Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	ISTANA HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	05/12/93 
Tajuk/Title  	: 	THE OPENING OF THE PACIFIC RIM 
			BUSINESS COLLABORATION SYMPOSIUM 


 
    At  the  outset, I wish to thank the organisers of this
first Pacific Rim Business Collaboration Symposium, that is,
the Asian Strategy  and  Leadership  Institute  (ASLI),  the
International  Infotrade Inc. of the United States and Sabit
Sdn Bhd., for inviting me  today  to  officially  open  this
Symposium.
2.    The objective of this symposium is very laudable as it
is meant to promote regional business alliances.  It is only
right that the private sector should take the lead  as  they
stand  to  gain  by  it  the most.     This is especially so
because of the increasing size of Asia's market.   Based  on
current  performances,  it  is  expected  to  be the world's
fastest growing region in the 21st century.    Its  dynamism
will be a major force driving the world economy.  It is also
a  fact  that  despite poor economic performances elsewhere,
East Asian nations have continued to experience high  growth
and it would not be wrong to anticipate that this trend will
continue  for  many  years to come.   Indeed, it was not too
long ago when we were told that the  Mediterranean  was  the
ocean  of  the  past;  that  the  Atlantic  the ocean of the
present and the Pacific, the  ocean  of  the  future.    The
future  is  already  here  and Asia's share of global GDP is
expected to increase from about  25  percent  to  almost  33
percent  by  the  21st Century.   Asia's economic growth has
clearly outstripped world economic growth.
3.   In the case of Malaysia, we have been able to transform
it from an agricultural,  commodity-driven  economy  into  a
diversified  manufacturing  based  and  export-led  economy.
Today, Malaysia is one of the few  countries  in  the  world
that  enjoy  buoyant  economic  growth  with  low inflation.
While it is true that some countries are  booming  they  are
also afflicted with runaway inflation.  In Malaysia, prudent
economic  and  fiscal  policies  have  helped  businesses to
prosper and grow rapidly without affecting the low  rate  of
inflation   characteristic   of  the  country.     With  our
transparent and pragmatic policies,  we  hope  to  encourage
greater    inflow    of    foreign   investments   involving
sophisticated technology, high capital,  technical  know-how
and  marketing expertise.   Through this forum,  the private
sector hopefully can further enhance its capacity  in  terms
of  tapping  the  potential  markets  of the Asian countries
while  establishing  a  symbiotic  and  mutually  beneficial
relationship.    Today,  Malaysia  is  modestly  proud to be
regarded as a model for economic development.  If I may  say
so  the  achievement  is  even  more  impressive  as we have
managed not only to promote rapid economic development,  but
have   done  so  despite  being  a  nation  of  diverse  and
incompatible ethnic and religious mix.
4.    Malaysia's economic  transformation  and  East  Asia's
success  story  did not come about by accident.  It was also
not sheer luck that has made us what  we  are  today.    Our
success  story  is  the  product of much hard work, together
with a work ethic that is compatible with  industrial  peace
and high productivity.
5.      Indeed  we  believe strong, stable governments are a
major pre-requisite for success.   Look around you  in  East
Asia  and  you  will find that there is a strong correlation
between rapid economic growth and strong stable governments.
Strong governments are prepared to take unpopular  decisions
in  the  best  interests  of  the  nation.    Strong, stable
governments adopt a longer term  outlook  on  macro-planning
and  are not just concerned with the next general elections.
Strong  governments  provide  the  necessary  stability  and
predictability so esential to long-term investments.
6.      Strong  governments do not mean the absence of free,
democratic  elections.      When   people   understand   the
limitations  and  the  responsibility of citizens, democracy
can be practised without democratic extremism  and  anarchy.
Democracy  is  meant  to serve the people, not the people to
serve democracy.  When the devotion to democracy results  in
a  stagnant  economy,  high  unemployment  and denial of the
right  to  work  and  work  hard;  when  democracy  protects
fascists  and  neo-Nazis; when the individual activist takes
precedence over  the  silent  masses  then  it  is  time  to
question  whether  we  have correctly interpreted democracy.
It is important to remember that fanatical democrats are  no
better  than  religious fanatics.   They both cannot see the
wood for the trees.
7.   In the West, democracy means many things  to  different
people.    To  us  in Asia, democracy means our citizens are
entitled to free and fair elections.   They can  choose  the
Governments  of  their liking.  We also believe that once we
have elected our  Governments  they  should  be  allowed  to
govern  and  to  formulate  policies  and act on them.   Our
democracy does not confer complete licence for  citizens  to
go  wild.    We need political stability, predictability and
consistency  to  provide  the  necessary   environment   for
progress  and  economic development.  Thus, we have seen the
Singapore  story  unfolded  by  Mr  Lee  Kuan  Yew  and  now
continued  by  Mr Goh Chok Tong.  We see this in Indonesia's
success story with President Suharto, staying  at  the  helm
for almost 30 years.
8.      We  are  socially stable in Malaysia.   Although our
people differ in terms of culture, religion and  philosophy,
they  display  tolerance,  understanding  and  respect  each
others' way  of  life.    Malaysians  generally  believe  in
compromise.  We do not compromise out of weakness but rather
out of a common desire to see our nation remain peaceful and
prosperous.    The  vast majority of Malaysians are moderate
people, tolerant, sensitive to each other's differences  and
harbour little ill-will.
9.      Malaysia  is  fortunate  to have a resilient private
sector willing to undertake risks and  share  the  tasks  of
building  economic  prosperity.    The private sector is the
main engine of growth for the Malaysian economy.    Together
with  the  Government's  proactive  and sound macro-economic
principles  and  programmes,   the   concept   of   Malaysia
Incorporated   and  privatisation,  we  have  been  able  to
accelerate growth, reduce our foreign debts, deregulate  and
assist  the  private  sector  to expand their role.  We have
invested in the future, by allocating vast sums of money  to
build  infrastructure,  as  well  as  provide  education and
training suitable for an industrial economy.    It  is  this
commitment  towards  investing  in  infrastructure and human
resource development that has given us a strong  competitive
edge.
10.  Malaysia will continue to maintain its liberal economic
policies  and  development  programmes.    Our policies will
remain consistent, predictable and transparent.  For us  the
challenge  of  managing  success  is  just  as  important as
managing problems during a recession.  I am  confident  that
with  the  positive  measures  we  have  taken, we are today
better equipped to cope with any cyclical downturn.
11.  However, to enable us to better manage difficult  times
if  a  downturn  occurs,  we must not fritter away our gains
during boom  times.    We  will  continue  to  increase  the
national  savings  and diversify our economy so that we will
not be over-dependent on any one particular sector.  We must
diversify our markets as well as seek new  markets  for  our
products  and  services.    In  fact,  today  53  percent of
Malaysia's trade is with the nations of East Asia where once
it was almost exclusively with Britain.
12.   Rapid growth  as  is  being  experienced  in  Malaysia
usually  leads to overheating.  High inflation, breakdown in
services,   inadequate   funds   for    needed    supporting
infrastructure,  overstrained  bureaucracy and inadequate or
shortage in the supply of trained personnel; all these alone
or together can slow down or even reverse  economic  growth.
How  a  Government deals with overheating will determine the
future of the nation and its own fate.
13.   The trend today is  towards  a  free  market  economy.
China,  the  republics  of  the  former  Soviet  Union,  the
Indo-China states and the ex-Communist countries of  Eastern
Europe  have all embraced the free market system.  Some have
even adopted the democratic system of Government.  The  mere
adoption  of  these  economic  and  political  systems is no
guarantee of success.   If they are, then  all  the  western
democracies   with   market  economies  would  be  eternally
prosperous.  But we all know that they are not.  In fact the
countries which are doing well now are  those  with  not  so
liberal  democracy  and  an  economic  system  in  which the
Governments play a significant  role.    China  and  Vietnam
which  look set to grow economically have approximately this
kind of combination.   It would be unfortunate if  in  their
zeal   to  proselytise,  the  victorious  democrats  inflict
economic  and  political  disaster   on   the   enthusiastic
converts.    It  is well to warn that democracy and the free
markets are not economic and political cure-alls.
14.  Although, East Asia has achieved remarkable success and
has demonstrated strong, resilient  growth,  the  future  is
full  of  uncertainties  even  for  them.    Calamities  and
disasters are always possible even for those with  brilliant
records.    Japan  is the current example.  It is therefore,
all the more crucial and imperative for nations of East Asia
to work together in a more integrated and  cohesive  manner.
The  concept  of an East Asia Economic Caucus (EAEC) must be
firmed up further.   As I have stated  before  the  EAEC  is
Gatt-consistent  and  is committed to free trade.   The EAEC
is a result of and intended for open regionalism.    On  the
one hand it recognises the need for regional cooperation and
integration  and  on  the  other  it  promotes  free  trade.
Countries of East Asia must work  together.    The  need  to
balance  regional groupings elsewhere is obvious.  Alone, no
Asian country, however  powerful,  can  match  the  combined
clout  of the groupings which have been formed in Europe and
North America.
15.  No one need fear an  Asian  Grouping.    Europeans  and
North  Americans are much more homogenous than Asians.  Even
in East Asia we are not only ethnically different but we are
also divided by culture, language and religion.  It is quite
impossible  for  Asians  to  think  of  themselves  the  way
Europeans  think  of themselves as being of one race and one
colour.   Indeed the  European  culture  and  language  have
common  origins.    So  the  idea  of  an  integrated  Asian
Community borders on the ridiculous.  Not so an Asian or  an
East  Asian  forum  or  caucus,  designed  to discuss common
economic problems and to a limited extent to  help  pull  up
those  among  the  East  Asian  countries  which are lagging
behind.    All  these  can  be  motivated   by   enlightened
self-interest.    If today South East Asia is one of Japan's
valuable market, it  is  because  Japan  invested  in  these
countries and helped them to develop.  The highly successful
economies  of East Asia will be helping themselves when they
help the less developed countries in the region to grow  and
prosper.
16.    The  EAEC  is  therefore  a  logical follow-up of the
economic interaction in East Asia in the post World  War  II
years.    The  EAEC is good for the Governments of East Asia
which by and large are concerned to see that their countries
achieve economic well- being.  The EAEC is  of  course  good
for  the business community of East Asia as well.  What else
do businessmen ask for  more  than  to  spread  their  wings
beyond the borders of their countries.
17.    Today  the  narrow  protectionist  outlook  of Asian
businessmen has all but disappeared.  Not only are they keen
to  go  abroad  but  they  regard  business  alliances   and
collaboration  with  companies  in  other  countries as good
business strategy.   By so doing they  can  gain  access  to
markets  and also acquire new technology.  Indeed there is a
whole lot to be gained through cross-border collaboration.
18.   As leader of a  country  which  believes  in  regional
economic  collaboration I welcome this symposium.  I am sure
it will result in many alliances  and  collaborations  which
will benefit the region, and indeed the whole world.
19.    It  is  with  this  hope  and expectation that I take
pleasure in declaring this symposium open.