Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SHANGRI-LA HOTEL, SHENZHEN, CHINA 
Tarikh/Date 	: 	21/06/93 
Tajuk/Title  	: 	THE JOINT MALAYSIAN AND THE PEOPLE 



 Mr. Chairman,
Ladies and Gentlemen,
    I am pleased to be given this  opportunity  to  address
members of the Shenzhen and the Malaysian business community
and  to  share  some  thoughts with you on the prospects for
two-way trade and economic cooperation between the  People's
Republic of China (PRC) and Malaysia.
2.   Since  the  implementation  of market reforms and 'open
door policy' by the PRC, there have been  rapid  changes  in
the  country's economy and these have in turn generated many
opportunities for both local and foreign participation.   In
fact, developments in the PRC have proceeded at a fast pace,
creating  tremendous opportunities in various sectors of the
economy.  These new developments have  generated  tremendous
interest  among  foreign business circles.   This is clearly
reflected by the  large  number  of  Malaysian  captains  of
in dustry  in  my  delegation who are all keen  to  see  for
themselves  the various  trade and investment  opportunities
that the PRC has to offer.
3.   I have no doubt that many of us have been following the
positive  economic developments in the PRC these past years.
Nonetheless, I would like to draw your attention to the fact
that the PRC has been having a good  run  economically  over
the  last  couple of years.   In 1992, for instance, the PRC
recorded another year of buoyant growth of 12.8  percent  in
real terms.  Her manufacturing output increased by 14.4
percent  during  1980-1991,  while  the  1992  manufacturing
growth rate was at 20 percent.  With the  continuing  inflow
of direct foreign  investments into  the  PRC,  amounting to
US$58.6  billion in 1992 alone,  I am confident that the PRC
will continue to  reap  the  benefits  of  this  accelerated
economic development.
4.   I  believe the  emphasis  on  the growth of the Chinese
economy has been and will continue to be driven primarily by
private investments particularly direct  foreign  investment
in  the manufacturing  sector.   Your  country's  new  found
recipe  for  economic  success has been based on free market
principles.   The wisdom of this  new  economic  thrust  and
discipline  will certainly pave the way for greater economic
growth  and  development  in  the  years ahead.  In this,  I
believe  that  the  PRC will endeavour to  push  ahead  with
economic reforms and  will  strive  to  establish  a  market
economy open to the outside world.
5.   With  the  vast opportunities and a buoyant economy,  I
would therefore urge Malaysian businessmen to tap  the  vast
potential  of  the PRC  market.   The  Malaysian  Government
encourages reverse investments, and Malaysians can invest in
the PRC where there is a more competitive and cost-efficient
environment.    In  this  regard  I  am pleased to note that
Malaysian entrepreneurs have in some ways  been  active  and
participated  in  various projects in the PRC these last few
years.  I am exceedingly pleased to note that many  business
ventures  have  been  initiated  by  Malaysian  companies in
collaboration with  Chinese  and  other  business  partners.
Many   of  these  projects   are  at  different   levels  of
implementation    and  I  am    hopeful   that   many   more
joint-ventures  with equity   participation   by   Malaysian
businesses will be in the pipeline in the coming months.
Ladies and Gentlemen,
6.   I am pleased to note that the Malaysian private  sector
has  made   successful   inroads  in   property   and  hotel
development,   palm   oil   refining,   timber   industries,
manufacture  of  spring  mattress,   cables,  copper  alloy,
corrugated  cartons,  rubber products,  animal feeds,  food,
tiles and many others.
7.   Although these investments are relatively small in  the
context  of  overall direct foreign investment into the PRC,
they are, nevertheless, significant  considering  that  both
our countries have only recently lifted travel restrictions.
However,  the  number  of visits by companies and people has
increased rapidly and, no doubt,  this  will  contribute  to
further  enhancing  economic cooperation between businessmen
of both countries.
8.   The  Government of Malaysia  encourages  the  Malaysian
private  sector  to  invest  selectively  overseas and today
Malaysian investments  have  been  successfully  located  in
Iran,  Papua  New  Guinea,  Cambodia, Vietnam, Thailand, the
South Pacific and other countries.  Here in the  PRC,  there
is an abundant supply of well- educated labour at relatively
low  costs.  There is also the availability of technology in
which the Chinese are eminent in certain  fields.    On  the
other  hand, Malaysia has a high level of management skills,
capital funds and an indepth and extensive knowledge of free
market practices.  By coming together, Malaysian businessmen
can  benefit  from  the  PRC's  vast   resources,   educated
workforce,  relatively low cost of production and a huge do-
mestic market.  With the convergence and complementation  of
resources  and  expertise between the PRC and Malaysia, I am
confident that businessmen of both countries  can  establish
mutually beneficial investment projects.
Ladies and Gentlemen,
9.   The PRC, too, is now becoming an important exporter and
importer  in  world merchandise trade.   Her exports grew by
eight and a half times in the period  1978-1992,  i.e.  from
US$10  billion  to US$85 billion, contributing 17 percent to
GDP.  In 1992, the PRC was the world's 11th largest exporter
while her imports grew from US$ll billion in 1978 to US$80.6
billion last year.  The PRC also ranked as the world's  13th
largest  importing  country.    Similarly, Malaysia has also
achieved high growth  rates in  both  exports  and  imports.
According to the GATT International Trade  Report,  Malaysia
with  a  population  of  18.5 million,  ranked  as the  23rd
largest exporting  nation  and  the  22nd largest  importing
nation in 1992.  If both our countries  cooperate  and  take
advantage of  our respective assets, then we can  make  even
greater impact in the international market.
10.  Two-way trade between Malaysia and  the  PRC  has  also
increased from RM1,647 million (US$634  million) in 1987  to
RM4,446  million  (US$1,710  million)  in 1992, with imports
from  the  PRC  surpassing  Malaysia's   exports   to   her.
Malaysia's 1992 total exports to the PRC was RM1,961 million
(US$754  million),  constituting  an insignificant amount of
the PRC's total imports i.e. about 0.94 percent.   We  would
like  to see the expansion of direct bilateral trade between
our two countries instead of through third countries,  which
is  still  very  prominent.    Trade with third countries in
goods originating from Malaysia cannot be regarded as  trade
with  Malaysia  as  such trade already appears in records of
our trade with such countries.
11.  This meeting today will indeed contribute  and  enhance
the  bilateral economic and trade cooperation for the mutual
benefit  of  both  our  countries.   The presence of a large
number of prominent members of the Malaysian business sector
in my delegation augurs well for future  PRC-Malaysia  trade
and economic  cooperation.  I am confident that the meetings
and discussions that you will have here today will pave  the
way for new businesses to be conducted and result in greater
trade  andeconomic cooperation between  our  two  countries.
On this note I wish you every success in your deliberations.