Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	BUENOS AIRES, ARGENTINA 
Tarikh/Date 	: 	03/10/97 
Tajuk/Title  	: 	THE JOINT LAUNCHING OF THE 
			ARGENTINE EXPORTERS CONFERENCE
			ON ASEAN COUNTRIES 



   1.    First of all, I would like to thank the organisers of
  this  Conference for giving me this opportunity to  jointly
  launch   `The  Argentine  Exporters  Conference  on   ASEAN
  Countries' together with His Excellency President Menem.

  2.    This  Conference  is timely as Argentine  businessmen
  are  now placing an increased focus and importance to trade
  with  Asia,  particularly  the Association  of  South  East
  Asian  Nations or ASEAN, considering the vast opportunities
  that  are generated as the liberalisation process  on  both
  multilateral and regional levels is being undertaken.

  3.    Argentina's continued presence in ASEAN  is  felt  as
  trade  has  exceeded  US$800 million, accounting  for  14.0
  percent  of  ASEAN's  global trade with  Latin  America  in
  1996.  Argentina  was also ASEAN's fourth  largest  trading
  partner in Latin America after Brazil, Mexico and Chile.

  4.    The  recent entry of Myanmar and Laos into ASEAN  has
  turned  this regional grouping into a large entity  with  a
  population  of  480 million and a combined  GDP  of  US$711
  billion.   With this, the ASEAN market is set  for  dynamic
  growth  and  investors are therefore assured of  attractive
  returns.   Malaysia  will  serve  as  an  ideal  base   for
  Argentine  businessmen to locate their  operations  to  tap
  the full potential of an expanding ASEAN market.

  5.    ASEAN  is also moving towards establishing the  ASEAN
  Free Trade Area (AFTA) by the year 2003.  In realising  the
  AFTA,  93 percent of our tariff lines is presently included
  in  the  list  for  AFTA concessions.   Notably,  only  1.4
  percent  out  of  the  total ASEAN tariff  lines  would  be
  excluded  from  tariff reduction for security,  health  and
  religious  reasons.  Currently, 85 percent  of  the  Intra-
  ASEAN trade is already subject to a tariff of between  zero
  to  five  percent  under the Common Effective  Preferential
  Tariff (CEPT) Scheme.

  6.    ASEAN  is also moving towards establishing  an  ASEAN
  Investment  Area which would further promote  the  flow  of
  investments  into the region.  ASEAN has  also  signed  the
  ASEAN  Framework Agreement on Services which would lead  to
  freer  flow of services in the seven priority sectors  such
  as  tourism, construction, telecommunications, finance, air
  and  maritime  transport.  With the  establishment  of  the
  ASEAN   Investment   Area,  tariff   reductions   and   the
  liberalisation  of  services sector, investors  would  have
  greater scope and opportunities.

  7.    I would like to encourage Argentine entrepreneurs and
  investors  to  increase  their business  presence  in  this
  region  by  using Malaysia as a springboard for  production
  and  distribution of their products into the ASEAN  region.
  Argentine  companies can also enter into partnerships  with
  Malaysian  companies  to  venture into  projects  in  third
  countries.

  8.     We  in  ASEAN,  acknowledge  the  dynamism  and  the
  aspiration of MERCOSUR to become a Free Trade Area  by  the
  year  2000.  We are also aware that  MERCOSUR has  recently
  been   expanded  to  include  Chile  and  Bolivia  as   its
  associate members thus enlarging the market to 201  million
  and  a  GDP  of over US$1 trillion as well as a per  capita
  income of US$5,425.

  9.    We  are  confident that the realisation of  plans  in
  MERCOSUR  will  further stimulate the  economic  growth  of
  member countries of the region and that this grouping  will
  adopt an open approach to trade with countries outside  the
  region.    By   adopting   an  open-regionalism   approach,
  regional  groupings such as MERCOSUR and  ASEAN  will  also
  benefit  countries outside their respective regions,  as  a
  result  of  increased economic activity within the  region.
  This  will invariably create greater opportunity and demand
  for goods and services from outside the region.

  10.   It  is  encouraging to note that  Argentina's  global
  trade in the last five years have expanded and recorded  an
  average annual growth of 10.4 percent.  Argentina's  global
  trade  in  1996  was  US$47.6  billion,  representing   9.8
  percent  of Latin America=s external trade.  MERCOSUR,  the
  European  Union, USA and East Asia remained  her  principal
  trading  partners which in total account for  72.9  percent
  of her global trade.

  11.   In  respect of trade with East Asia,  the  volume  of
  trade  between  Argentina and East Asia  had  increased  by
  30.4  percent to US$6.0 billion in 1996 from US$4.6 billion
  in  1995.  The  primary trading partners were the  People's
  Republic   of   China,  Japan  and  ASEAN  which   together
  accounted for 52.4 percent of Argentina's total trade  with
  East Asia.

  12.   ASEAN  economies have registered  high  growth  rates
  over  the  last  10 years. The Malaysian economy  has  been
  growing  at  an  average  of eight percent  over  the  last
  decade  and  the growth is expected to remain  robust  with
  GDP  growth  projected between 7.8 percent to  8.2  percent
  this  year. The per capita income of Malaysia in  1996  was
  US$4,259,  an  increase  of 9.2  percent  over  1995.   The
  average  import tariff in Malaysia is low at  nine  percent
  nominal   and  less  than  seven  percent  trade  weighted.
  Malaysia  also has a low inflation rate, currently  running
  at below four percent per annum.

  13.   Malaysia  is  now the 19th largest exporter  and  the
  17th  largest importer in the world and hope to become  the
  15th  largest  trading nation at the turn of  the  century.
  In  1996, Malaysia's global trade totalled US$157.6 billion
  and  her major trading partners were Japan, Singapore, USA,
  Hong  Kong,  Thailand,  Germany and  United  Kingdom  which
  collectively  account  for  76.0  percent  of   our   total
  external trade.

  14.   At  the  same  time,  Malaysia  has  also  undertaken
  efforts  to  forge greater trade and investment links  with
  the  countries in the South.  In the last five  years,  the
  external trade generated between Malaysia and countries  in
  the  South  has  increased  by  136.4  percent  to  US$13.9
  billion  in  1996 from US$5.9 billion in 1992.  In  efforts
  to  enhance  relations with South-South  countries  and  to
  provide  a  conducive framework for the private  sector  to
  establish  business links, Malaysia has concluded bilateral
  Trade  Agreements,  Investment  Guarantee  Agreements   and
  Bilateral  Payments  Agreements with several  countries  in
  the  South.  I am convinced that the exchange of visits  of
  business  delegation and business contacts of  this  nature
  will  help  to  strengthen  bilateral  trade  and  business
  relations between our two countries.

  15.   Malaysia  has consistently recognised the  importance
  of  long  term  Foreign Direct Investments  (FDI)  for  her
  economic  growth  and  development.   FDI  has  contributed
  significantly to our economic development, particularly  in
  maintaining  the  momentum of growth in  the  manufacturing
  sector.   It  is  for  this reason that  we  are  committed
  towards  creating  an environment that will  provide,  both
  foreign  and  local, investors with the  opportunities  for
  increased   investment,  growth  and  profit.    Malaysia's
  efforts  in  promoting foreign direct investment  into  the
  manufacturing sector have been successful over  the  years.
  From  1992  until July 1997, a total of 4,526 manufacturing
  projects  was  approved  involving  capital  investment  of
  US$53.3  billion.  Of this amount, US$27.2 billion or  50.6
  percent  was  foreign  direct  investment,  reflecting  the
  attractiveness of the Malaysian investment environment.

  16.   The Malaysian Government in promoting the thrust into
  hi-tech  industrialisation,  has identified several hi-tech
  products  and  activities in the area of new  and  emerging
  technologies.    These  include  the  areas   of   advanced
  electronics,   equipment/instrumentation,   bio-technology,
  automation  and  flexible manufacturing  systems,  electro-
  optics    and    non-linear   optics/advanced    materials,
  optoelectronics,  software engineering, alternative  energy
  sources  and aerospace. Interested Argentine companies  are
  particularly  welcomed to invest in these hi-tech  sectors.
  An  attractive  package  of  incentives  are  available  to
  encourage  investment in these hi-tech areas  and  research
  and development activities.

  17.    As   Information  Technology  (IT)  is  a   critical
  component  for  the  future  growth  of  the  manufacturing
  sector  and the Malaysian economy, emphasis is laid  on  IT
  industries  in  order  to  ensure  the  sustenance  of  her
  competitive  edge in the emerging digital economy  as  well
  as  to  attract  investments  in  this  sector.  Under  the
  Seventh  Malaysian  Plan (1996-2000),  the  Government  has
  allocated  a  sum  of US$578.0 million (RM1,444.9  million)
  for computerisation of public sector projects.

  18.   As  you  are  also aware, Malaysia is developing  the
  Multimedia  Super Corridor (MSC) as the perfect environment
  for  world  class  companies wanting to create,  distribute
  and  employ multimedia products and services.  The  MSC  is
  being  developed  as a 15 x 50 km corridor  with  the  best
  possible   physical   infrastructure,  special   cyberlaws,
  policies     and     practices,    world-class     physical
  infrastructure   and  next  generation   2.5-10   gigabytes
  multimedia network.

  19.    The   Malaysian   Government  has   targeted   seven
  multimedia  applications  for initial  development.   These
  flagship    applications    are   electronic    Government,
  telemedicine,  smart schools, national  multipurpose  card,
  R&D  clusters, world-wide manufacturing webs and borderless
  marketing  centres.   The Government is seeking  assistance
  from  leading local and international companies to  develop
  and  implement  these applications in the MSC  to  catalyse
  the   development  of  a  highly  competitive  cluster   of
  multimedia  or  IT companies that will become  world  class
  over time.

  20.   Malaysia  has always adopted a pro-business  approach
  in   its  development  policies.   We  have  a  clear   and
  transparent  set  of guidelines to facilitate  investments.
  They   range  from  liberal  equity  conditions,   flexible
  expatriate  employment policies, liberal  exchange  control
  regulations  and  tax  reliefs  and  concessions.   Foreign
  investors  are  allowed to own 100 percent  equity  if  the
  projects  are for 80 percent export and above.  In addition
  to   the   liberal  investment  policies,  Malaysia  offers
  attractive  tax incentives which provides full  or  partial
  tax  reliefs  from corporate tax, now at 30  percent.   Tax
  incentives are also provided for reinvestments by  existing
  companies  in  the  form  of  a  60  percent  allowance  on
  qualifying capital expenditure.  The package of fiscal  and
  non-fiscal  incentives  provided  has  been  an  attractive
  inducement to FDI.

  21.   In  the  last five years, trade between Malaysia  and
  Argentina  continued to increase annually on an average  of
  28.3  percent to US$351 million in 1996 from US$101 million
  in  1991.  The  balance of trade have been  in  Argentina's
  favour.  This  is  not  a matter that  both  our  countries
  should  be  concerned with. Both countries  especially  the
  businessmen  must work towards increasing  the  quantum  of
  trade to a much higher level.

  22.   Currently,  the exports of natural rubber  and  latex
  constitute  28  percent  of  Malaysia's  total  exports  to
  Argentina,    and    manufactured    products    such    as
  telecommunications  equipment, air-conditioner  components,
  articles  of apparel and clothings and office machines  are
  beginning  to  feature  prominently  as  they  collectively
  amounted  to  47.7 percent of our exports in  1996.   As  a
  matter   of  fact,  a  number  of  Malaysia's  manufactured
  exports  are  already  of  world  class  quality.    Today,
  Malaysia  is  the  world  leading  exporter  of  room  air-
  conditioner  as  well  as  a  leading  global  producer  of
  semiconductors,   latex  examination   gloves,   catheters,
  rubber threads and audio-visual equipment.

  23.   I  am  also happy to note that the Malaysian national
  car,  Proton,  has gained entry into the Argentine  market.
  Malaysia has been producing its own national cars  for  the
  past  13  years  for  both the domestic  and  international
  markets.   Currently,  Proton is exported to  46  countries
  and  the  leading  markets are  United Kingdom,  Singapore,
  Germany,  Australia  and Belgium. The  automotive  industry
  has    subsequently    developed   Malaysia's    supporting
  automotive  components  sector,  particularly  rubber-based
  components,   which  in  recent  years   have   experienced
  significant increases in export performance.

  24.    Certainly,  there  is  a  considerable   scope   for
  expansion   of  bilateral  trade  and  investment   between
  Argentina  and  Malaysia.  Given the numerous opportunities
  for  trade  and investment in our two countries, I  believe
  the  time  has come for us to foster strategic linkages  in
  order  to  create partnerships in economic development  not
  only at bilateral but also at regional and global levels.

  25.   Further,  existing  Malaysian  port  facilities  were
  upgraded  and  new port facilities were developed  to  meet
  the  accelerated increase in demand by trade and  industry.
  Focus  was  also  placed on improvements in efficiency  and
  productivity of port operations through rationalisation  of
  processes  and  procedures for cargo  clearance.   The  new
  Kuala  Lumpur International Airport (KLIA) which will begin
  operation  in  the  first quarter of 1998,  will  have  the
  capacity  to  handle one million tonnes  of  cargo  and  25
  million  passengers.   Hence, with the  upgrading  and  the
  increasing  efficiency of Malaysian ports and the  upcoming
  Malaysian  new  international airport, I believe,  Malaysia
  would  be  able to serve its best facilities  to  Argentina
  for  doing  business with not only Malaysia but  also  with
  the ASEAN region.