Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SEBERANG PERAI, PENANG 
Tarikh/Date 	: 	21/12/93 
Tajuk/Title  	: 	THE OFFICIAL OPENING OF OTIS 
			MANUFACTURING SDN BHD 


 
    I would like to take this opportunity  to  congratulate
Otis  Manufacturing  Company  Sdn.  Bhd. for setting up this
plant in Malaysia.  Malaysia is especially  proud  of  Otis'
confidence  in  this  country, as Otis is one of the world's
largest manufacturers of elevators and escalators.   I  hope
its  choice of Penang as the site for its factory is not due
to Penang being 'more Chinese' as reported by the  Economist
sometime  in  May  this year.   The foreign press as we know
have always been 'naughty' when reporting  about  Malaysia's
success story.  I am sure Malaysia was chosen mainly because
of its political stability.  All the states in Malaysia have
played hosts to successful manufacturing enterprises.
2.     'Elevator, escalator and parts thereof' is a promoted
product that is granted tax incentives under  the  Promotion
of  Investments  Act 1986.   The production of elevators and
escalators involves advanced technology and  the  fact  that
there  are  approximately  only seven major producers in the
world speaks for itself.
3.   The rapid pace with  which technology has  advanced  in
this  industry  has  dramatically  changed  the shape of the
world.  No longer were the imaginations  of  architects  and
builders  stopped  at the third floor of buildings; now with
escalators and  elevators,  they  can  design  multi-storied
shopping  complexes  and  skyscrapers  of  almost  unlimited
heights.  The urban landscape need no  longer  be  flat  and
sprawling.   Now city skylines can break the monotony of the
horizon.  Innovative, safe, fast and reliable ways have been
found to move people up  and  down  and  along  interminable
corridors.    Walking and climbing need no longer be tiring.
Product   innovations   include   double-decker   elevators,
glass-enclosed  observation  elevators  and the people mover
systems.  Such product innovations have changed man's living
and working environment.   Of course, innovations  have  not
stopped at external structures, the inside workings of these
people movers have changed and improved as well.
4.      Building construction in East and South East Asia is
booming.  By locating in Malaysia, Otis can  take  advantage
not  only  of Malaysia's rapid growth but that of the region
as well.  Under the Sixth Malaysia Plan, US$ 10 billion  has
been  allocated to finance infrastructure development alone.
Construction initiated by the private sector is even bigger.
Very many elevators, escalators and walkalators are going to
be needed.
5.    To ensure investments are profitable,  the  Government
reviews  and  analyses policy measures on an on-going basis.
This  is  also  to  ensure  that  a  coherent   process   of
industrialisation  would  have  the desired spin-offs in the
economy as a whole.
6.     Malaysia  has  enjoyed  seven  consecutive  years  of
sustained  rapid  growth.   Next year is also expected to be
another boom year.  Real gross domestic product is  expected
to  touch  8.2  percent,  which  will  be  higher  than  the
estimated eight percent this year.  Macro-economic  measures
taken  by  the  Government  to  sustain  growth  and prevent
inflation in the last two years have  borne  results  beyond
expectations.    The fundamentals are now firmly emplaced to
help the economy continue its path of sustained expansion in
the future, with the manufacturing sector playing  the  lead
role in the transformation of the economy.
7.              The manufacturing sector continued to be the
dominant source of growth in  the  economy  in  1993.    Its
contribution  to  real  GDP  is expected to increase further
this year.   Due to the  strong  external  demand  and  good
growth   in   the   domestic  market,  value  added  in  the
manufacturing sector is expected to expand at a faster  rate
of 11.6 percent in 1993 compared to 10.5 percent in 1992.
8.   In particular the export-oriented industries registered
a  creditable  growth  of  15.9  percent  in the first seven
months of 1993.  Despite a population of only 19 million, we
are the 16th biggest trading nation in the world.   Overall,
exports to the U.S rose by 34 percent last year.  Malaysia's
exports to the U.S.  amounted to US$8.18 billion.
9.    In terms of projects with U.S. investments approved in
the manufacturing  sector,  in  1992,  41  projects  with  a
proposed  capital  investment  of  US$1.28  billion (RM 3.30
billion) were approved.  These projects accounted  for  18.5
percent  of  the  proposed  total  foreign investment in all
projects approved in 1992.  For the first ten months of this
year, 22 projects with American interests were approved with
a proposed capital investment of US$ 652  million  (RM  1.68
million).   These projects accounted for 27.7 percent of the
proposed total foreign investment of RM6.07 billion  in  all
the  projects  approved  during  the same period, making the
United States the largest foreign investor  in  Malaysia  in
1993 to-date, followed by Japan (RM 1.5 billion), Taiwan (RM
836  million)  and  the  U.K. (RM 467 million).   It is also
interesting to note that interest in investments is not just
shown by new projects alone.   This is  because  of  the  22
projects   granted   approval,   eight  were  approvals  for
expansion   of   their   existing    capacities    or    for
diversification  of  their  existing  products.    This fact
testifies to the growing confidence  of  U.S.  investors  in
Malaysia's investment climate.
10.    It is a truism that a climate of uncertainty is never
good for any business.  But for Malaysia her greatest assets
are  both  her  political  stability  and   consistency   of
Government  policies,  factors  which are most valued by the
business  community.     It  is   still   clear   that   the
concentration of interest among investors continues to be in
the  Asia  Pacific  region.   Asia's growth which is largely
driven by the  major  economies  of  the  Pacific  basin  is
estimated at 8.75 percent this year and 7.1 percent in 1994.
The  world  economy  at  large  is  expected  to grow at 2.2
percent in 1993 and 3.2 percent in 1994.
11.  As more countries join the ranks  of  trading  nations,
Malaysia's ability to maintain and expand her markets amidst
greater   competition   worldwide   will   hinge   upon  her
competitiveness.   Malaysia's excellent  performance  should
not  lull  us  into  complacency  but should make Malaysians
strive to be ever more competitive in the future.    We  are
aware  that certain inherent weaknesses such as productivity
levels and technical skills must be addressed.
12.  Certainly, when companies such as Otis  undertake  here
in Malaysia activities that go beyond mere fabrication, then
it  indicates  their  willingness  to  integrate  as much as
possible into the Malaysian industrial community.  This will
increase the added value of their operations in Malaysia.
13.  This is a reflection and indication  of  the  long-term
perspective  of  their investments in Malaysia.  They regard
Malaysia not merely as  an  operations  location  to  profit
from,  but also as a permanent base from which to expand and
diversify.
14.  The challenge of investment promotion  will  inevitably
become  more  difficult.    Not only has Malaysia to compete
with the  other  Less  Developed  Countries  and  the  Newly
Industrialised   Countries   but  also  with  the  developed
countries  which  are  taking  strong  measures  to   retain
investors  in  their countries.  Our focus must therefore be
on   higher   value   added,   capital   intensive       and
technologically sophisticated industries, all of which would
help  to  strengthen  the industrial linkages and to ensure
that Malaysia develop even greater export capabilities.
15.  Malaysia is hopeful that more American  investors  will
come  forward  and  form alliances with Malaysian investors.
The environment is now more conducive as the  corporate  tax
has  been  reduced  from 34 percent to 32 percent, effective
from year of assessment 1994.  It will be further reduced to
30 percent effective from year  of  assessment  1995.    Our
company  income  tax  rate  will  be  comparable  to that of
neighbouring countries.  The 1994 Budget recently  announced
carry several new incentives pertaining to high-tech and R &
D  operations  that should encourage more inflows of foreign
direct investments.   At the same time  this  should  enable
existing   operations   to   expand  and  new  manufacturing
enterprises to locate their projects in the eastern corridor
of Peninsular Malaysia and in Sarawak and Sabah.
16.  I now have much pleasure to officiate  the  opening  of
the Otis Manufacturing Company Sdn Bhd.