Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : IN KARACHI, PAKISTAN
Tarikh/Date : 17/02/93
Tajuk/Title : LUNCHEON HOSTED BY MALAYSIA -
PAKISTAN VENTURE SDN BHD, WESTBURY
PVT LTD AND THE FEDERATION OF
PAKISTAN CHAMBERS OF COMMERCE
AND INDUSTRY.
Mr. Basheer Jan Mohammed,
Chairman of Pakistan - Malaysia Economic Association;
Mr. Mian Habibullah,
President of the Federation of Pakistan
Chambers of Commerce and Industry;
Distinguished Guests;
Ladies and gentlemen,
I would like to thank Malaysia - Pakistan Venture Sdn
Bhd, Westbury PVT Ltd and the Federation of Pakistan Cham-
bers of Commerce and Industry for inviting me to this lunch-
eon and to share some thoughts on opportunities and ways to
strengthen economic and commercial relations between
Pakistan and Malaysia. I have with me here today a number
of prominent members of the Malaysian private sector, some
of whom already have business ties with Pakistan. They are
all, I am certain interested in strengthening further the
bilateral commercial ties between our two countries.
2. Pakistan and Malaysia have always enjoyed close and
cordial links. This can be attributed to our common history
and the common beliefs that we share in various fora of the
United Nations. The long history of people to people con-
tacts has also contributed to such links. On the trade and
economic front, our two governments have consciously and
systematically laid down a strong framework for cooperation
such as those embodied in our bilateral trade agreement and
the formation of the bilateral joint commission.
3. Our long association has resulted in encouraging trends
in our economic and commercial relations. The value of
trade between Pakistan and Malaysia has progressively in-
creased especially over the last 5 years. For example,
total two-way trade in 1991 amounted to US$438.1 million and
for the first nine months of last year it was valued at
US$352.2 million. Pakistan today has emerged as Malaysia's
largest trading partner among the countries of the sub-
continent.
Ladies and Gentlemen,
4. Whilst members of the private sector of our two coun-
tries should be congratulated for their active involvement
in bringing about these encouraging trends, we need to re-
mind ourselves that much more can be done. A further exam-
ination of the trade between our two countries reveals that
the base is limited and largely confined to commodities. At
the same time trade between our two countries constitute
less than 1 percent of our respective global trade.
5. It is clear that two countries are very dependent on
the North both in terms of markets for our products and in
terms of sources of our imports. Although our dependence on
the North will continue, we should not foreclose prospects
and opportunities to strengthen economic and commercial ties
with countries of the South. This becomes more pressing
given the current uncertainty for a successful conclusion of
the Uruguay Round of multilateral trade negotiations, the
formation of NAFTA and the consolidation of the single
European market. All these will pose greater challenges for
us to maintain, let alone improve our position and share in
the markets of the North. Whilst we will and must continue
to attach importance to a successful conclusion of the
Uruguay Round, we must continue to pursue efforts at diver-
sifying our markets. The South can offer us fair opportu-
nities for such diversification.
6. It is evident that many developing countries have, over
the last five years, taken bold steps towards market
liberalisation and deregulation. I am aware that Pakistan
itself has undertaken liberalisation measures and deregu-
lation aimed at bringing about greater transparency and sim-
plicity in commercial procedures. I am also aware that
since December 1990 Pakistan has embarked on an industrial
policy that encourages greater foreign participation.
Pakistan has also introduced a series of privatisation, de-
regulation and liberalisation measures which address impor-
tant sectors such as banking, public utilities and
manufacturing enterprises. Malaysia's own efforts and expe-
rience in these areas has resulted in greater trade and in-
vestment flows, brought about greater technological
development as well as higher efficiency and productivity
levels. In effect, the sum total of liberalisation measures
undertaken by developing countries will bring about the
emergence of growing markets in the South, able to supply
and absorb a wide range of products from raw materials to
manufactures with high technology.
7. It is also evident that the countries of the South have
made efforts unilaterally and collectively to enhance trade
amongst themselves. The framework for such cooperation have
been strengthened through practical mechanisms. The network
of bilateral trade agreements, investment guarantee agree-
ments and bilateral payment arrangements are evidence of
such practical approaches. At the multilateral level,
projects that have been launched by the G-15 such as the
South Investment and Trade Technology Data Exchange Centre
(SITTDEC) and the strengthening of the Generalised System of
Trade Preferences (GSTP) among developing countries can and
will complement bilateral efforts towards increasing trade
investment and technology flows in the South. At regional
and sub-regional levels our experience in economic and trade
liberalisation, initially on a preferential basis and con-
fined to members of respective groupings, will bring about
higher efficiency and competitiveness levels that will spur
liberalisation on a most-favoured nation basis.
8. In Malaysia, we have embarked on a serious drive to en-
hance economic and commercial links with developing coun-
tries in our effort to develop. The Malaysian private
sector has kept pace with this drive and has establish con-
tacts and networks in many developing countries which have
resulted in greater two-way flows of trade. On the invest-
ment front, although we are still dependent on the in-flow
of foreign direct investment, the Malaysian government now
encourages Malaysian businessmen to venture out and invest
overseas. I am confident that the current level of joint-
venture tie-ups between our two countries will continue to
increase given the pull factor fostered by the liberal in-
dustrial policy launched by Pakistan and the push factor de-
rived from Malaysia's policy on reverse investment.
Ladies and Gentlemen,
9. It is therefore pertinent and timely for you who repre-
sent the private sector of Pakistan and Malaysia to contin-
uously take stock of such policy changes with a view to
intensifying joint-ventures and commercial links. At the
level of chamber to chamber cooperation, you both have a
convenient vehicle in the form of the Malaysia-Pakistan Eco-
nomic Association (MAPECA) formed between the two chambers
of commerce and industry. Under the MAPECA, you are both
committed to the forging of closer working relationships and
to the facilitation of the exchange of information and pub-
lications of trade and investment. I hope that MAPECA will
continously strive to explore ways and means to diversify
and increase trade, investments and services between our two
countries. The degree of success in our bilateral efforts
to bring our two countries closer in the economic and com-
mercial field depends on how serious and committed the pri-
vate sector of our two countries are in strengthening these
links.
10. From our own experience in development we find that
Malaysian entrepreneurs can acquire and develop certain ex-
pertise and capabilities in certain fields. Some of the
Malaysian private sector personalities who have come with me
here today have a degree of expertise in sectors such as
mining, plantations, construction, tourism development,
processing and manufacturing of resource-based products. We
are aware that Pakistan entrepreneurs have also developed
expertise and capabilities in various fields. I am confi-
dent that the meetings and discussions that you will have
today will reveal complementarities that can be translated
into viable commercial projects.
Ladies and Gentlemen,
11. I am sure that the encounter between the Pakistani and
Malaysian businessmen in my delegation will lead to fruitful
results both for your various enterprises and for our two
countries.
Thank you.