Oleh/By : DATO' SERI DR. MAHATHIR MOHAMAD
Tempat/Venue : BERLIN, GERMANY
Tarikh/Date : 19-03-2002
Tajuk/Title : THE MEETING WITH THE CONFEDERATION
OF GERMAN INDUSTRIES AND
GERMAN-ASIA PACIFIC
BUSINESS ASSOCIATION
Versi : ENGLISH
Penyampai : PM
"INVESTMENT AND BUSINESS OPPORTUNITIES IN MALAYSIA"
I am indeed very pleased to be here with the
members of the Confederation of German Industries and
German-Asia Pacific Business Association, to share with
you the investment and business collaboration that the
business communities of Malaysia and Germany can
explore and forge.
2. Germany is well recognised for its leading
position as a major world industrial and trading
nation. While German investments are concentrated in
Europe and the USA, German companies have always
maintained an active presence in the Asia-Pacific, to
exploit the vast opportunities available in the region.
Malaysia is fortunate to be among the favoured
destinations for German business in the Asia-Pacific
region, and Germany is presently an important investor
and trading partner for Malaysia.
3. Germany is Malaysia's largest trading partner in
Europe. In the year 2001, Malaysia's total trade with
Germany was valued at US$4.8 billion. Exports from
Malaysia to Germany in 2001 totaled US$2.1 billion
while imports from Germany amounted to US$2.7 billion.
In fact, Germany overtook the Netherlands and the UK to
become Malaysia's largest trading partner within the EU
from 2000.
4. Promoting foreign direct investment (FDI) remains
an important strategy for maintaining Malaysia's
economic growth. In 2001, Malaysia attracted FDI of
US$4.8 billion into the manufacturing sector of which
Germany was our eighth largest foreign investor in
terms of approved investments in the manufacturing
sector. Between 1996 to 2001, a total of 122 projects
with German interest were approved with investments
totalling US$1.2 billion. Investments were both in new
projects as well as expansion and diversification of
existing facilities.
5. German investments in Malaysia now span over 3
decades with a steady increase from year to year.
There are at present over 300 companies with German
interests in the manufacturing and non-manufacturing
sectors indicating a large German presence and
participation in Malaysian economic activities.
6. As an open economy, Malaysia will always be
subject to the vagaries of the global business cycles.
Nonetheless, the Malaysian economy has managed to
register a real GDP growth of 0.4 percent in 2001. The
resilience of the Malaysian Economy is attributed to
the diversified structure of the economy. Although the
manufacturing sector, notably the electronics industry,
has been adversely affected by the downturn in global
electronic demand, growth in other sectors remained
positive. Malaysia places priority on maintaining
economic stability and predictability with low
inflation, which currently remains at 1.2 percent.
7. Malaysia continues to offer considerable
opportunities for German investors in the manufacturing
and manufacturing related support services sector.
Malaysia has built up a strong industrial base,
particularly in electronics. Malaysia is also
intensifying the transition towards higher technology
and higher value-added manufacturing. Malaysia seeks
to be the regional hub for investors in the
manufacturing and the supporting services sector.
8. Currently, Malaysia is promoting the development
of the automotive components industry to reduce the
dependence on imported components and to develop the
country as the base for the manufacture of automotive
components in the region. In 2001, exports of
automotive parts and components amounted to US$31.2
billion while imports totalled US$34.7 billion.
9. German companies, which are world-renowned for
their capabilities in the automotive industry, will be
most welcomed to invest in the automotive sector in
Malaysia, particularly the manufacture of specialty
parts and components such as automotive electronic
modules, navigational systems, engine management
systems, intelligent transport systems, safety and
security systems and environmental technologies. German
investors would be able to tap Malaysia's existing
competitive advantage in the manufacturing of
electronic components. German companies are among the
world leaders in these products and there is
considerable scope for more such German investments in
Malaysia. German companies advanced in technology can
also become strategic partners of Malaysia, and use the
country as a gateway to ASEAN. While it is noted that
a large part of Germany's foreign trade is with other
EU member countries, ASEAN with a population of over
500 million people, albeit with low incomes, is still a
market that should not be missed out.
10. German companies located in Malaysia will enjoy
the advantages of strategic access to the ASEAN market
where more than 90 percent of intra ASEAN tariffs have
been lowered to between 0 to 5 percent implemented
under the ASEAN Free Trade Area or (AFTA). ASEAN
member countries have also agreed to eliminate duties
on all products by 2010 for the original six member
countries and by 2015 for the other four new member
countries.
11. Within the ASEAN region Malaysia is on-track in
fulfilling its commitments to the common effective
preferential tariff (CEPT) scheme. Malaysia is already
competing actively within the AFTA environment with
96.6 percent of its products already in the CEPT
scheme, of which 91.7 percent are at 0 to 5 percent
tariff and 60.4 percent are at zero duty.
12. Malaysia believes in smart partnerships and the
concept of "Prosper Thy Neighbour". Unlike the
generally matured markets in Europe and the USA,
Malaysia and the ASEAN region will continue to offer
growing market potential and excellent export and
trading opportunities for German firms. So prosper
Malaysia and ASEAN and we will become a great market
for Europe. Our gain will be your gain.
13. As industry leaders who travel a lot you must be
aware of the growing popularity of Malaysia as an
attractive tourist destination in Asia. We have
invested a lot in developing the necessary
infrastructure and products for the tourism industry.
The increasing demand for Eco-tourism has made
sustainable development imperative for the tourism
industry in Malaysia. Malaysia has now become an
exciting, value for money destination for local and
international travelers. In 2001, Malaysia recorded
12.8 million tourists arrivals. However, only 70,401
of these tourists were from Germany. We would like to
see more tourists coming from Germany.
14. In addition, Malaysia also continues to be a very
popular destination for international conventions,
exhibitions and sporting events such as the formula 1
race. This is because Malaysia offers an attractive
range of convention and exhibition services and the
necessary infrastructure and sporting facilities.
15. In Malaysia, foreign technology is still much
needed and welcomed. This presents vast opportunities
and challenges for our German partners. There is much
that German companies can offer Malaysia in terms of
technology, know-how and capital. German I.T.
entrepreneurs can either sell or share their
technologies with us through FDI, partnerships and
joint ventures. But the cost of transfer of
technology is high. Reverse engineering is not
allowed. While countries like Malaysia, always
endeavour to enforce intellectual property rights laws
rigorously, the owners of intellectual property should
also try to reduce the cost of their property right, in
order not to deny access simply because of the
prohibitive cost.
16. Malaysia has sought to benefit from the many spin-
offs of recent advances in, communications, information
and technology (ICT). In the Multimedia Super
Corridor (MSC), an area specially dedicated to I.T.
industries and businesses, Malaysia is promoting a
culture of risk-taking and creativity where knowledge
workers can network and innovate. The MSC offers
German companies unique opportunities to develop ICT
businesses. Malaysia has put in place infrastructure,
policies and cyberlaws, which alongside Malaysia's
relatively lower cost would make the MSC a prime place
to do ICT business.
17. Malaysia aims, through the unique environment
provided by the MSC, to promote the development of next-
generation multimedia technologies. Towards this end,
Malaysia is continuing to renew efforts to develop a
cluster of collaborating world-class corporate R&D
centers, universities, research institutions and other
industry players. The MSC offers the platform for
German companies to develop new cutting-edge
technologies. A bio-valley within the corridor will be
devoted to the life sciences.
18. Although our target for the MSC is to have 500
companies of which 50 would be world class by 2003, we
now have 646 MSC companies with over 50 being world
class today. We have now to move our target to 700
companies.
19. The IT age has also brought with it the internet,
which can spawn various types of new businesses. This
is another crucial area in which Malaysia and Germany
can cooperate for our mutual benefits. With your
tradition of inventiveness and innovativeness, German
technopreneurs will find immense opportunities for e-
business in Malaysia. The growth of e-business is
phenomenal. Internet business will bring about faster
economic development to developing countries to the
advantage of the developed countries. German
technopreneurs can help us formulate systems of doing
internet dot.com business for our mutual benefits. A
win-win outcome is possible. German technopreneurs are
urged therefore to work together to capitalise on the
opportunities in the ICT sector.
20. Malaysia is not against globalisation. The
opening of markets to trade and investment has
contributed to Malaysia's own growth. Trade itself is
a major consequence of globalisation and a major engine
of growth for many countries.
21. Malaysia remains committed to market
liberalisation. However, market liberalisation and
globalisation must not mean anarchy in which the
colossal banks and corporations can ride roughshod over
everyone in their quest for profit. Liberalisation
should not mean total deregulation. There should be
sufficient policy and regulation to ensure fair trade
and consideration for the well-being of people in
general.
22. Malaysia is concerned with the equitable sharing
of the benefits of globalisation. The process should
neither be dictated by anyone nor the pace forced by
selected countries for their own benefit. It is
imperative that the countries are allowed to undertake
progressive liberalisation and build capacity to
benefit from the opportunities of globalisation.
Global trade rules should be strengthened with the aim
of providing a predictable, fair and stable
multilateral trading system. Rules however should not
be created to ensure compliance which can erode the
competitiveness of developing countries like Malaysia.
23. Globalisation should no be for the sake of
globalisation. It should be an instrument for the
betterment of humankind. We have seen too many
ideologies and systems which held great promise at
first only to destroy countries and people instead.
24. For some countries, the launching of a new round
of trade negotiations has become an obsession as if it
is the panacea to the problems besetting the
multilateral trading system. Trade negotiation is not
important except when the objectives are clear and time
is given for the proposals to be studied by all.
25. Trade negotiations should not include non-trade
issues which are already being considered in other
international bodies. Using trade and investments as
instruments to twist the arms of disadvantaged
countries and force them to submit is a form of
discrimination that is likely to make the poor poorer
still. The powerful are not free from unacceptable
practices but pressure cannot be brought to bear on
them effectively as they are not so trade dependent.
While it is expected that inefficient corporations in
poor countries should be left to wither and die,
inefficient farms in the rich countries continue to be
subsidised for political reason. The same can be said
of the garment industry.
26. Poor countries also lack the resources and the
manpower to negotiate. They can be easily browbeaten
into accepting conditions which would prove harmful to
them. Even the negotiations are not fairly conducted.
27. The problems related to the implementation of
existing agreements and commitments which are adversely
affecting developing countries have not been fully
addressed. Provision which are presently on "Best
Endeavour" basis need to be strengthened so that the
special and differential treatment accorded to
developing countries can be more effectively
operationalised. The existing imbalances in the
various Uruguay round agreements also need to be
adequately addressed.
28. It is sad that in this day and age, we should
still find countries and people who are extremely poor
while some countries are so wastefully rich. Yet there
is so much talk about human rights and social justice.
If wealth is more equitable distributed then problems
like child labour and sweat shops would not arise.
29. It is time that the excessive wealth of the rich
be subjected to a world tax in order to pay for needed
infrastructure in the poor countries. It has been
proven that construction and operations of public
utilities not only cause an inflow of funds but act as
catalysts for the development of a country.
30. Although our gathering today is concerned with
German industries and the Asia Pacific it is good if we
also look at the bigger picture - at the world in the
era of globalisation.
31. I would like to end by inviting German businessmen
to visit Malaysia to see for yourselves what the
country has to offer. At the very least you would
enjoy a good holiday in a country still 50 percent
covered by natural forests.
Sumber : Pejabat Perdana Menteri
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