Taiwan can stimulate SE Asia: Mahathir

Taiwan can stimulate SE Asia: Mahathir

KUALA LUMPUR (AFP): Malaysia's Prime Minister Mahathir Mohamad
said yesterday that Taiwan was in a "very good position" to help
stimulate the battered economies of Southeast Asia.

Mahathir said he hoped to discuss prospects for trade,
investment and transfers of technology during a meeting later
Thursday with visiting Taiwan Vice President Lien Chan, who
arrived here Wednesday on a four-day visit.

"Taiwan is in a very good position to stimulate the economy of
Southeast Asia," the prime minister told reporters. "They have
the know-how, they have the capital, the expertise and policies."

Asked about a proposed Taiwan-assisted fund to rejuvenate the
financial sector in Southeast Asia, Mahathir said: "We should
study such a possibility.

"Such an offer is too good to be rejected offhand. There must
be some ways we can utilize such funds to help to revive the
economies of Southeast Asia."

Finance Minister Anwar Ibrahim, who is also deputy prime
minister, visited Taiwan last month after a trip to Japan.

Following his return, he was quoted as saying that Malaysia
had discussed the proposed fund "at length" with the leaders of
Japan, Taiwan and Singapore.

Mahathir, meanwhile, played down suggestions that Malaysia had
offered to mediate between Taiwan and China, which considers the
island a breakaway province since defeated Chinese nationalists
fled there in 1949.

"We didn't say we offer," he said. "But if we are requested by
both sides, we have to think of being of service because our
policy is to try and facilitate dialogue and resolution of
problems in the region."

In an interview with the Taipei-based China Times published
Wednesday, Mahathir reportedly shrugged off Beijing's assertion
that Taipei is using the current financial turbulence to increase
its profile in Southeast Asia.

"Mainland China is in no position to interfere in terms of
courting foreign investment," he told the newspaper." After all,
politics is politics and economy is economy."

While Malaysia abides by the one-China policy of recognizing
Beijing, Mahathir said he would send more high-ranking officials
to Taiwan to brief prospective investors on Malaysia's investment
climate. "Malaysia's door is open forever to Taiwan enterprises,"
he said.

Taiwan has invested US$1.28 billion in 202 investment projects
in Malaysia, according to Taiwan government figures.

Lien, accompanied by a 20-member delegation of senior
government officials and businessmen, was expected to meet both
Mahathir and Anwar on Thursday. On Friday, the vice president is
scheduled to fly to the northern state of Penang before returning
to Taipei on Saturday.

He last visited Malaysia in December 1993 as prime minister,
triggering strong protests from China.