Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	CAMBODIA 
Tarikh/Date	: 	15/04/94 
Tajuk/Title  	: 	THE JOINT BUSINESSMEN
			MEETINGIN CAMBODIA 



 Distinguished Guests;
Ladies and Gentlemen,
    I  am  pleased to be here today to have the opportunity
to  address  this  distinguished  gathering   of   Cambodian
business and industry leaders.  I commend the organisers for
the  initiative  to  hold  this  function  in order to bring
together like-minded business leaders of our  two  countries
to  discuss  issues  of  common interest so as to strengthen
bilateral cooperation.
2.   Currently, Malaysian companies have made investments in
Cambodia in such sectors as banking,  newspaper  publishing,
hotel,  telecommunication,  restaurant,  freight forwarding,
shipping, beverage production  and  petroleum  distribution.
The  total  amount  of investment made is estimated at US$40
million.  Despite this, the quantum of our  bilateral  trade
is still small, amounting to about US$12 million in 1993.
3.      Nevertheless,  I  am confident that the potential to
further widen  the   scope of business  cooperation  exists.
Many  positivefactors which c an enhance the development of
business activities between our two countries are in  place.
They include:-
     -    Measures  undertaken in Cambodia to liberalise the
          economy;
     -    The geographical  proximity of our two  countries;
     -    Cambodia's abundant natural and mineral resources;
     -    Favourable policies of  your  Government  to allow
          foreign  companies  to participate in the economic
          development   effort   of   the   country;  and
     -    The diversity  of  products  of both countries to
          expand bilateral trade.
Ladies and Gentlemen,
4.    The current modest level of  economic  cooperation  is
perhaps  due to the narrow range of products currently being
traded and the lack of contacts and  information  on  market
opportunities.      But  we  know  that  there  are  immense
opportunities for cooperation by the private sector of  both
countries  --  in  trade,  investments,  services  and other
sectors of the economy.
5.   It is in this context that I have  brought  with  me  a
trade   and   investment   delegation   comprising   leading
businessmen and  entrepreneurs  to  establish  contacts  and
interact  with  their  counterparts here so as to expand the
scope of our bilateral relations.
6.   I am certain that arising from these  discussions,  the
business  communities  of  both  countries  can identify new
areas of mutual interests for joint cooperation.
7.   Malaysia is an important market for imports.  In  1993,
total  imports  amounted to US$45 billion.  According to the
GATT 1993 International Trade Report, Malaysia was the  19th
largest import market in the world.  Given the rapid pace of
economic  growth, liberal import policies and the increasing
affluence  of  the  population,  the  Malaysian  market   is
expected  to  grow  in  importance for products from foreign
suppliers.
8.   Therefore, market prospects for Cambodian products  are
good,   particularly   for   agricultural   goods,   primary
commodities including minerals  and  intermediate  products.
In  this  regard, I wish to invite your exporters to come to
Malaysia  to  see  for  yourselves  the  vast  opportunities
available  and  to strengthen your contacts with our buyers.
Our business community will no doubt  be  prepared  to  give
their  full  cooperation  to Cambodian suppliers looking for
markets for their products.
Ladies and Gentlemen,
9.     In  return,  Malaysia  can  offer  a  wide  range  of
manufactured  products  at competitive prices.  They include
processed food consumer products, building  materials,  etc.
In  1993,  Malaysia exported manufactured products valued at
US$ 34 billion.  This accounted for 73  per  cent  of  total
exports.    Many  of these products have market potential in
Cambodia.
10.  In foreign relations, Malaysia accords much  importance
to  strengthening  linkages with the countries of the South.
Indeed, with Malaysia's  experience  and  knowledge  in  the
management  and  development  of its economy, we should have
some expertise to share with  Cambodia  in  its  development
efforts.
11.    In  addition, Malaysian companies have the experience
and the know-how to participate actively in the  development
of  the  Cambodian  mining,  timber  extraction,  plantation
management,  downstream  processing  of   agricultural   and
mineral  and  natural  resource  sectors and in the services
industry   such   as   finance,   engineering   consultancy,
construction,     development    of    infrastructure    and
tourism-related  projects.    Our  companies  have  a   good
performance  record  with  their  operations  in  many South
countries.   I    am    sure  these   companies   can   make
positive   contributions   towards   Cambodia's  development
efforts through joint ventures with Cambodians.
Ladies and Gentlemen,
12.    1 am pleased to note that several Malaysian companies
are already operating in Cambodia on a joint venture  basis.
Such  collaborative  efforts, albeit at a modest level, is a
step in the right direction to enhance  trade  and  economic
relations  between  our two countries.   I am confident that
Malaysian companies will intensify  their  participation  in
the  Cambodian  economy  as  they widen their contacts, have
better understanding of  the  opportunities  and  gain  more
confidence through their exposure and experience.
13.  To facilitate cooperation with Cambodia, the Government
of  both  countries have concluded an Air Services Agreement
to provide direct air transport between the  two  countries.
Our two Governments will continue to strengthen the existing
institutional   arrangements,   where   necessary,  to  give
confidence to the private sector to undertake business on  a
sustained basis.
14.  Malaysia has an open economy in which foreign trade and
investments assume an important role.  Malaysia is therefore
committed to an open and liberal global trading system which
would  help  to promote international trade.  Apart from its
commitment to  the  multilateral  trading  system,  Malaysia
recognises the importance of regional cooperation to promote
growth  and  help  to  reinforce  the  multilateral  trading
system.
15.  Malaysia is a member of ASEAN and participates actively
in all its programmes.  ASEAN is committed  to  establishing
the  ASEAN  Free  Trade Area (AFTA), a market of 320 million
people, by the year 2008.  The mechanism to achieve AFTA  is
the  CEPT (Common Effective Preferential Tariff) under which
the tariff level will be reduced  progressively  to  between
zero  and  five  per cent within a fixed timeframe beginning
from January this year.
16.   AFTA will be  an  important mechanism to expand intra-
regional trade  and stimulate rapid economic development  in
member  countries.     In  the  process,  new  opportunities
will be  created  for  the  business  community  within  and
outside the region.   In  this regard,  there  are certainly
areas   for  cooperation  between  Cambodian  and  Malaysian
businessmen    wishing   to   take   advantage   of    these
opportunities.
17.  The steady high growth rates registered by ASEAN in the
past  are  also  matched  by  those  achieved by many of the
dynamic economies of East Asia.  In addition to ASEAN,  East
Asia has evolved into a vibrant manufacturing and commercial
area.    This  has  benefitted regional trade and investment
flows, thereby reinforcing further  the  interdependence  of
the East Asian economies.
18.    The  intensification  of cooperation within East Asia
would help to stimulate production, trade and other  related
economic  activities.   Towards this end, ASEAN and the East
Asia Economic Caucus or EAEC are relevant to  the  Cambodian
economic  interests  considering  that  it  is  a  member of
Southeast Asia and developments in  the  region  would  have
stimulative  effects  on  its  economy.    As the economy of
Cambodia develops, I am certain that her linkages  with  the
economies  of  ASEAN  and  East Asia will strengthen and her
contributions  to  the  development  of  the   region   will
increase.
19.    The  visit  of  my  delegation here today is aimed at
enhancing bilateral ties.   With the support  given  by  the
government  of both countries to this effort, I am confident
that our businessmen will succeed in  forging  new  business
ties that would intensify further current bilateral economic
cooperation.