Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE KUALA LUMPUR HILTON 
Tarikh/Date 	: 	08/02/82 
Tajuk/Title  	: 	THE 5TH JOINT ANNUAL CONFERENCE OF 
			MAJECA/JAMECA 




Mr. Chairman; His Excellencies; Honourable Ministers and Deputy
Ministers; Distinguished Delegates; Ladies and Gentlemen.

It is a great pleasure and honour for me to be given this opportunity to
address such a distinguished gathering of industrialists and businessmen
from Japan and Malaysia.

To our Japanese guests, I take this opportunity to extend to you all a
very warm welcome. I hope you will take time off to tour Malaysia so that
you will know how adequate are the facilities, particularly those outside
Kuala Lumpur, for the purpose of your investment, if that is what you
intend to do. At the very least, you may notice how good a tourist
destination Malaysia can be.

to be amongst so many old friends today and hope to be able to meet some
of you after the opening session.

3. Japan is Malaysia's biggest trading partner as well as an important
investor. It is only appropriate that the business leaders of the two
countries should get together regularly for the purpose of exchanging
views and seeking answers on bilateral matters which normally confront two
trading partners. For the Japanese, who are known for their experience in
trade, I am sure that the problems which confront you with regard to trade
in Malaysia are insignificant compared to those you have with other
countries. With understanding, there should be no problem in overcoming or
appreciating the policies and practices which give rise to these issues.

4. You may be aware that lately I have been exhorting Malaysians to
emulate the Japanese, particularly in work ethics and ethical values. This
re-orientation is crucial at this juncture in the development of this
country. I can speak on behalf of the Malaysian Government and the
business community in this country that we have all the basic ingredients
that will make it possible for Malaysia to become an important
industrialised country in Asia after Japan and South Korea. We have for a
long time been looking West, as did Japan in the early days of her
development.

But, the West is no longer a suitable model. They have lost their
drive. They still want the good life but are not prepared to face the
realities of a world market, which they can no longer
dominate. Consequently, if we emulate them we will land ourselves in the
quagmire they are in without ever passing through the golden period that
they went through.

Japan may be classified as developed but it is still developing
vigorously. As such it is a much better example for developing Malaysia.

5. We have come to realise that the basis of your rapid development is
your sense of commitment and your continued willingness to work. Thus,
when we ask Malaysians to look East, it is not so much your living
standard that we are thinking about. That will come when we reach the
stage of development that you are in. What we are interested in is your
work ethics. That is what we are after, although there are many other
things about Japan and the Japanese that are worth learning about.

6. In pursuit of the ethics and knowledge, we have decided to invite
ourselves to Japan. We hope that, among other things, Japan will be
willing to accommodate our students.

We are not thinking of academic studies in your universities, although
obviously some Malaysians would be asked to get Japanese academic
qualifications. More relevant to our needs is the training opportunities
in your business and industrial establishments. We understand that most
big Japanese firms have training facilities. We would like, if you agree,
to get a few places in these facilities.

Alternatively, we would like our people to be taken in for training in the
day-to-day running of your factories and business houses. We will be
providing scholarships, of course, but any form of assistance and support
from the Japanese business community will be appreciated. I would like to
emphasise again that it is not just skills we are after, but more
importantly, the correct attitude to work, including the sense of
belonging, which breeds loyalty.

7. I believe that the benefit of such a programme will not accrue only to
Malaysians. The benefit would certainly be mutual. Indeed, I believe that
the result of closer Japan-Malaysia cooperation will be felt by the whole
region in one way or another. The economic prosperity of a nation
invariably spills over and the results are predictable.

8. It is our firm belief that Malaysia is on the verge of a very
significant economic expansion. All the ingredients and indicators are
there. The world recession we are facing must end sooner or later. We
intend to be prepared for the turnaround. Here, we need friends to help us
prepare the 

Ladies and Gentlemen, 

9. Malaysia is, as you know, a parliamentary democracy that believes in a
market economy to stimulate economic growth and social
development. Admittedly we have certain policies that impose particular
obligations but these are less onerous than those found in other
economies. There is no such thing as an absolutely free economic system,
as the Japanese who do business with the United States and Europe must
surely know. But, Malaysia believes much more in economic interdependence
than perhaps most others. That is why we are members of ASEAN and why we
promote ASEAN cooperation with third countries. At the same time, we have
close bilateral relations with a large number of countries. Japan is one
of the major countries with which we have close economic cooperation.

10. We are not listed as the Pacific Community but the fact still remains
that Malaysia and Japan are countries of the Pacific Rim. This vast area
is predicted to be the growth area of the world, replacing the Atlantic
shores. Malaysia and Japan, therefore, share a common economic destiny.

Although we differ in terms of ethnicity, language, history, tradition and
culture, there is sufficient commonality in terms of political philosophy
and economic thrust that cooperation would be easy to achieve. Indeed, it
is not impossible to establish mutual friendship at Governmental as well
as the peoples' levels.

11. In the economic field, our relationship has grown even
stronger. Although the economy of Japan is beyond comparison where
Malaysia is concerned, the two economies are nevertheless similar in some
respects. For instance, our two economies are vigorous and pointed in the
same direction. The annual volume of trade between the two countries has
reached more than $11,800 million ringgit in 1980 and is expected to
increase further annually. Given this growing and diversified economic
relationship, it is almost inevitable that problems arise from time to
time.

But, Malaysia and Japan can take pride in being able to handle difficult
issues through close and persevering bilateral consultations. I am
confident that increased mutual understanding will enable us to resolve
any problem amicably.

12. As a major world economic power Japan, no doubt, feels a certain sense
of obligation to the rest of the world, especially to developing countries
like Malaysia. But, as everyone knows the obligation pays. A prosperous
Malaysia will make a better customer and trading partner for Japan.

We are happy that Japan is cooperating closely with the industrialization
programme of Malaysia. Of course, Malaysia has to pay for the cooperation,
but this is a fact of life that we must accept. We hope, however, that the
price will not be too high; certainly, it should be within our reach. The
time is fast approaching when certain industries for a number of reasons
will no longer be suitable for siting in Japan. By siting or resiting
those industries in Malaysia, Japan will continue to reap the profits from
these industries, instead of having to abandon them altogether. We
appreciate the Japanese willingness to accommodate Malaysian policies,
particularly with regard to taking minority shares. We find that the first
question other investors ask is whether they will have controlling
interest, reflecting of course their belief that Malaysians are not quite
suitable for running industries. It is because of this that Japanese
investments in Malaysia are bigger. The fact that they are also successful
only indicate that our policies are not in any way harmful. I am sure that
MAJECA will play a greater role in explaining Malaysia-Japan business
relations and also Malaysian policies, so that the cooperation and
complementation between Japan and Malaysia will achieve greater heights.

13. I would be failing in my duty, if I do not offer any suggestions to
you regarding training of Malaysians in Japan. We are short of skilled
manpower and our vocational training schools cannot meet the demand. We
need to widen the range of skills being taught, and improve the quality of
teaching so that we can produce higher grades of skilled craftsmen. At the
same time, we want our trainees to internalise a new attitude and
discipline towards work, as I have mentioned earlier.

14. At the level of technical education, we also need to widen the range
of skills being taught, and also to adjust training methods to the
practical aspects, with less emphasis on theory. We also need to ensure
that theoretical training, and practical classroom work, is sandwiched
with periods of activity in commercial and industrial concerns, so that
work experience enhances the ability for practical application. As I have
said, we are short of training facilities and competent teachers in
technical subjects. We also need to create the necessary corp of
industrial and commercial managers from graduates of our vocational and
technical schools as well as higher institutions. We seek 

15. I suggest that the Japanese authorities along with Japanese companies,
identify the facilities that they have and in what way, they can be of
assistance to Malaysia in helping us to fulfil our needs. The Malaysian
Government has already set up a Committee to identify students to be sent
to Japan and the first batch of students are now undergoing a six-month
intensive Japanese language course at the MARA Institute of Technology.

16. I am sure that if Japan were to open the doors of their training
institutions to Malaysian students and assist us in the training of our
work-force, we would together be laying the foundation for an enduring and
meaningful cooperation between our two countries. In doing so, we would be
inculcating in our leaders of tomorrow a better understanding and
appreciation of the mode of conduct, culture and thought processes of the
Japanese and Malaysian people, thereby creating a positive climate for
future business activities and various forms of cooperation.

17. As I indicated earlier on, there is much we can learn from the
Japanese business experience: from why Japan is No. 1 today. As I see it,
the important lesson to be learnt is that, to be truly successful, it is
not enough for a nation to be naturally well endowed with rich resources
or to have the capacity or capability to produce goods, be they raw
materials or manufactures. Our Japanese friends have shown us that the
effective packaging and marketing of these products at competitive prices
are vitally important. I think it is this extra quality coupled with hard
work, that has made the Japanese sogoshosha so very successful.

18. I realise, of course, that the success story of the Japanese
sogoshosha is embedded deep in history and tradition, and reflects the
very essence of the Japanese business way of life. It must not be
forgotten that the Japanese sogoshosha is unique and it will be a disaster
for anyone to imitate it wholesale. As many of you already know, our
business community has begun to organise itself into mutually reinforcing
groups with a view to not only selling more effectively what Malaysia has
to offer the world but to "create" more trade for and investment in
Malaysia as well. These so called Malaysian "sogoshosha" are intended to
form a vital link between production and investment in Malaysia on the one
hand and the world markets as well as international capital and knowhow on
the other.

I welcome this new development. Indeed, it is long overdue.

It is high time that our businessmen go international and venture to where
the markets are, instead of waiting for the markets to come to them. For
our part, the Government will be supportive of this new spirit; while
these new institutions must stand on their own feet, the Government will
be positive in its approach to ensure that those which have been longer in
this game do not thwart their growth and natural evolution. As in many
other areas, I see a vast potential for close cooperation for mutual
benefit between these emerging international trading companies and the
Japanese sogoshosha, the majority of which already have business dealings
in Malaysia. There is much our businessmen have to learn about the methods
and techniques of international trade and marketing. Our infant sogoshosha
will need to put into place an efficient organisation and infrastructure
to enable them to function effectively. The Japanese sogoshosha can assist
their Malaysian counterpart by smoothening their lengthy period of
learning, especially in avoiding the "childhood diseases".

19. I see that many among our Japanese friends present here this morning
represent the top executives of some of the major Japanese sogoshosha. To
you, I ask that you look at our modest Malaysian effort positively. I am
sure there is much that both sides can benefit through cooperation, from
training in the skills of managing a sogoshosha to the sharing of market
information for mutual benefit. Towards this end, I hope you will devote
some of your time to this very important area of human relations and where
practicable, work out definite schemes of cooperation that will strengthen
the business ties between Japan and Malaysia. Through this cooperative
effort, I am hopeful that there will emerge for us in time,
characteristically Malaysian trading institutions that we can proudly
style as 

20. As you are aware, the formation of the Malaysia-Japan Economic
Association was the outcome of the exchange of views in August 1977
between Mr. Fukuda, the former Prime Minister of Japan and Tun Hussein
Onn, the former Prime Minister of Malaysia. Both shared the view that one
of the best means of promoting close cooperation and friendship between
the two nations was to establish a forum through which the business
communities of the two countries can make direct personal contacts with
each other.

21. The presence of this big and high powered delegation from Japan shows
that the work of the Malaysian association, along with that of JAMECA, is
being given full attention by member companies. I am indeed very happy
with this development which, over these years, has grown stronger than
ever. My special thanks, therefore, must go to my friend, Dr. Shigeo
Nagano, for his untiring efforts in promoting good relations between
Malaysia and Japan. My thanks too to Yang Mulia Raja Tan Sri Mohar,
President of MAJECA, and his team of Executives for having kindly invited
me to declare open the Conference.

Ladies and Gentlemen.

22. On this note, I now declare open the 5th Joint Annual Conference of
the Malaysia-Japan Economic Association and its counterpart, the
Japan-Malaysia Economic Association.

Thank you.