Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	SHANGRI-LA MAKATI, MANILA 
Tarikh/Date 	: 	23/11/96 
Tajuk/Title  	: 	THE MANILA DIALOGUE  


   
    1.     First   and  foremost,  let  me   thank   the
    organisers,   the  Asian  Strategy  and   Leadership
    Institute  (ASLI),  Pacific Basin  Economic  Council
    (PBEC),  Malaysia Member Committee  and  the  Makati
    Business   Club  for  inviting  me  here  today   to
    officiate  the  Manila Dialogue and  to  launch  the
    Philippines-Malaysia Business Council. Indeed, I  am
    very  happy to be back here in this vibrant city  to
    meet up with old friends and to renew acquaintances.
    
    2.    The  Philippines  like Malaysia  is  currently
    undergoing  tremendous  economic  development.    As
    such, this Dialogue is appropriate, not only because
    Manila  will host the forthcoming APEC Summit  which
    will bring together 18 Heads of Governments from all
    over  the Pacific Region, but also because bilateral
    ties  between our countries' have improved so  much.
    I  have  high hopes that this Dialogue will  further
    enhance  business  and economic cooperation  between
     our two nations.
    
    3.    Both  Malaysia and the Philippines share  many
    common   experiences as well as cultural influences.
    Not only are our people of common stock and practise
    Asian  values,  both our countries  have  also  been
    colonised by Western powers in the past.  Since  our
    independence, we have also actively pursued  efforts
    to  establish  regional organisations such  as  ASA,
    MAPHILINDO and of course, ASEAN.  The fact that  the
    Association of Southeast Asian Nations (ASEAN)  will
    celebrate its 30th anniversary next year, serves  as
    a  vivid  example to the world community that  unity
    and  close  friendships can exist  in  a  region  of
    diverse  interests  if  the countries  involved  are
    seriously prepared to work together for the good  of
    the  region  despite  their  differences.   On  this
    basis,   Malaysia  as  host  to   the   1997   ASEAN
    Ministerial Meeting (AMM) is hopeful of bringing all
    the  ten  Southeast Asian countries  together,  thus
     realising ASEAN's original aspiration of becoming an
    organisation which truly represents the interests of
    the whole of Southeast Asia.  Without the membership
    of  Cambodia,  Laos and Myanmar ASEAN would  not  be
    complete.   With  the ten Southeast Asian  countries
    together  we will form a community with  a  combined
    population  of  500  million, bigger  in  fact  than
    Europe or North America.  We may not be as rich, but
    the  potential  will be tremendous.  We  will  be  a
    significant player in Asia and in the world.
    
    4.     As  for  Malaysia's  relationship  with   the
    Philippines,  it has not always been  smooth-sailing
    or  without hiccups.  We have our differences but  I
    am happy to note that as both our Governments try to
    understand  each other's viewpoint, we are  able  to
    maintain  a  firm  control  on  the  situation,  not
    allowing   any   misunderstanding  to   hamper   the
    relationship.   The  reverse in  fact  has  happened
     whereby  our  bilateral ties  have  not  only  grown
    stronger  but  we  have  also  developed  a   better
    understanding and respect for each other.  We cannot
    change  the past but we can work together  to  shape
    our  countries' future direction to  bring  our  two
    nations even closer.
    
    5.    Apart  from  diplomatic  ties,  the  Malaysia-
    Philippines economic relationship has also  improved
    vastly.   Many  analysts  say  that  the  Philippine
    economy  is  not only gaining strength but  is  also
    likely  to  join  the  league  of  the  Asian  tiger
    economies before the end of this century.   Malaysia
    agrees  with  this perception.  Given the  country's
    gross  national  product growth of  2.8  percent  in
    1993,  5.3 percent in 1994, 5.7 percent in 1995  and
    expected to reach 7.5 - 8.0 percent in the next  two
    years, the Philippines is indeed a country to watch.
    All  of us are aware that the Philippine economy has
    undergone landmark changes during the leadership  of
     President Corazon Aquino and President Ramos.  Under
    their   tenure,  tariff  reforms  were  implemented,
    foreign-exchange  restrictions  lifted  and  foreign
    investment  laws liberalised.  As a result,  foreign
    investors,  including  those  from  Malaysia,   felt
    encouraged  to  venture more  extensively  into  the
    Philippines economy.
    
    6.    Malaysia is well aware of the many  advantages
    of   doing   business  with  fellow  ASEAN  members,
    including  the Philippines. The Malaysian Government
    encourages its business community to undertake  more
    joint-ventures  and investment projects  with  their
    Filipino counterparts.  The setting up of the Proton
    assembly  plant  in  Pangasinan and  other  economic
    endeavours by Malaysian investors in the Philippines
    are  a  clear  demonstration of  Malaysia's  sincere
    commitment to be involved in the country's  economic
    progress.   Data  from  the  Philippines  Board   of
    Investment  (BOI)  showed  that  Malaysia  was   the
     biggest Southeast Asian investor in the country with
    4.23  billion  pesos  or RM423 million  invested  in
    1994.   The bulk of these investments went to  power
    generation   and   property   development.    Today,
    Malaysian   investments  in  the  Philippines   have
    increased  further to cover areas such as insurance,
    banking, transport, telecommunications, aviation and
    energy.   Our investments are driven mainly  by  the
    `competitive   cost'  of  investing,   skilled   and
    comparatively  lower  cost  manpower  as   well   as
    incentives  offered  by  the Philippine  Government.
    Furthermore,  the  country  has  also  drawn  up   a
    blueprint - the Philippines 2000 Plan - for creating
    an  industrialised nation by the end of the  decade.
    Malaysia applauds Manila's vision and we believe  it
    will  create an ideal environment to attract foreign
    investors.   In  this  connection,  it   is   indeed
    opportune for the Philippine Government to host  the
     APEC Summit as foreign corporations need to see  for
    themselves the remarkable progress Manila  has  made
    in  the  past  few years and to note  the  country's
    efforts in upholding APEC's goals of trade promotion
    and investment liberalisation.
    
    7.    Having  stated this, the Malaysian  Government
    and  business community would also like to extend  a
    warm  invitation  to  the  Filipino  businessmen  to
    invest in joint-ventures with local companies in all
    sectors   of  the  Malaysian  economy.    In   1995,
    approximately  RM11.5 million was  invested  by  the
    Philippine  business community in  various  economic
    sectors  in  Malaysia.  We expect the figure  to  be
    much  higher  this  year as the Malaysia-Philippines
    Business  Council  was launched  in  July  1995  and
    following   upon   this   the   Philippines-Malaysia
    Business   Council   will  be  launched.    Malaysia
    entertains high expectations of the ability  of  the
     two  councils to promote greater awareness among the
    private sector concerning the many potentials  which
    exist  in  the areas of commerce, trade,  investment
    and  tourism.  Furthermore, the Philippines-Malaysia
    Joint  Commission  for Bilateral  Cooperation  which
    meets  biennially is also expected  to  be  able  to
    assist Kuala Lumpur and Manila to focus on improving
    certain  areas  of  cooperation such  as  trade  and
    investment,   air   services,   fishing,   shipping,
    agriculture, tourism, other basic industries as well
    as consular, political and cultural matters.
    
    8.   Malaysia's Vision 2020 and the Seventh Malaysia
    Plan    will   provide   business   and   investment
    opportunities   for  both  Malaysian   and   foreign
    investors.   Malaysia continues  to  maintain  open,
    transparent  and  market-oriented  systems  with   a
    business-friendly  Government.    Our   concept   of
    Malaysia Incorporated is a proven winner and  a  key
     factor  behind  Malaysia's economic  transformation.
    Filipino  and other foreign investors  will  find  a
    conducive operating environment in Malaysia.
    
    9.    Within the ASEAN context, there are also ample
    opportunities   for   mutual  economic   development
    between  Malaysia and the Philippines.  For example,
    the  East  ASEAN  Growth  Area  (EAGA)  which  links
    Malaysia,  the  Philippines, Indonesia  and  Brunei,
    aims  to  create an environment of borderless  trade
    and investments and to develop the region as well as
    individual   country's  economy   through   business
    partnerships.  While the development of cross-border
    trade  will be the thrust of this partnership, other
    economic sectors such as tourism, shipping and  land
    development  can be promoted to enhance  the  growth
    area.  In this regard, Malaysia looks forward to  be
    more involved in trade and investment activities  in
    Southern  Philippines,  in  particular  in  Mindanao
     which  is fast developing into a major international
    trade, agro-industrial and service centre.  The EAGA
    is destined to be a new regional power house.  There
    is  scope  for  greater business  collaboration  and
    economic cooperation.
    
    10.    Apart  from  the  EAGA,  Malaysia   and   the
    Philippines are also involved in the setting  up  of
    the  ASEAN  Free  Trade Area (AFTA) with  our  other
    ASEAN  partners.  The creation of a free trade  area
    in  ASEAN  would  make  the  member  countries  more
    attractive  to  foreign as well as local  investors.
    However,  to  make  AFTA  a  success,  we  must   be
    committed to meet deadlines set for tariff reduction
    and  trade  liberalisation.   While Governments  can
    provide a conducive environment for enhancing  trade
    and   investment,   it  is  the   private   sector's
    initiative that will ensure the success of AFTA.   I
    strongly  believe that if the AFTA  concept  can  be
    successfully implemented, it will undoubtedly  usher
     in  a greater trade flow among the ASEAN members  as
    well  as  from  countries outside the grouping.   We
    should  take  advantage of the different competitive
    advantage which each has in order to complement each
    other and share the benefits.
    
    11.   In  the midst of rapid development,  both  our
    countries  must seize the opportunities to establish
    a stronger and deeper relationship.  In the field of
    trade,  Malaysia offers the Philippines vast avenues
    for  the exportation of goods into Malaysia, in line
    with  our  intention  to diversify  import  sources.
    Similarly, the Malaysian business community is  also
    keen  to invest more in the Philippines which offers
    a  large pool of skilled manpower as well as a large
    market  for  Malaysian goods.  As  such,  we  should
    collaborate  and  work  together  more  closely   to
    develop  our  bilateral ties,  benefiting  from  the
    partnership through the sharing of our strengths and
     uniqueness. I am confident this Dialogue will  bring
    about    concrete    discussions    on    investment
    opportunities among our two business communities and
    that  further  action  will be  taken  to  translate
    potentials  into actual business transactions.   Let
    us  look  with  optimism  at  our  relationship  and
    continue  to  build  upon a firm  foundation  for  a
    better  and closer partnership in the future.   What
    is  important is that we meet regularly  to  improve
    communication  and exchange views.   Such  dialogues
    will  foster  better  understanding  and  allow  the
    relationship  to  move  forward  towards  the   21st
    Century.  The New Southeast Asia that will emerge in
    the   21st   Century  will  be  enriched   by   such
    interchanges.  I do hope that as we look towards the
    new  millennium,  we  in Southeast  Asia  will  have
    renewed  confidence and faith in  our  abilities  to
    become  global players in the economic  as  well  as
     other  fields.   No longer should ASEAN  be  a  mere
    bystander.   We have arrived and we in ASEAN  should
    stand up to be counted.
    
    12.   On  this  note,  I  take  great  pleasure   to
    officially declare open the Manila Dialogue.
  



 
 



 
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