Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE REPUBLIC OF MALAWI 
Tarikh/Date 	: 	02/05/97 
Tajuk/Title  	: 	THE MALAWI-MALAYSIA BUSINESS MEETING 



   1.    Let  me  first  of all thank the Malawi  Chamber  of
  Commerce  and  Industry for giving me the  opportunity  to
  address  this important gathering of prominent members  of
  the  Malawian and Malaysian business community.   I  would
  also   like   to  take  this  opportunity  to  thank   the
  Government  of  the  Republic  of  Malawi  for  the   kind
  invitation  to visit this beautiful country and  the  very
  warm welcome extended to me and my delegation.
  
  2.    I  am  indeed delighted to be here today in Blantyre
  and  greatly  honoured to be able to share my thoughts  on
  how  we  can  further  enhance  Malawi-Malaysia  bilateral
  economic  and trade cooperation.  A meeting such  as  this
  is  important  as  it enables us to discuss  and  exchange
  views  and identify areas of common interests which  could
  eventually  contribute to the strengthening  of  bilateral
  relations between our two countries.
  
  3.     This  is  the  first  official  Malaysian  business
  delegation  to  the Republic of Malawi.   Many  historical
  and   geographical  reasons  may  be  the  cause  of   the
  relatively low level of bilateral relations in  the  past.
  However,  with better communication, a whole  new  chapter
  in  relations among nations is being established.   It  is
  our hope that bilateral relations between the Republic  of
  Malawi  and  Malaysia can be upgraded by  enhancing  trade
  and    economic    cooperation   between   our    business
  communities.  This  can be further  strengthened  by  more
  frequent  exchanges of visits, both at  the  official  and
  business sector levels.
  
  4.    The  Republic of Malawi and Malaysia both  subscribe
  to  a free market system, where private enterprise assumes
  a  leading  role  in  the economy.  This  meeting  of  the
  private   sectors  of  our  two  countries  is  aimed   at
  providing   the  opportunity  to  discuss  and   map   out
  strategies for our mutual benefits through private  sector
  led  initiatives.   I  have with me here  today  Malaysian
  businessmen   who   represent   sectors   like    banking,
  telecommunications,    property    development,    mining,
  construction,  energy  and  tourism.   They  are  keen  to
  establish   business  partnership  with   their   Malawian
  counterparts.
  
  5.    I hope this meeting in Blantyre will build upon  the
  initial  ties  established during  the  earlier  visit  in
  September  last  year by a delegation of Malawian  Cabinet
  members  and  businessmen  to Kuala  Lumpur,  led  by  His
  Excellency the President himself.  In this respect, it  is
  heartening  to  note  that  some  business  ventures   are
  already  being  implemented or at  an  advanced  stage  of
  implementation.    For  example,  Telekom   Malaysia   has
  established  itself in the GSM cellular telecommunications
  business  with  a  major  stake in  the  Telekom  Networks
  Malawi  while  G-Two  Holdings has entered  into  a  joint
  venture  agreement with the Malawi Development Corporation
  (MDC)  to  build hotels and develop housing,  as  well  as
  venturing  into  power generation and the  development  of
  holiday resorts.
  
  6.    Malaysia has followed with great interest  the  bold
  market    reforms    and    the   wide-ranging    economic
  restructuring undertaken by the Malawian government.   The
  establishment  of the Privatisation Commission  under  the
  Privatisation  Programme in 1996 is a step  in  the  right
  direction towards a market-oriented economy.  We are  glad
  that  these  efforts are now bearing fruit  with  economic
  growth  expected to reach 7.1 percent in 1997.  I  commend
  the  Republic  of Malawi for their success and  share  the
  aspirations of forging a distinct national identity.
  
  7.    The recent bold efforts undertaken by the Government
  to  induce and protect foreign-investments in the  country
  while  at the same time expanding its industrial  base  is
  timely  and most welcome.  Malaysia, has become  a  source
  of  foreign  investment in Africa, supports  this  efforts
  and  we  are  prepared to cooperate with the  Republic  of
  Malawi   in   establishing  meaningful   bilateral   trade
  relations.
  
  8.    Bilateral trade between the Republic of  Malawi  and
  Malaysia,   although  small  has  been  growing  steadily.
  Between  1992  and 1996, bilateral trade between  our  two
  countries  grew  by an average of 3.5 percent  per  annum,
  reaching  US$1 million last year compared with just  about
  US$720,000  five years ago.  During this period Malaysia's
  exports  to  the Republic of Malawi expanded  by  about  4
  percent  each  year to reach US$440,000 in 1996.   On  the
  import  side, Malaysia has absorbed some US$560,000  worth
  of  products from the Republic of Malawi last year.  About
  94  percent  of  these  imports were  made  up  of  fresh,
  chilled, frozen or simply preserved vegetables.
  
  9.    The  present level of trade and the narrow range  of
  products  traded  do  not reflect the true  potential  for
  bilateral  trade  between  our two  countries.   There  is
  considerable scope for expansion of bilateral trade.   For
  example,  Malaysia can be a competitive source of  imports
  of  machinery, tools and equipment for light manufacturing
  and  farming  as  well  as  consumer  goods  for  Malawi's
  growing economy.
  
  10.    On  the  international  front,  Malaysia  advocates
  greater   South-South  cooperation  through  trade   among
  developing  countries.   It  is  also  our  believe   that
  members  of  the South countries should work  together  to
  improve  trade  and other economic activities  for  mutual
  enrichment.  Malaysia, therefore, actively encourages  its
  private sector to trade and to invest in countries of  the
  South,   in  order  to  play  a  role  in  their  economic
  development.  Malaysian companies have responded  to  this
  call,  and it is in this spirit that Malaysian businessmen
  are here today in the Republic of Malawi.
  
  11.   Malaysia  has  been cited as a  model  for  economic
  development.   Maybe it is.  But I would  like  to  stress
  that  Malaysia's success is not a miracle as some  suggest
  it  is.  Our success is due to plain hard work, discipline
  and  a  wish  to  be  independent of  foreign  domination.
  Agriculture  and  natural resources  helped  us  but  were
  insufficient  to create jobs for our people.   And  so  we
  went  into  manufacturing and kept  ourselves  competitive
  through low inflation.
  
  12.   We found that one of the prerequisites for sustained
  economic    growth   is   an   adequate   and    efficient
  infrastructure.  We note that Malawi too is  focussing  on
  this  by  upgrading  its  communications  facilities   and
  financial  services  to support other economic  activities
  in  the  country.  Malaysian companies have ventured  into
  the  South markets and accumulated considerable experience
  in   banking,  highway  construction,  housing  and  hotel
  development,  power  supply, oil and  mineral  exploration
  and  telecommunications.  Malaysia  is  prepared  to  work
  with Malawians in these areas.  Malaysian businessmen  who
  are  present  here today are also keen to invest  directly
  in  the  18  projects  that are being  privatised  by  the
  Malawian  authorities or acquire equity in the  140  State
  Owned Enterprises that are open to foreign participation.
  
  13.    When   Malaysia  began  its  industrialisation   it
  concentrated  on  job  creation through  labour  intensive
  industries.   Today Malaysia is short of  workers  and  we
  have  to  move some of our labour intensive industries  to
  countries  with  high  unemployment  rates  and  therefore
  lower  cost of labour.  I am sure you will agree  with  me
  that  the  first priority for a developing country  is  to
  create  jobs  for  its workforce.  If it is  agreeable  we
  would   like   to  move  some  of  our  labour   intensive
  industries here in order to create reasonable incomes  for
  the Malawian workforce.
  
  14.   Malaysian companies have already invested  in  South
  Africa,   Zimbabwe,  Namibia,  Ghana,  Guinea,   Tanzania,
  Mauritius  and  of course Malawi with the same  objective.
  These   companies   have  acquired   experience   in   the
  development   of  export  processing  zones  and   housing
  projects, the construction of hotels, tourist resorts  and
  highways,   the   provision  of   telecommunications   and
  television broadcasting services, banking as well  as  the
  traditional area of plantation management.
  
  15.   This  meeting  today  is a  platform  for  both  the
  private   sectors  of  our  countries   to   explore   the
  possibility  of  going into downstream  manufacturing  and
  processing   activities,   utilising   locally   available
  resources like minerals and agricultural products.   There
  are  vast  opportunities in these areas since the Malawian
  mineral  resources are still largely untapped  while  most
  of  its agricultural produce are being exported in the raw
  form to be processed elsewhere.
  
  16.   Apart from exploring the economic potential in  each
  other's   country,  the  Malawian  and  Malaysian  private
  sector  should also explore opportunities for  cooperation
  in  third countries,  We should focus our attention on the
  newly   emerging  markets  in  the  Southern  and  Central
  African  region  where Malawian and Malaysian  enterprises
  could    synergies   their   individual   resources    and
  experience.   For example, they could seek joint  ventures
  to    import,    warehouse   and   distribute    Malaysian
  manufactured products in Malawi, its neighbours and  other
  land-locked markets in Africa.
  
  17.   The Republic of Malawi and Malaysia have already put
  in  place the necessary framework to enhance business  and
  trade   in   the  form  of  the  `Trade  Agreements'   and
  `Investment  Guarantee Agreements' which  were  signed  in
  Malaysia  last year.   I therefore, urge both the Malawian
  and  the Malaysian business communities to identify  areas
  of cooperation for mutual benefits.
  
  18.   Under  the Malaysian Technical Cooperation Programme
  (MTCP)   many  participants  from  the  South   countries,
  including  the  Republic of Malawi,  have  benefited  from
  various  training programmes.  For example,  between  1992
  and  1996,  32  Malawian  officials  have  attended  short
  courses  in  areas  like international  diplomacy,  public
  administration, agriculture and environmental  protection.
  We  would  be  happy to make available  a  few  more  such
  training places.
  
  19.   I  am  confident that the foreign business community
  will  view  the  introduction of  the  Public  Enterprises
  (Privatisation) Act and the establishment  of  the  Malawi
  Investment Promotion Agency as affirmative action  towards
  creating  a  more  conducive investment  climate  in  this
  country.    I  am  certain  that  the  Malaysian  business
  community  too  will respond positively to the  initiative
  taken by the Malawian government.
  
  20.   May I take this opportunity to once again thank  you
  for  the  warm reception and gracious hospitality accorded
  to  my  delegation and I.  We look forward to  discovering
  more  about  your fascinating land and its  people  during
  this visit.