Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	TANJUNG AGAS, MUAR, JOHOR 
Tarikh/Date 	: 	09/06/94 
Tajuk/Title  	: 	THE OFFICIAL OPENING OF PIONEER 
			TECHNOLOGY (M) SDN. BHD. 


 
    Saya  mengucapkan  terima kasih kepada pihak pengurusan
dan  kakitangan  Pioneer  Technology  (Malaysia)  Sdn.  Bhd.
kerana menjemput saya untuk merasmikan pembukaan kilang ini.
Penubuhan    Pioneer   Technology   (Malaysia)   Sdn.   Bhd.
menunjukkan keyakinan Pioneer  Electronic  Corporation  dari
Jepun   terhadap   Malaysia  sebagai  pusat  pelaburan  yang
menguntungkan.  Tahniah dan terima kasih saya ucapkan kepada
Pioneer Electronic Corporation  kerana  mengambil  keputusan
untuk melabur di Malaysia.
2.      Syarikat  Pioneer  Electronic  Corporation  bukanlah
syarikat tunggal yang  mempercayai  bahawa  Malaysia  adalah
salah  satu  negara  yang cemerlang bagi kegiatan perniagaan
dan pelaburan.   Lebih daripada 3,500  syarikat  yang  turut
berkongsi  keyakinan  ini telah menubuhkan operasi mereka di
negara ini.
3.   Malaysia is proud to say that between  1991  and  April
1994,  a  total  of  RM77.7 billion worth of investments has
been approved for the manufacturing sector.  Of this  total,
foreign  investors  accounted for RM42.8 billion or 55.1 per
cent of total investments.
4.              In our efforts to realise our  objective  of
becoming  a  fully industrialised nation, great emphasis has
been placed on the manufacturing sector, which  is  expected
to  be the major source of growth for the next three decades
or so.   Within the manufacturing  sector,  the  electronics
sub-sector   continues   to   be  a  strong  driving  force,
registering a remarkable output growth rate of 29.6 per cent
per annum between 1988 and 1993.   It also  recorded  annual
average  growth  rates  of  30.4  per cent and 24.4 per cent
respectively in terms of export and employment for the  same
period.
5.      Japanese  investment  in  the  manufacturing sector,
especially in the electrical and electronics sub-sector, has
always been significant.   Between 1980 and  April  1994,  a
total  of  452  projects  with  investments  totalling RM6.9
billion was granted approval in this sub-sector,  accounting
for  36.5  per  cent  of  total  Japanese  investment in the
manufacturing sector during this period.  Not only that, the
bulk of the industry's output is also exported.    In  1993,
total exports  of electronics products was valued at RM 46.7
billion,  of which RM5.4 billion or 11.6 per cent  was  made
up of audio products.
6.        Recognising  the  important  contribution  of  the
electronics industry to  the  economy,  the  Government  has
always  provided  support  and  encouragement  in  terms  of
ensuring  the  prevalence  of  the  appropriate   investment
climate  for its growth.  The basic thrust of the Government
policy will be to diversify the industry, not only to enable
the production of a wider range of electronic  products  but
also to create more effective forward and backward linkages.
7.     Currently two crucial issues facing the industry that
are  of  concern  to  us   are   the   low-level   Malaysian
participation   and   the   lack  of  linkages  between  the
electronics industry and the  local  supporting  industries.
Therefore,  the  Government has decided   that   among   the
conditions  for  the  granting  of tax
incentives will be the requirement of local content and  the
development of linkages with local industries.
8.     It is also the Government's intention that more local
entrepreneurs, particularly Bumiputera entrepreneurs, should
venture  into  supporting  industries.    Investors   should
actually welcome these conditions as they would:-
     (i)  enjoy  the  convenience   of  component  suppliers
          located nearby,  coupled  with prompt delivery and
          good technical services, and;
     (ii) counter  the  rising cost of components from Japan
          following the appreciation of the  Yen  which  has
          led to the need to  find  cheaper sources  without
          compromising  quality.
9.   This is where the small and  medium  industries  (SMIs)
can  play  an  important  role  as  suppliers  of  parts and
components to the large companies engaged in the  production
of final products.  The Government has established a special
Vendor  Development  Programme to facilitate the advancement
of the SMIs  in  the  country.    In  1992,  the  Government
introduced   the   `Electrical  and  Electronics  Components
Scheme' in the  consumer  electronics  sub-sector  for  this
purpose.
10.    Technology is the key to development.  It is our hope
that with the enhancement of  sub-contracting  relationships
with  major  consumer electronics firms, the Malaysian firms
may gain substantially through the transfer  of  technology,
especially  in respect of the manufacturing and sub-assembly
process,  quality  assurance  techniques  as  well  as   the
operations management know-how.
11.    In order to enable this transfer of technology, it is
important that manpower training be stepped  up.    In  this
regard  I am glad to note Pioneer Technology (Malaysia) Sdn.
Bhd's commitment to manpower training.  I have been made  to
understand  that  despite  being  only  10  months  old, the
company  has,  to-date,  spent    over     RM1  million   on
management,   engineering  and  technical  skills  training.
This, I believe, reflects the sincerity of  the  company  in
enhancing   skills   development  and  in  facilitating  the
transfer of technology to Malaysians.
12.  Research and Development (R &  D)  plays  an  important
role  in the process of our development.  Thus, new elements
that  are  being  introduced  into  the   fiscal   incentive
structures  to  encourage  R  &  D  activities  reflect  our
commitment to this.   It is hoped  that  foreign  companies,
such  as  Pioneer Technology, will avail themselves of these
incentives and will eventually  set  up  their  own  R  &  D
centres in the country.
13.    Sekali  lagi  saya  mengucapkan  terima  kasih kepada
Pioneer Technology (Malaysia)  Sdn.  Bhd.  kerana  menjemput
saya  ke  majlis  ini.    Dengan  harapan  Syarikat ini akan
mencapai  kejayaan,  saya  dengan   sukacitanya   merasmikan
pembukaan Kilang Pioneer Technology (Malaysia) Sdn. Bhd.