Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	TEHRAN, ISLAMIC REPUBLIC OF IRAN 
Tarikh/Date 	: 	04/04/93 
Tajuk/Title  	: 	THE MEETING WITH 
			IRANIAN BUSINESSMEN 



 xcellencies
adies and gentlemen. 

nd Mines f or giving me this opportunity to meet with  you.
ndeed I am privileged to have this dialogue with members of
he Iranian business community who will be assuming a  major
ole in spearheading Iran's drive towards bigger  trade  and
conomic growth. This meeting, I believe marks a significant
ile  stone  in  the  process  towards  greater  economic co
peration and to enhance trade and  investment  between  our
wo  countries.
.  The  move  towards  increasing  economic  liberalisation
f  Iran  is   particularly   significant   to   us.    Such
iberalisation will without doubt contribute towards a  more
rosperous Iran and  provide  the  framework   for   greater
conomic  cooperation  for  the  mutual   benefit   of  both
ountries.
.  
cultural and economic ties, economic and trade  relationship
between the two nations  still  remains  small.   Malaysia's
annual trade with Iran, for example is only  around  seventy
million US dollars  compared  with  the  much  larger  trade
with other countries in the West Asian  region.   A  further
examination of the trade between our two  countries  reveals
that trade is largely confined to petroleum, commodities and
a  few  manufactured  products.   This  situation  does  not
reflect the actual potential that  exists  between  our  two
countries which needs to be exploited.  More visits, both at
the government and private sector  level  are  necessary  to
make us aware of  each  of  her's  economic  potentials  and
opportunities.
4.

interest which could provide the impetus for greater coopera
tion between both countries in the coming years.  Additional
ly, there will be
countries as well in
5.  In
ume a leading role in boosting the economic  growth  of  the
country.  The private sector will continue to assume a major
role while the government will determine  the  broad  policy
thrusts  and  strategies,   the  setting  up  of   necessary
institutions and the maintenance of a favourable environment
for  expansion  and  growth of  private  enterprise.
6.)  The  government  has  also  introduced   the   Malaysia
Incorporateed concept which aims to create an environment in
which the  public  and  private  sector  can  cooperate  and
work together to create a stable business  climate  that  is
free of obstacles. Thus, it will enable the  private  sector
to continue to  be dynamic and aggressive in  exploring  new
business   opportunities  either  in  side  or  outside  the
country.  We believe  that  economic  success  can  only  be
achieved if both the public and the private sector  work  in
harmony.
7.  It  is  noted  that  Iran  has  introduced  measures  to
liberalise its economy and encourage private sector  growth.
This is clear indication that  the  government  of  Iran  is
committed to developing its economy by the same  route  like
other  countries  including  Malaysia,   i.e.  by  welcoming
foreign   investments   in   order   to   overcome     local
entrepreneurial,  financial   and  technological  shortages.
Malaysia is willing to cooperate and share  her  experiences
in the economic field with Iran.    
development  programmes  particularly,  in  developing  Free
Trade Zones,  telecomunication,  housing,  highways,  ports,
resorts, mining activities, as well  as  in  investments  in
manufacturing   and  in  financial,  consultancy  and  other
services.  Malaysian industrialists and entrepreneurs  have,
over the years gained both experience and expertise in these
fields and we are willing to share our respective  expertise
and know-how with Iran.
Ladies and Gentlemen,
9.  As a country, Malaysia is committed to the  principle of
free trade.  We note with concern the possibility of failure
in  the  present   Uruguay  Round  of   Multilateral   Trade
Negotiations.  We also note the increasing trend towards the
formation of trading blocs and  the  creation  of  bilateral
trading  arrangements  involving  developed   countries  and
their  close  neighbours.
10.)These  trends  are  likely  to result in  protectionist
policies, leading to restriction of world  trade,  diversion
of trade away from  countries  outside  the  bloc,  and  the
disruption of the free flows of capital.  Such a  trend  can
have detrimental effects  on  the  economies  of  developing
countries  which have trading and other economic  ties  with
the developed countries concerned.
11.  The detrimental effect of such a trend on our economies
can
those in the South strive to enhance trade and  economic  ex
changes among them. 
concerted drive to enhance
with countries of the South,
ready a number of mechanisms both at multilateral,  regional
and sub-regional levels to facilitate and enhance trade  and
economic links between countries  of  the  South.  One  such
project launched by the G-15 is  the  South  Investment  and
Trade Technology Data Exchange  Centre  (SITTDEC)  which  is
located in Kuala Lumpur.  SITTDEC provides  the  avenue  for
South countries to increase trade, investment and technology
flows among them and I would urge Iran to  become  a  member
and thus be able to utilise the facilities available at  the
Centre.
Ladies and Gentlemen,
12.  The presence of a large number of the prominent members
of the Malaysian business sector  in  my  delegation  augurs
well for the future Iran-Malaysia business and trade.  It is
also
close
countries.
that you will have
Thank you.