Oleh/By : DATO SERI DR MAHATHIR BIN MOHAMAD
Tempat/Venue : SEOUL, REPUBLIC OF KOREA
Tarikh/Date : 23-05-2002
Tajuk/Title : THE LUNCHEON WITH THE
BUSINESS COMMUNITY
Versi : ENGLISH
Penyampai : PM
I am indeed very pleased to be here today with
members of the Federation of Korean Industries, Korea
Chamber of Commerce and Industry, Korea Federation of
Small and Medium Business and Korea International
Trade Association to share with you some views on
trade and investment opportunities that the business
communities of our two countries can explore and
develop for mutual benefit.
2. The Republic of Korea is an important trading
partner for Malaysia. In 2001, it was Malaysia's 8th
largest trading partner, 9th largest export market and
6th largest import source. The Republic of Korea
accounted for 3.7 percent of Malaysia's total trade,
valued at US$ 5.9 billion. The bulk of the current
bilateral trade is in electrical and electronic
products and components. It is also a major buyer of
Malaysian crude petroleum and natural gas and an
important supplier of ships, boats and motor vehicles
to Malaysia. I believe that there is ample scope to
expand and diversify the two-way trade. Apart from
being exporters of primary commodities, Malaysian
manufacturers have acquired the capacity and
capability to supply a wide range of competitively
priced manufactured and consumer products for the
global market. Korean importers could source from
Malaysia many of their import requirements.
3. Prospects for higher two-way trade and investment
are encouraging. The Malaysian economy is expected to
register a stronger real GDP growth at 3.5 percent in
2002 against a backdrop of low inflation and
unemployment of two and four percent, respectively.
Malaysia recorded a growth of only 0.4 percent in 2001
compared to a strong growth of 8.3 percent in 2000.
GDP growth in 2001 was affected by the slowdown in the
global economy particularly in the USA and Japan.
Growth in 2002 will continue to be led by strong
fiscal stimulus packages and manufacturing activities
aided by increased domestic and external demand. The
government will maintain a stable and fundamentally
sound economic environment to provide stability and
predictability for planning and investment decisions.
The stability of the exchange rate at 3.8 Malaysian
Ringgit to the U.S. dollar will also contribute
towards predictability and ease of planning.
4. Malaysia has been one of the major destinations
for Korean investments. Consequently, the Republic of
Korea is the 5th largest foreign investor in the
manufacturing sector in Malaysia. Korean investments
are mainly in electronics, non-metallic mineral
products, basic and fabricated metal products and
specialised products such as colour picture tubes,
glass panels and funnels, computer monitors, microwave
ovens and steel wire products.
5. There are altogether 114 companies with Korean
interests in Malaysia. Notable Korean-based companies
are Samsung, Hyundai, Kiswire, Sunkyong, Ssangyong,
Halla, SJM Co. Ltd and Samlong Chemical. Investments
by the Samsung Group alone amount to 1 billion U.S.
Dollar and this represents one of the largest offshore
investments for the Group. This is a testimony of the
supportive environment for foreign investors in
Malaysia. It is heartening to note that Korean
investors such as Samsung has remained fully committed
to their investments in Malaysia over the years and
has continued to expand and diversify their
investments in the country. Besides manufacturing,
Korean companies are also actively involved in
trading, construction and engineering and
service-based activities in Malaysia.
6. Clearly major investments have been made by
Korean companies in Malaysia and investing in Malaysia
has been a rewarding experience for the companies
involved. New, as well as existing investors,
including Small and Medium Industries (SMIs) are
welcomed to explore other investment opportunities in
Malaysia.
7. Korea has a strong outward-looking manufacturing
sector with major strengths in electronics,
telecommunications, IT and multimedia, automotive,
steel, chemicals, industrial machinery and other hi-
tech industries. Korean products and services now
compete with the best in the world and it is testimony
to the success of Korea's rise as an industrial and
technologically advanced nation.
8. The Korean economy has made a remarkable recovery
from the Asian financial crisis and the recent
economic downturn. The Republic of Korea has continued
to make sizeable investment overseas while being
itself a major recipient of foreign direct
investments.
9. Malaysia is a major hub for MNC investments and
serves as a strategic gateway for penetrating the
Asean market with more than half a billion population
base. Malaysia is particularly keen to attract
further Korean investments in areas such as electrical
& electronics, IT-related industries, resource-based
industries, ancillary and supporting industries and
the manufacture of industrial machinery and parts.
10. In ensuring that Malaysia is the choice
investment site, the Malaysian government has
continued to fine-tune investment policies and
incentives and provide the critical administrative
support to facilitate foreign investments in
designated areas. Despite competition from countries
with lower labour cost, Malaysia continues to enjoy
competitive and comparative advantages in the core
manufacturing sectors due to our excellent
infrastructure, well-educated, disciplined and
productive labour force and a strong base of
supporting industries.
11. Currently, Malaysian government agencies such as
the Malaysian Industrial Development Authority (MIDA)
and Small and Medium Industries Development
Corporation (SMIDEC) and the Korean Small Business
Corporation are collaborating closely to develop
industrial cooperation between the SMIs of both
countries. These collaborative efforts should be
stepped up and lead to mutually beneficial projects.
Korean SMIs are urged to explore investment
opportunities through collaboration with Malaysian
SMIs in the key supporting industries.
12. The Republic of Korea has put in place a long-
term vision for Science and Technology Development
towards 2025 in order to achieve scientific and
technological competitiveness in selected areas
comparable to G-7 countries. It has already achieved
tremendous progress in a number of areas including the
ICT sector. Malaysia too has set its target to
achieve developed nation status by 2020. As most of
you are aware, Malaysia has taken steps to benefit
from the vast opportunities offered by the ICT sector.
Both Malaysian and Korean companies could look into
the possibility of having cooperation and
collaboration for mutual benefits.
13. To facilitate the development of ICT business
activities, Malaysia has created the Multimedia Super
Corridor (MSC) and put in place the necessary
infrastructure, policies and cyber laws to make the
MSC an ideal place for ICT activities. Towards this
end, the Multimedia Development Corporation (MDC) of
Malaysia and Korea Institute of Multimedia Contents
and Software (KOMS) have been cooperating in
developing the ICT sector. I hope this will lead to
the participation of more Korean companies in the MSC
and that they will benefit from Malaysia's unique
position as the hub of information technology and
multimedia in the ASEAN region.
14. ASEAN has emerged as the largest trading partner
for Malaysia. In 2001, 24 percent of Malaysia's
external trade was conducted with our ASEAN partners.
In fact, Malaysia's trade with ASEAN had increased by
almost three fold since the launching of the ASEAN
Free Trade Area or AFTA in 1993. Malaysia's trade with
ASEAN will continue to increase particularly with the
completion of AFTA. Malaysia is fully committed to
the AFTA process. Malaysia's position within the ASEAN
region offers a unique opportunity to the Korean and
Malaysian business community to forge strategic
partnerships to leverage on the enormous trade and
investment potentials of the region.
15. The export of services, particularly education,
is becoming a significant sector for Malaysia.
Malaysia aims to be the centre of excellence in
education in Southeast Asia. Emphasis will continue to
be given by the government to facilitate the growth of
tertiary education through establishment of new
private universities and capacity expansion of these
institutions of higher learning. Reputable foreign
universities from United States, Britain and Australia
have established branch campuses and twinning
programmes in Malaysia. The Korean higher learning
institutions too can assume an important role in the
promotion of higher education and human resources
development in Malaysia. Towards this end, cooperation
between institutions of higher learning of Malaysia
and the Republic of Korea can be explored and
enhanced. South Korean students are also welcomed to
avail themselves of the educational opportunities
offered in Malaysia. Presently, there are nearly
20,400 foreign students studying in Malaysia of which
579 are from South Korea.
16. Tourism is an area which offers vast scope for
further expansion. Malaysia is now known as a value
for money destination for international tourists. To
meet the growing demand of the tourist industry,
Malaysia has invested in the building of necessary
infrastructure and facilities. In 2001, Malaysia
received 66,343 tourist arrivals from South Korea
although at a slightly smaller figure than the
arrivals registered in 2000 at 72,443. I am hopeful
that a greater number of tourists from the Republic of
Korea would visit Malaysia for holidays, golf and
shopping especially duty free imported and branded
goods.
17. Malaysia is appreciative of the Korean government
for its strong support and commitment towards the
successful implementation of the Look East Policy
first introduced in 1983. The programme is now in its
sixth phase. So far 2,243 Malaysians have undergone in-
plant industrial and technical training, academic and
technical education, executive development,
participation in youth exchange programmes and
attendance in short training courses in the Republic
of Korea. On average, 20 to 30 students from Malaysia
have been sent every year to study at local
institutions in the Republic of Korea. Malaysia
regards these programmes as important for our human
resources development to achieve its goal of becoming
a developed country by 2020.
18. Governments can be facilitators and door openers
for establishing trade and economic relations, by
putting in place frameworks for closer economic
cooperation and through exchange of visits. However, it
is important for the business communities of both
countries to take the necessary steps in realising
business potentials which could be developed not only
at bilateral level, but also at the regional and global
levels.
19. I invite members of the Korean Business Community
present to attend the special workshops on investment
and trade, offshore financial services, multimedia
and IT, and the individual business meetings arranged
after this luncheon. I hope that business contacts,
which have been established, will not end with this
visit but instead generate actual collaboration.
20. On this note, I would like to thank the Korea
Federation of Small and Medium Business, Korea Chamber
of Commerce and Industry, the Federation of Korean
Industries and the Korea International Trade
Association for hosting this lunch and wish all of you
success in your business endeavours.
Sumber : Pejabat Perdana Menteri
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