Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	BANGKOK, THAILAND 
Tarikh/Date 	: 	20/08/93 
Tajuk/Title  	: 	MEETING WITH THAI 
			BUSINESS COMMUNITY 



 Mr Chairman;
Ladies and Gentlemen,
     I am honoured to be given this opportunity  to  address
members  of  the  Thai  business community and to share with
you some thoughts on the prospects for greater two-way trade
and  economic  cooperation  between  Thailand  and Malaysia.
2.  Our  two nations have had a long history of trade dating
back to olden  times.  Thailand's  southern  and  Malaysia's
northern  states  have  a  long trading relationship and for
centuries trade in spices, rice, gold, silver, tin and other
goods flourished.  Today that trade has been  taken  over an        d
trans
thriving bilateral trade in a  far  wider  range of products
amounting to US$2.46 billion in  1992.  In  the  same  year,
Malaysia's exports to Thailand amounted to  US$1.48  billion
while our imports from your country was valued at about US$1
billion.
Ladies and Gentlemen,
3.   Thailand, Malaysia and the rest of  ASEAN  lie  at  the
very hub of the Western Pacific Rim which are now undergoing
tremendous economic changes.  The pace and momentum of these
economic changes, will carry the countries in this area into
an era of unprecedented  economic  prosperity.  In  addition
the economic reforms taking place in the  People's  Republic
of China, as well as the reforms and reconstruction  process
in Vietnam and other countries in Indochina, are also likely
to bring forth tremendous  economic  progress in the region.
As  a  result  there  will  be  numerous  new  business  and
investment opp  ortunities for all to seize and develop.
4.   However,  despite  the  phenomenal  success  of   these
countries we need to be wary of the pressures exerted by the
international economic environment,  namely the geopolitical
power  play  of  the  developed  west  and their demands for
preconditions on trade, including linking trade to non-trade
issues,  such  as  human  and   workers'  rights,  and   the
environment.   All  these  can  hamper  the  progress   that
countries in the region are about to make.  It is  therefore
important for us to be actively involved in deliberations at
the  multilateral  level  to   strengthen   the   rules  and
disciplines of free trade.  In this respect ASEAN  has  made
its contributions felt in the  Uruguay Round of Multilateral
Trade talks.
5.   Nevertheless, while we pursue  efforts  towards greater
liberalisation of free trade to ensure that  markets  of the
rich North remain open,  countries  within  the  region  and
within the  South should  also open their markets and  allow
access for each other's goods.  Liberalisation  will  remove
market   inefficiencies   and   promote   greater   economic
activities and ultimately bring growth  and  development  to
our economies.  It is for this reason  that we in the region
should strive  for  greater  economic  cooperation  by first
liberalising our own economies.
Ladies and Gentlemen,
6.   Within the context of these developments, both Thailand
and Malaysia  can  complement  each  other  in our quest for
greater economic growth and prosperity.  We both have strong
and vibrant  economies.  Our  people  have  a  penchant  for
hardwork and are endowed with the  necesssary  skills.  Both
our  countries  enjoy  high  rates  of  growth with yours at
double digit growth in recent years and Malaysia at seven to
eight percent per annum.  Our two countries have also seen a
vast transform ation  of  our  economic sectors,resulting in
a   switch   from   the  production   of  commodities to the
production and export of manufactured goods.
7.   Given   the   above   factors,   there   are  certainly
opportunities  for  Thai  and  Malaysian businessmen to come
together  to  jointly  participate  in  industrial and other
economically  feasible  ventures  for mutual benefit.  It is
interesting  to note that out of the total number of 61 Thai
investment   projects  approved   in  Malaysia  since  1980,
involving Thai equity of US$29.5 million and a total capital
investment  of  US$82  million, about 40 industrial projects
are  already operational.  Undoubtedly  the level of capital
investment  by  Thai  businesses  in  Malaysia is  still low
and can be further increased given  the closeness of our two
countries and the possibilities for project complementation.
Apart from complementation ventures in  ASEAN, the  Northern
Growth Triangle  that  is  being  proposed  also provides an
opportunity for  both  the  countries  as  well as our ASEAN
neighbour Indonesia to participate.  Thailand for example is
renowned for her  agro-based  industries,  light  industrial
consumer products,  animal  husbandry  as  well  as in other
sectors. In other areas, there are avenues for both Thai and
Malaysian  business  counterparts  to  collaborate in a wide
range of activities, such as cross-border manufacturing, raw
materials processing, light engineering  and  manufacturing,
with ASEAN and the global markets as their targets.
8.   Malaysia  and  Thailand  each  has  a  thriving tourism
industry,  a  buoyant  industrial  economy  and  an  ongoing
nationwide   infrastructural    programme    to      upgrade
communications, roads, bridges and other industrial  support
facilities.   These   provide   additional    avenues    for
cooperation.  I would  like  therefore to  extend  this open
invitation to the Thai business community  to  work  jointly
with their Malaysian counterparts, some  of  whom  are  here
today  with me,to explore the synergistic possibilities that
joint economic ventures present.
9.   The recent implementation  of  the  Common    Effective
Preferential Tariff by ASEAN to create an ASEAN  Free  Trade
Area by the year  2008  should  provide  Thai and  Malaysian
businessmen  the  extra  impetus  to  venture into new areas
where we have the competitive edge. The proposed ASEAN  Free
Trade A rea will  become  a   reality  within  a   projected
time-frame of 15  years  and  towards  this end I would hope
that   all  ASEAN    member  countries  would  undertake  an
accelerated programme  of  across-the-board  tariff  cuts to
make the  ASEAN region an   even  more competitive and truly
'Free Market' where numerous opportunities prevail.
10.   Our  commitment  to   free   trade   and   to   market
liberalisation has always underlined our economic growth and
progress in ASEAN.  We must continue to adopt strategies and
approaches that will enhance  trade  and  investment  within
ASEAN as well as strengthen inter-regional cooperation.  The
consensus  that  was  reached  in Singapore on the East Asia
Economic  Caucus  will  enable ASEAN to pursue consultations
with  other  East  Asian economies towards the expansion  of
intra-regional  economies  and  the promotion of an open and
free global trading system.
11.   As  an  ongoing  exercise,  ASEAN and other East Asian
economies can focus on our own contribution towards
substantial and balanced  results  of  the  Uruguay Round of
Multi  lateral Trade negotiations.  We can also embark on an
investment  initiative  in  East  Asia  taking cognisance of
liberalisation measures undertaken by regional economies, in
addition  to benefitting from foreign direct investment from
the  rest  of  the  world  given  the  favourable   economic
environment of  the  region.  ASEAN's own  ASEAN  Industrial
Joint Venture (AIJV) programmes should be enhanced to ensure
greater   participation  of  East  Asian   investors.  ASEAN
investors can also strike strategic alliances with others in
the economic  activities  of  regional  economies  that  are
undergoing economic reforms in order to integrate themselves
with the international economic system.
12.  The recipe for economic success in ASEAN  will  be  for
member  countries  to  jointly  come  together to bring down
tariff  barriers  and   to   develop   their  resource-based
industries, as well as  to  strive for growth on the back of
the current buoyant economic environment.
Ladies and Gentlemen,
13.  Let us  not  allow  these  opportunities  to  slip  by.
Together Thailand and Malaysia can  scale  greater  economic
heights by taking that great  step  forward by  investing in
joint industrial cooperative  projects  and  other  business
propositions for mutual benefit.
14.  On this note, I wish you every success in your business
endeavours.