ASEAN told to follow Japan, South Korea

ASEAN told to follow Japan, South Korea

KUALA LUMPUR (DPA): Malaysian Prime Minister Mahathir Mohammed told small- and medium-scale industries grouped in the Association of Southeast Asian (ASEAN) Nations to follow the example of Japan and South Korea in forming inter-firm linkages with larger counterparts.

He said these linkages were important in strengthening the industrialized base of the economy and in providing market access and the cross-border transfer of technology.

"Unlike some East Asian countries like Japan and South Korea, the SMIs in most Asean countries are still weak in terms of inter-linkages with larger counterparts," he said.

ASEAN comprises Brunei, Myanmar, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

It was their task to learn from these countries and try to adopt and adapt the strategies to suit the requirement of each country, Mahathir said when opening the ASEAN-East Asian Business Forum in the Malaysian capital.

In the new millennium, SMIs must assume a greater role in enhancing the economy of ASEAN and the East Asian countries, he said.

Mahathir said the demand of market liberalization of global trade and economies provided challenges and opportunities for SMIs.

He said the SMIs must not only concentrate on building up entrepreneurial expertise but also be competitive. They must be prepared to undertake changes to survive the competition and respond flexibly to market needs.

The prime minister said the competitiveness of SMIs could no longer be guaranteed by cost efficiency alone.

SMIs accounted for more than 80 percent of the economy worldwide, and therefore assumed an important role in the economic development of both developed and developing countries, Mahathir said.