Message from Ambassador Dato' Dali M. Hashim
On the auspicious occasion of the 38th anniversary of the Independence Day of Malaysia, I wish to take this opportunity to congratulate the government and the people of Indonesia who have just celebrate the historic 50th anniversary of the Proclamation of the Independence of the Republic of Indonesia on August 17th, 1995. I would also like to thank The Jakarta Post for the opportunity of this message.
The year 1995 witnessed the holding of the eighth General Elections in Malaysia. The result of the elections was an overwhelming victory of the governing Coalition Government of the National Front. This fact would augur well for the continued stability of the country.
The year 1995 also brings Malaysia yet one year nearer to the deadline of achieving the national objective of "Vision 2020". What is "Vision 2020" ? As its name indicates, it is the crystallization of Malaysia's ambition to become a fully developed nation by the year 2020 in every sense of the word : socio-economically, technologically, politically and from the ethical and spiritual viewpoints. More specifically, the Malaysian economy by the year 2020 would have, among other things, the following features :
1. A diversified and balanced economy with a mature and widely- based industrial sector, a modern and mature agriculture sector and an efficient, productive and an equally mature services sector.
2. An economy that is able to quickly adapt to changing patterns of supply, demand and competition.
3. An economy that is technologically proficient, fully able to acquire, adapt, innovate and adopt the latest in modern technology and to keep up with it.
4. An economy that has strong and cohesive industrial linkage throughout the system.
5. An economy driven by brain-power, skills and diligence, in possession of a wealth of information, and able to utilize it.
6. An economy with high and continuously increasing productivity at every phase of the process.
7. An entrepreneurial economy that is self-reliant and outwardlooking.
8. An economy characterized by low-inflation and low cost of production.
9. An economy that is geared to the full discipline and rigors of market forces.
To achieve the objective of Vision 2020, Malaysia would need to have an economic growth rate of seven percent per annum from now till the year 2020.
Obviously, the key to sustaining a growth rate of seven per cent per annum lies largely in stimulating a high rate of investment -- both domestic and foreign. In this regard, Malaysia has been quite successful in improving the physical, legislative, administrative and financial infrastructures so as to sustain investment at 34 to 35 percent of GDP in order to achieve growth.
Thus Malaysia was able to achieve a continuous economic growth rate of above 7.5 percent for the past five years. For this year, the expectation is a growth rate of between eight and nine percent. The high growth rate is all the more remarkable when viewed against the low rate of inflation experienced in the country . In 1994, inflation was 3.8 percent while for this year, it is projected to be below the target of four percent.
The point has been made that success in attaining the national objective of Vision 2020 would require a massive injection of capital and technology and a further liberalization of global trade. It therefore follows that Malaysia would continue to attach utmost importance to a durable environment of peace and stability in order to enhance the flow of investment and technology and greater growth of world trade. By the same token, the target to become a fully industrialized society would also mean that Malaysia offers a vast opportunity and potential for greater economic cooperation and interaction with the international community.
Malaysia-Indonesia bilateral ties continue to be strengthened and deepened in every respect. I am particularly happy to note that both countries have been giving greater importance to expanding economic cooperation particularly in trade and investment. Reflecting this new emphasis, Malaysian investments in Indonesia increased significantly in 1994 reaching a total of US$ 603 million compared to only US$56 million in 1993. The quantum of Malaysian investments in Indonesia for 1995 is also expected to be impressive. From Indonesia too, there has been a significant increase in commercial transactions including cross border listing and exchange of shares mechanism.
Given the firm commitment of the leadership at all levels of both countries as well as their respective strong performing economies, I am confident that the future will see an even grater quantitative and qualitative improvements in Malaysia-Indonesia bilateral relations.