more uncertain world, the intrinsic value
of such solidarity will be of paramount importance, in
order to enable us to deal with other countries and
regions from a position of strength. More importantly,
such solidarity has resulted in the provision of
effective social and economic safety nets in which
ASEAN as an entity can depend on.
6. In keeping with developments in the ICT front, we
are also positioning the region to be e-ready. The
e-ASEAN platform will be the vehicle for ASEAN countries
to promote and facilitate ICT development in the region.
A two-prong approach is adopted, firstly, investments in
ICT will be the new engine for driving economic growth
and secondly increasing ICT infrastructure will provide
the means for ASEAN people to progress through better
education, knowledge and skills.
7. A great deal of our success has been due to trade
and regional cooperation. Greater consensus and a
policy of non-interference in the internal affairs of
member countries has enabled the region to survive the
severe test of strained relationships. Instead of
interfering in the domestic politics of member
countries, we propound the principle of "prosper thy
neighbour" to ensure that all the member countries are
helped to achieve prosperity through the right kind of
economic policy and management.
8. Among the steps taken to build up the economic
cooperation of the member state is the agreement to
form an ASEAN Free Trade Area. Industrialisation of a
country depends much on the size and purchasing power
of the domestic market. On the other hand economies of
scale contribute much to the viability of an industry,
especially the big capital-intensive industries. By
combining the markets of the countries of Southeast
Asia, a good size market can be created.
Industrialisation of the region can then be more
feasible. However, there must be some understanding on
the distribution of the industries. If all the
countries want the same industries then there will be
only small national markets for each, not regional
markets. The economic community would then fail.
9. Another problem is the hijacking of the market by
foreign interest. Seeing the potential of the much
enlarged markets, foreign corporations would bid to
monopolise it by setting up so-called "national
industries" which are owned by them, while the locals
will only work for them with little ownership and
technology transfer. The products would be cheaper and
the quality world class but the small local companies
would be locked out and indigenous industrial
capacities will not be enhanced.
10. We would be no better off than when we were the raw
material producing colonies. The only difference is that
we are now the low-cost assemblers of foreign products.
Of course we need and we want foreign direct investments
but they must be for increasing our exports to other
regions and where possible they should give a fair share
in the industry to the locals if they are after the
lucrative ASEAN regional markets.
11. Globalisation is being pushed aggressively and we
should accept that globalisation is the future of this
world. However we need to modify the interpretation of
globalisation. Presently globalisation is only about free
capital flows in and out of countries, about market
opening and abolition of discrimination in favour of
national companies. In preparation for globalisation the
giant banks and industries of the rich are merging and
acquiring each other in order to become huge and
unbeatable. The tiny local banks and industries would
stand no chance of competing with these giants. Once the
borders are down these super big foreign giants would
move in to take over the local financial and industrial
sectors of the small countries.
12. Maybe it is good for business and even good for the
consumers. But it will not be for long. National
interests such as the well-being of local people, their
level of skills, their participation and independence in
business and occupation will not only be neglected but
may even be restricted. Even governments may lose the
power to determine policies and to exercise their powers.
They will have to cater to the demands and even take
instructions from the powerful foreign banks and
companies, which control the economy completely.
13. The ASEAN countries have already experienced one
manifestation of globalisation, namely the manipulation
of their currencies by international currency traders
backed by such institutions as the IMF and the World
Bank. Suddenly the East Asian economic tigers became
impoverished as their money was devalued through short
selling. Not only were they forced to borrow from the IMF
but they had to submit the management of their countries'
finances and economy to the IMF.
14. Whether by design or not the advice given by the IMF
resulted in worsening the economies of these countries.
Their businesses began to fail. They were then forced to
allow in foreign corporations and financial manipulators
who bought the near-bankrupt banks and businesses at
fire-sale prices.
15. Despite the obvious failures of the International
Financial Regime and the Bretton Woods Institutions like
the IMF and the World Bank, no attempt is made to
restructure the system. Currencies of developing
countries are still exposed to devaluation by the
currency traders. Businesses and investments have still
to face the uncertainties of fluctuating currency
exchange rates and bear the costs of hedging.
16. Globalisation may be inevitable but there is no
reason why globalisation should be solely for the purpose
of free flows of capital. The rate of globalisation can
be staggered so that the developing countries need not
give up completely the protection of their industries yet
should be able to access the market of the rich so as to
grow their own economies. This is not as unfair as it
sounds. Quid pro quo and perfect reciprocity should be
between equals. When the players are of unequal strength
or capacity, handicap should be allowed the weak in order
to compensate for their weakness.
17. Today we see the rich countries taking unilateral
action in order to protect their industries. Not only do
they impose countervailing duties when there is suspicion
of dumping but they now restrict imports simply because
their own industries are hurt by cheap imports. This is a
retrogressive step as far as globalisation is concerned
but the rich are apparently privileged to disregard even
agreed convention. If the rich can do this to protect
themselves surely the poor should be given the right to
protect their puny businesses.
18. In a globalised world should there be only giant
banks and giant industries and businesses? We are fast
moving into an impersonal society. Big organisations may
be efficient and cost-effective, although I don't think
this is necessarily so, but big organisations cannot have
personal relations. In the e-world, relations between
people are already impersonal enough. If added to this we
have to deal with people at the fringes who cannot
possibly have a full commitment to the business being
done, we are going to lose all the friendship and
personal attention of business people we deal with in our
daily life.
19. Small businesses have not really stifled our growth.
If they had we would not be where we are today. Little
one-branch banks, Mama and Papa provision shops and
restaurants, even back-yard industries have contributed
towards our economic growth. We could interact with them
personally, bring our problems to them and know that they
value your customs.
20. We should have our big, efficient businesses of
course but we must ensure that the small ones survive
also. If we have to protect them then we should. The
globalised world should not be so uniform that no matter
where we are in the world, our hotels, restaurants, TV
programmes, newspapers and magazines, motor vehicles,
banks, indeed everything would be exactly the same.
Variety is the spice of life. The spice is fast
disappearing as we stay in Hilton Hotels, eat McDonald's
hamburger, drive in a Ford car, bank with Citibank and
buy our household needs from Carrefour. Already we cannot
tell where we are once we enter the lobby of our hotel.
They all look the same.
21. Brands have become so important that new makes
especially from developing countries find difficulty in
entering an established market. The Italians monopolise
the brand names so much so that Asians have to invent
Italian-sounding names for their products. A developing
country can never hope to market its own vernacular
brand. And so we are uncompetitive even before we start.
Since we must allow foreign brands to enter our markets,
our unprotected brand cannot make headway even in our own
country.
22. ASEAN countries must learn to be competitive of
course. But it is not so easy to play the game of
catching up with established people from the developed
world. We cannot even depend on producing and exporting
raw materials because the terms of trade are not going to
favour us. Manufactured imports will always be
appreciating in price much faster than the price of our
raw materials.
23. So how do we survive in the new economy? We
survive by staying together, by defending our market
and by extracting the best terms from our dealings with
the developed countries. Alone we will fall, but
together we stand a chance. Each of us will be offered
attractive propositions but we will lose out if we
break rank.
24. ASEAN has a market of half a billion people.
No doubt their purchasing power is low but we can build
that up by helping each other to develop. With this
market we can leverage a trade off so that access would
be on our terms, on terms that will give us some
substantial advantage.
25. The ASEAN market and the development of our economic
wealth must be done by ourselves. Trade between ASEAN
countries is big but it can be much bigger. We must use
our closeness to advantage by maximising the sourcing of
our needs from within ASEAN where possible. We must build
up our industries based on the larger ASEAN market rather
than on national markets. We have to agree on a
distribution of industries by siting certain industries
in specific countries so that competition would be minimal
though not to the extent of a monopoly.
26. The ASEAN electrical and gas grid must be made a
reality as quickly as possible. The railway and road
networks should also be linked. Travel between ASEAN
countries should be facilitated by using a common smart
card for travelling or border crossing.
27. The various growth triangles must be seriously
developed so as to take advantage of each other's
particular strength, i.e. manpower, natural resources,
capital and technology.
28. There are clearly a host of things that the ASEAN
countries can do in order to survive in the new economy.
Certainly in the field of energy as have been pointed out,
the power and gas grid linking the ASEAN countries can
help us to benefit from easy access to power. And power,
cheap power, is essential to make us competitive. To
survive in the new economy we have to seek and develop
every competitive advantage that each one and together
we have.
29. Through forums such as the ASCOPE Conference and
Exhibition it is my hope that issues on energy planning
will receive due attention and the focus that it warrants.
30. I wish you a successful and meaningful conference.
Sumber : Pejabat Perdana Menteri
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