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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