Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	ISTANBUL, TURKEY 
Tarikh/Date 	: 	29/09/94 
Tajuk/Title  	: 	THE JOINT BUSINESSMEN MEETING 



  I am pleased to be given  this  op  portunity to  address
distinguished members of the Turkish business and industrial
community.  I commend the organisersfor  the  initiative  to
hold  this function which has brought together the  business
communities  of our two countries to discuss and share views
on issues of common interest in order  to  strengthen  trade
and economic relations between Turkey and Malaysia.
2.   The meeting  here  today  is  opportune  and  marks  an
important step towards closer  relationship  between  Turkey
and Malaysia.   Ties between our two  countries  have always
remained close and cordial.  This  can be attributed to  our
common stand in the various fora such as the United  Nations
and the Organisation of Islamic Conference (OIC).
3.   Although we  have established goo d trade links,  there
is still a lot  more to learn about  each  other's  business
communities.  Our visit here  should facilitate greater flow
of trade between our two countries.
4.   The  volume of rade  between  Turkey  and  Malaysia  has
progressively
increased from US$100 million in 1989 to US$188  million  in
1993.    However,  bilateral trade is still small accounting
for less than one percent of  our  external  trade.    Trade
between our two countries is also confined to a narrow range
of  products  comprising mainly palm oil, natural rubber and
cocoa from Malaysia and iron  and  steel  ingots  and  bars,
vegetables,  electric  power  machines and apparatus, cement
and fabrics from Turkey.  This situation could be attributed
to the lack of direct contacts between  the  businessmen  of
Turkey   and   Malaysia   as  well  as  limited  information
concerning products and market opportunities that  exist  in
our two countries.
5.    Many developing countries and newly emerging economies
over the last couple of years have taken bold steps  towards
market  liberalisation  and  deregulation.    I am sure that
Turkey too has undertaken  liberalisation  and  deregulation
measures to reinvigorate its economy.  Turkey has also taken
steps  to  privatise  its  enterprises.    Malaysia  too has
undertaken similar measures which have resulted  in  greater
trade  and  investment  flows  into  the country, helping to
boost  technological  development   as   well   as   improve
efficiency  and productivity levels.  The liberalisation and
deregulation measures undertaken by developing countries and
newly emerging economies would eventually result in creating
a substantial market in the South, which would  be  able  to
supply  a  wide range of products ranging from raw materials
to products of high technology.
6.   Malaysia has embarked on a concerted drive  to  enhance
trade,  economic  and commercial links with other developing
countries and  newly  emerging  economies.    The  Malaysian
private sector has been supportive of this drive.  They have
established   contacts   and  networks  in  many  developing
countries such as China, Cambodia, India, Papua New  Guinea,
the  Philippines,  Sri  Lanka,  Vietnam, and a host of other
countries which has  resulted  in  greater  flow  of  trade.
Malaysia's  exports  and  imports  to  and  from  the  South
countries in  1993  amounted  to  US$17  billion  and  US$12
billion respectively.
7.      In our effort towards a more focussed programme for
the  South,  the  Malaysian  Government  has  implemented  a
special  programme  of  collaborating  with  General Trading
Companies (GTCs) to  promote  Malaysia's  trade  with  these
countries.    For  this purpose, the Government has selected
three GTCs namely, Edaran Otomobil  Nasional  Berhad  (EON),
Sime  Darby  Berhad  and Kumpulan Guthrie Berhad.   The GTCs
among  others  would  also  identify  possible   competitive
sourcing  of  raw  materials  and  other  inputs required by
Malaysian companies and  promote  the  export  of  Malaysian
services and investment in the South including in Turkey.
8.      On the investment front, Malaysia now encourages its
private sector to venture out and invest overseas.  In  this
connection,  I  am  confident  that  the  current  level  of
cooperation between  our  two  countries  will  continue  to
increase  as  a  result  of  liberal  trade  and  investment
policies adopted by Turkey and Malaysia's reverse investment
policy.  It is therefore important that the private  sectors
of  Turkey  and  Malaysia regularly review the opportunities
and  policy  changes  with  a  view  to  intensifying  joint
ventures and commercial links.
9.    The   Malaysian   private   sector   has  considerable
experience and technical know-how in a number of areas  such
as   manufacturing,   agriculture,  mining,  tourism-related
projects, construction, finance, engineering consultancy and
development  of  infrastructure.     I   am   sure   Turkish
entrepreneurs have also developed expertise and capabilities
in   various  fields.    Hopefully,  Malaysian  and  Turkish
companies could forge some fruitful business links in  these
activities.
10.   According to the GATT International Trade Report 1993,
Malaysia is now the  19th  largest  trading  nation  in  the
world.   In 1993, Malaysia's total imports amounted to US$45
billion.  The rapid pace of  economic  development,  liberal
import  policies  and the increasing affluence of the people
would continue to make  Malaysia  an  important  market  for
foreign  suppliers including from Turkey.  In this regard, I
wish to invite Turkish businessmen to visit Malaysia and see
for themselves the vast trade  opportunities  available  for
their export.  Turkish companies could set up their regional
offices in Malaysia and use Malaysia as their base to launch
their  products  in  the  ASEAN  market.   At the same time,
Malaysia too could offer a wide range  of  manufactured  and
intermediate  products  required by Turkey.   Malaysia has a
broad manufacturing base.    Manufactured  exports  in  1993
amounted  to  US$34  billion  representing 73 percent of our
total exports.
11.  ASEAN, of which Malaysia is a member, is  committed  to
establishing  the  ASEAN  Free Trade Area (AFTA) by the year
2008.  AFTA will be achieved through the  implementation  of
the Common Effective Preferential Tariff (CEPT) scheme under
which  the tariff level will be gradually reduced to between
zero and 5 percent within a fixed time-frame.  The  dynamism
experienced  by  the  ASEAN region and the implementation of
AFTA is expected to further accelerate economic  development
in  ASEAN  countries.    This would also create considerable
opportunities for businessmen within and outside this region
which the Turkish private sector could take advantage of.
12.  Turkey has emerged as an important trading  partner  of
the  central  Asian countries.  Turkey has also made several
efforts to increase the flow of trade  and  investment  with
these  countries.  Besides, Turkey is also committed towards
jointly developing several infrastructure  projects  in  the
central  Asian  countries.    I  believe  that  many  of the
products  and  expertise  required   for   the   development
programmes could be sourced from Malaysia.
13.    Malaysia  regards  the  ratification of the agreement
establishing  The  World  Trade  Organisation  (WTO)   which
incorporates  all the Uruguay Round agreements as crucial in
boosting  business  confidence  as  well  as  enhancing  the
credibility  of the multilateral trading system.  For this,
Malaysia has ratified the WTO Agreement on 6 September 1994.
14.  Malaysia has made substantial  offers  in  the  Uruguay
Round  negotiations  thus  contributing  to  greater  market
access for industrial and agricultural goods.  The scope  of
tariff bindings has increased from one percent to 65 percent
as  a  result of the Uruguay Round negotiations.  Malaysia's
tariff offers now  cover  79  percent  of  Malaysia's  total
imports.   Malaysia's manufactured exports will benefit from
a more than 45  percent  tariff  cut  in  Malaysia's  export
markets.
15.    In  the  area  of  services, Malaysia is committed to
liberalise   64   sectors   and   subsectors   to    foreign
participation.        Malaysia   has   offered   substantial
liberalisation, most favoured nation treatment and  national
treatment.    For example, substantial offers have been made
in  professional  services  including   computer   services,
audio-visual  services, maritime and aviation transportation
services, consultancy and a wide range of business services.
Further  liberalisation  of  the  services  sector  will  be
undertaken  in  a  progressive  manner on a unilateral basis
commensurate with the level of economic development and  the
development of the domestic services sector.
16.    In  accepting  the Uruguay Round results as a `single
undertaking' or as  a  package,  Malaysia  is  committed  to
undertake the obligations pertaining to the improved trading
rules   and   codes  such  as  anti-dumping,  subsidies  and
countervailing measures,  the  use  of  safeguard  measures,
import licensing procedures, customs valuation, sanitary and
phytosanitary  measures  as  well  as  technical barriers to
trade.   Steps are being taken by  Malaysia  to  modify  its
policies and legislations to bring them into conformity with
the  improved  trading rules in the Uruguay Round agreements
which would be enforced by the WTO.
17.  I have with me today a number of prominent  members  of
the  Malaysian  private sector.  They are all, I am certain,
very keen to forge  and  strengthen  further  the  bilateral
trade,   economic   and  commercial  ties  between  our  two
countries.  I am confident that the  business  meetings  and
discussions  that you will have during their stay here would
lead to fruitful results for both our countries.