Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	ACCRA, REPUBLIC OF GHANA  
Tarikh/Date 	: 	09/11/96 
Tajuk/Title  	: 	THE BUSINESS LUNCHEON HOSTED 
			BY MATRADE  

  

1.    Let  me first of all say how happy I am to be here today
in  Accra  and  to  be given the opportunity to  address  this
gathering  of prominent members of the Ghanaian and  Malaysian
business  community.  A meeting such as  this  enables  us  to
discuss and exchange views on matters of common interests  and
eventually  contribute towards the strengthening of  bilateral
relations between our two countries.

2.    This is the first official Malaysian business delegation
to  visit  the Republic of Ghana.  I believe there  were  many
reasons for the relatively low level of bilateral relations in
the  past.   However,  with  the globalisation  of  the  world
economy,  a  whole new chapter in relations among  nations  is
being  established.  It is our desire that bilateral relations
between  the  Republic of Ghana and Malaysia  be  upgraded  by
enhancing trade and economic cooperation between our  business
communities.   This can be further strengthened  later  on  by
more  frequent exchanges of visits, both at the  official  and
business sector levels.

3.    The Republic of Ghana and Malaysia both subscribe  to  a
free market system, where private enterprise assumes a leading
role  in the economy.  This meeting of the private sectors  of
our  two  countries is aimed at providing the  opportunity  to
discuss and map out strategies for our mutual benefits through
private sector led initiatives.  I am accompanied by about  90
businessmen    who    represent    sectors    like    banking,
telecommunications,     property     development,      mining,
construction, energy and tourism.  They are keen to  establish
business partnership with their Ghanaian counterparts.

4.    This  meeting in Accra, I am sure, will build  upon  the
initial ties established during the two earlier visits in 1995
by  Ghanaian businessmen to Kuala Lumpur, one of which was led
by   the   President  himself.  The  workshop  on  `Investment
Opportunities  in Ghana' which was also held in  Kuala  Lumpur
last  year  had  generated great interest among the  Malaysian
business community.  In this respect, it is heartening to note
that  some business ventures are already being implemented  or
are at an advanced stage of negotiations.

5.   Malaysia has followed with great interest the bold market
reforms and the wide-ranging economic restructuring undertaken
by  the Ghanaian government. The adoption of Economic Recovery
Programme  (ERP)  in  1983  and  the  privatisation  of  state
corporations  under  the Divestiture  Programme  in  1988  has
resulted  in increased output in many sectors of the  economy.
We  are  glad  that these efforts are now bearing  fruit  with
economic growth expected to reach five percent in 1996.

6.   The recent efforts by the Government to make the Republic
of  Ghana the commercial, financial and maritime hub  of  this
sub-region is a move in the right direction.  Malaysia,  which
has always been a trading nation supports this efforts and  we
are  prepared  to  cooperate with the  Republic  of  Ghana  in
establishing meaningful bilateral trade relations.

7.    Bilateral  trade  between  the  Republic  of  Ghana  and
Malaysia,  although  small in relation  to  Malaysia's  global
trade  has  been  growing steadily.  Between  1990  and  1995,
bilateral  trade  grew on average by 60.3 percent  per  annum,
reaching  US$6.6  million last year compared with  just  about
US$700,000  five  years  ago.  During this  period  Malaysia's
exports  to the Republic of Ghana expanded by about 60 percent
each year to reach US$3.9 million in 1995.  On the other hand,
Malaysia  imported some US$2.7 million worth of products  from
the  Republic of Ghana last year.  About 35 percent  of  these
imports were made up of raw materials.

8.    The  present  level of trade and  the  narrow  range  of
products  traded  does  not reflect  the  true  potential  for
bilateral  trade  between  our  two  countries.    I  strongly
believe  that  there is considerable scope  for  expansion  of
bilateral  trade.  While Malaysia can be a competitive  source
of  imports  for  Ghana's growing economy, the local  business
community here should also explore ways of exporting  more  of
Ghana's products to Malaysia.  The business community from our
two countries should not be constrained by the myth that trade
cannot  occur and grow among developing countries  like  ours.
Malaysia's  exports to countries of the South rose  from  12.2
percent in 1990 to 16.5 percent of total exports in 1995, thus
disproving  this notion. I urge you, ladies and gentlemen,  to
prove that trade between the Republic of Ghana and Malaysia is
not only possible but can also grow rapidly.

9.     Malaysia   advocates  greater  South-South  cooperation
through trade among developing countries who share the  common
aspiration  of  self-reliance.  It is  also  our  belief  that
members of the South countries should work together to improve
their  condition through mutually beneficial trade  and  other
economic activities.  Malaysia, therefore, actively encourages
its  private sector to trade and to invest in other  countries
of  the  South  in  order to contribute  indirectly  to  their
economic  development.  Malaysian companies have responded  to
this call, and it is in this spirit that Malaysian businessmen
are here today in the Republic of Ghana.

10.   Malaysia's development experience has shown that one  of
the  prerequisites  for sustained economic  take  off  is  the
development  of an adequate and efficient infrastructure.   It
is  therefore fitting that the Republic of Ghana is  targeting
to upgrade its communications facilities and power generations
to   support   other  economic  activities  in  the   country.
Malaysian companies have successfully ventured into the  South
markets  and  accumulated considerable experience  in  highway
construction, housing and hotel development, power supply, oil
and  mineral exploration and telecommunications.  Malaysia  is
prepared  to  share  her experience in these  areas  with  the
Republic of Ghana. Malaysian businessmen who are present  here
today are also keen to invest directly in the 53 projects that
are  being  privatised by the Ghanaian authorities or  acquire
equity  in  the  69  enterprises  that  are  open  to  foreign
participation.

11.   Malaysia's  globalisation strategy also  encourages  its
industries to relocate in countries of the South where  viable
and  appropriate.  Malaysian  industries  are  moving  to  new
locations  in  search of resources and factors  of  production
which   are  abundant  and  competitively  priced.   Malaysian
companies have also successfully ventured worldwide  into  the
services  industries like banking, mining and tourism  related
projects.   This  meeting today should also  be  viewed  as  a
platform  for the private sector in both countries to  explore
the   possibility  of  going  into  downstream   manufacturing
activities,   utilising  locally  available   resources   like
minerals, timber and other agricultural products.

12.   Apart  from  exploring the economic  potential  in  each
other's  country, the Ghanaian and Malaysian  private  sectors
should  also  explore opportunities for cooperation  in  third
countries.   We  should  focus  our  attention  on  the  newly
emerging markets in the West and Central African region  where
Ghanaian   and  Malaysian  enterprises  could  combine   their
individual resources and experience.  For example, they  could
seek  joint  ventures  to  import,  warehouse  and  distribute
Malaysian  manufactured products in Ghana, its neighbours  and
other land locked markets in Africa and similarly export these
countries' products via Ghana.

13.   The Republic of Ghana and Malaysia have already  put  in
place the necessary framework to enhance business and trade in
the  form  of  a `Trade Agreement', and `Economic,  Technical,
Scientific   and  Cultural  Cooperation  Agreement'   and   an
`Information  Cooperation  Agreement'  which  were  signed  in
Malaysia  late  last year.  Further to this, the  bilateral  `
Agreement  for  the  Promotion and  Protection  of  Investment
between  the Republic of Ghana and Malaysia' is to  be  signed
during  this  visit. These agreements represent the  sincerity
and  commitment  of our two nations to cooperate  and  promote
bilateral  economic relations.  Now, it is  the  turn  of  the
private sectors of the Republic of Ghana and Malaysia to  take
advantage of these agreements and to turn these aspirations of
our  two governments into reality.  I therefore, urge both the
Ghanaian  and  the  Malaysian business community  to  identify
areas  of  cooperation which they could undertake  for  mutual
benefits.

14.   In  the  spirit of South-South cooperation, Malaysia  is
prepared  to  share  its experience in privatisation,  foreign
investment  promotion and economic development  planning  with
the   Republic  of  Ghana.   Under  the  Malaysian   Technical
Cooperation  Programme (MTCP) in Malaysia,  many  participants
from  the  South countries, including the Republic  of  Ghana,
have   been   exposed  to  relevant  areas  of  training   and
experience.

15.   The  Ghanaian  people have shown strong  resilience  and
capability  in  achieving  economic recovery  within  a  short
period.   I  am confident that the foreign business  community
will  view the recently introduced Privatisation Act  and  the
setting  up  of  the  Ghana  Investment  Promotion  Center  as
affirmative   actions  towards  creating  a   more   conducive
investment  climate in this country.  I am  certain  that  the
Malaysian  business community will also respond positively  to
the initiative taken by the Ghanaian Government.

16.   Lastly,  I  urge the Malaysian business community  doing
business  in the Republic of Ghana to take a longer term  view
of  their  business  interests in this  country  and  seek  to
establish lasting business relationships that are reciprocally
beneficial.   They must always take care to be good  corporate
citizens sensitive to the aspirations of this country.   I  am
certain  the  Republic of Ghana will continue  to  create  the
necessary environment to make this country an attractive place
to do business.