YB DATO' MUKHRIZ MAHATHIR
DEPUTY MINISTER OF INTERNATIONAL TRADE AND INDUSTRY

KEYNOTE ADDRESS AT MALAYSIA DUTCH BUSINESS COUNCIL (MDBC)

27 JANUARY 2009

PARK ROYAL HOTEL, KL

His Excellency Mr. Paul Bekkers,
Ambassador of the Netherlands to Malaysia;

Yang Berbahagia Dato' Jaffar Indot,
Chairman Malaysian Dutch Business Council;

Ladies and Gentlemen.
 
Goedenavond and Salam 1Malaysia.
 
1.    Het is goed om hier te zijn. My friends, in keeping with the organizer's wish to keep this event as informal and casual as possible-I'm going to do away with formalities and keep my speech short. Perhaps, if you have any further enquiries, we can delve into it during the dialogue session.

2.    So, allow me to start by quoting the Indian-born historian Prasenjit Duara who said that it was the force of maritime trade that most shape the Asia of today as we know it. 

3.    Quote - "Maritime trade, which was important for the spread of ideas and changes in a way that I don't think the world had seen".

4.    Indeed, the Dutch East India Company or commonly referred to as VOC had firmly established itself in this region. The VOC which is arguably the world's first mega corporation and multinational to issue its own stock saw the abundant opportunities in commodities, natural resources and trade in the Malay Peninsula and wider South East Asia. This trade relationship blossomed with the setting up of factories in Kedah and Johor by the Dutch in 1602-1603 and picked up pace after Malaysia gained its independence from Britain.

5.    More importantly, this year marks the 52nd anniversary of Malaysia-Netherlands diplomatic relations.  

My friends, the statistics tell the story.

6.    Today, both our nations are prominent trading countries and are ranked among the top 20 trading nations in the world.

7.    Over the last decade, trade between Malaysia and the Netherlands has steadily increased from RM 18.04 billion in 1999 to RM 27.13 billion in 2008. Amongst the ASEAN nations, Malaysia is still the leading trading partner of the Netherlands as well as the largest source of imports to the Netherlands.

8.    Malaysia's exports to the Netherlands in the past ten years has also increased from RM 16.23 billion in 1999 to RM 23.44 billion in 2008, while imports from the Netherlands into Malaysia has doubled to RM 3.69 billion.

9.    Manufactured goods contributed 77.9 per cent of Malaysia's exports to the Netherlands in 2008. Electrical and electronics (E&E) products formed the bulk of exports to the country, accounting for 54.6 per cent of Malaysia's total exports.

10.    The main product exports to Netherlands in 2008 were:
•    E&E products (RM 12.8 billion),
•    Palm oil (RM 3.7 billion),
•    Chemicals & chemical products (RM 1.9 billion)
•    Optical & scientific equipment (RM 1.2 billion), and;
•    Saw logs and sawn timber (RM 578.8 million).

11.    For the nine month period of January – September 2009, total trade was valued at RM 14.9 billion, of which total exports amounted to RM 12.66 billion and imports RM 2.24 billion.

12.    In 2008, the Netherlands was Malaysia's 13th largest global trading partner whereas within the EU, Netherlands ranked second after Germany.

13.    This healthy bilateral growth in trade is mainly due to the strategic position of both Malaysia and the Netherlands. Currently, Netherlands is strategically important to Malaysia because she serves as the gateway for Malaysian products to enter the EU market that includes Eastern Europe. Conversely, Malaysia being at the heart of ASEAN also serves as a platform for Dutch companies to distribute their products to the estimated 580 million people of ASEAN.

Honourable Guests,

14.    I'd like to take this opportunity to invite the Dutch business community to participate in the burgeoning halal industry.

15.    For your information, the global market value for halal products is estimated to be about US $2.1 trillion a year. Therefore, being the leading supplier of halal products of international standards, Malaysian companies are in a favourable position to export these products at competitive prices. Furthermore, as the Netherlands is a leading food producer inclusive of dairy products in the EU-Dutch food manufacturers may do well to consider venturing with Malaysian companies in halal food production and distribution. It's a synergy that makes sense. This collaboration coupled with the internationally recognised Malaysian halal certification can satisfy the demands of the Muslim and non-Muslim markets alike in Europe as well as in the Middle East.

16.    Also, biotechnology is another key area that the Malaysian government is focussing on with numerous grants and incentives. Netherland has made great strides in this area. As such, Malaysian and Dutch companies should collaborate in R&D and marketing of bio-products that could prove mutually beneficial.

My friends,

17.    Malaysia unfortunately at times suffers from biased and slanted media coverage that may affect our international standing and reputation as an investment destination. Admittedly, Malaysia has its own share of problems just like any other nation in the world. To my mind, the American financial crisis and ensuing global economic lag has exposed the flaws, fault lines and fragility of many established ideologies and worldviews that were once thought of as sacred. Malaysia surely has her problems but notwithstanding its challenges; I believe that we have done remarkably well and will continue to prosper. I hope that the Malaysia Business Dutch Council will play its part in letting the world know that the Malaysian people are ultimately united in their diversity. Malaysia is a stable country with a large population of young people optimistic about the future. The MBDC can play an important role in this context.  

18.    In conclusion, there is still much that our two nations can do in terms of bilateral trade. Perhaps, we can talk about them during the dialogue session. I'd be more than happy to take your questions.

19.    And so before I take my leave, allow me to draw from the wisdom of Vincent van Gogh, the great Dutch post-impressionist painter who said that "Great things are not done by impulse, but by a series of small things brought together".

Dank U wel.