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.