Speech
Australian Minister for Trade, Mark Vaile
Fremantle, 2 August 2000
Australia-Malaysia Business Council
Australia and Malaysia: Consolidating a Strong Commercial Relationship
(Check Against Delivery)
Introduction
Thank you Ted [MC]
Ladies and gentlemen - It is with great pleasure that I visit Perth once again and I am equally pleased to have this opportunity to speak with you about the bilateral trade relationship between Australia and Malaysia. I am always impressed by the strong business connections Western Australians have developed with South East Asia, and the attendance at this breakfast today is testimony to that fact.
The bilateral relationship
Any discussion of the bilateral relationship between Australia and Malaysia must begin with an appreciation of just how long, deep and extensive the relationship is. This relationship has been forged through cooperation over many years in the areas of trade, education, defence and tourism. The range and depth of these contacts provides us with a solid base for cooperation today.
Education cooperation
Education has played a very important role in the relationship between the two countries. Under the Colombo Plan, over 150,000 Malaysian students have graduated from Australian educational institutions. Making Australia today, the number one overseas education provider to Malaysia. There are currently almost 16,000 Malaysian students studying in Australian educational institutions, over 85 per cent of who are in higher education. Malaysian students account for almost 1 in 5 overseas students in higher education in Australia. And the current trends are encouraging.
However, it is no longer just a case of Malaysian students travelling to Australia. Australian institutions are re-structuring their operations in order to take the education to Malaysia. Monash University was the first foreign owned institution to receive approval to establish a branch campus in Malaysia. While today, Curtin University is also in a position to offer educational services to Malaysia.
Commercial links
The commercial links between the countries are very strong. Malaysia is Australia's 10th largest trading partner overall and our 11th largest destination for exports.
While Malaysia's exports to Australia remained strong during the recent economic crisis, Australia's exports to Malaysia tapered off somewhat. However encouraging figures just released this week show that merchandise exports for the last financial year were up 15 percent on the previous year
Also encouraging is the fact that despite the regional economic crisis, most of the 200 or so Australian companies present in Malaysia maintained their operations there during the crisis. In fact, total Australian investments rose by about 6.5 per cent during this period, at a time when total foreign investment in Malaysia decreased by almost 30 per cent. Making Australia the 12th largest foreign investor in Malaysia.
Investment opportunities
Real opportunities for investment exist in the areas of building, construction and infrastructure sectors. Only last month, I met with the Malaysian Deputy Minister for Works who was here to promote Malaysia as a destination for Australian investment.
With Malaysia's relatively open market and continuing trade liberalisation, opportunities for Australian companies have never been better. Late last year, tariffs on 43 food categories were abolished. While tariffs on another 136 food products were reduced. Opening the way for Australia's agri-food industries.
But like many countries of the 21st Century the big opportunities exist in the area of Information Technology. With the development of the Multimedia Super Corridor (MSC) in Malaysia, and the growth of e-commerce and related services in Australia, natural opportunities are beginning to emerge
Australia is now recognised as a world class service provider. From financial services to healthcare, telecommunications to engineering, Australia is now in a position to provide leading edge technology and highly skilled workers to the Malaysian market, providing Australian industry with increased opportunities in all aspects of the IT-economy.
Tourism
Tourism remains an important aspect of our commercial links. Malaysian Airlines is now one of the key carriers on the busy Europe-Australia route. Malaysia and Australia offer different but complementary options for northern hemisphere tourists. Both sides could work more actively to jointly maximise the benefits of this growing tourist trade, which will intensify in the lead up to the Sydney Games and beyond. Last year, nearly 140,000 Malaysians visited Australia, up from 112,000 the year before.
Institutional links
Underpinning the development of the overall bilateral relationship are regular institutional meetings and visits.
Last month, John Moore, the Minister for Defence, visited Malaysia for bilateral and regional security discussions. Later this month, David Kemp, the Minister for Education, Training and Youth Affairs will visit to Kuala Lumpur for bilateral Ministerial meetings, and at the same time attend the Australian Universities Alumni Convention in Kuching (Coo-ching). I am pleased to be able to announce today that my Department, with the support of the WA Government will showcase Western Australia's Black Swan Theatre company in Malaysia, by sponsoring performances at the Alumni Convention.
I am also hoping to visit Malaysia later this year to co-chair the third Joint Trade Committee meeting with my counterpart Minister Rafidah. I look forward to your contribution towards developing the agenda and outcomes for that meeting.
AFTA-CER FTA
A key regional interest being pursued by the government this year is the proposal for a free trade area between ASEAN countries, including Malaysia, and Australia and New Zealand.
This will be a major area of discussion at the next meeting of ASEAN and Australia and New Zealand Trade Ministers in Chiang Mai that I will be attending in October.
We have been encouraged by the work to date of the Task Force, in exploring this issue and I commend Tim Fischer for the work he has done as Australia's representative. I will be working for a positive outcome at the Chiang Mai meeting to progress this exciting initiative. If the proposal for an FTA were implemented, it would lead to an open market of over 530 million people, of which Malaysia would be an important part. It would be a tremendous boost to our trade and export links with the region which is a priority for this Government.
Conclusion
Clearly, the bilateral relationship we enjoy with Malaysia is very substantial and has the capacity to grow further including through the work we are doing on closer ASEAN/CER trade links. In particular, we should build on the strong foundations already in place to consolidate our commercial links in the years ahead.
The business community has a key role to play in taking advantage of the shared interests and common goals evident in our relationship.
I look forward to your further contribution to Australia's bilateral relationship with Malaysia, and to working with you as our trade and investment links continue to grow strongly.