Keynote speech by H.E. Mr Martti Ahtisaari,

President of the Republic of Finland

Malaysia, January 26, 1995

Excellencies,

Ladies and Gentlemen,

I am pleased to have the opportunity to address this distinguished audience of leaders of Malaysian business and industry.

Our relations with Malaysia have always been excellent. Over the years, the relations between our countries have been developing well and cooperation has spread to many fields. For quite some time now, the main emphasis has been on commercial and economic activities.

Our political and economic aspirations aim in the same direction. We are strong supporters of the United Nations and committed to its reform. The efforts made by both countries in UN peacekeeping operations are also well-known. We are solid supporters of the open multilateral trading system.

Malaysia's economic development has been spectacular in recent years. The objectives set by your government in its vision for 2020 have been proved exactly the right ones.

Economic growth in Southeast and East Asia in general has been truly impressive during recent years. These regions are evolving into economic powers comparable in every respect with Europe and North America.

Ladies and Gentlemen;

During our seminar this morning you have heard a general account of Finnish industry and of some of its leading sectors. The companies present here today are all global operators. Asia, and in particular its most dynamic regions East and Southeast Asia, are of utmost importance for Finland and for Europe in general.

I believe that Finland has plenty of advanced technology well suited to the vast infrastructure projects going on in Southeast Asia. Finland is very competitive, and even a world leader, precisely in the sectors where demand in Malaysia is now strongest, namely in telecommunications, power generation and distribution, forestry and forest-based industries, environmental technologies, petrochemicals, shipbuilding, harbour development, civil engineering and aviation.

Finland became a member of the European Union at the beginning of this year. It was our greatest political decision since the Second World War. Acceding to the Union was vital for Finland in many ways. I am convinced that EU membership improves the prospects for sound and dynamic development of the Finnish economy. As a member of the Union Finland commits itself to the common economic and monetary goals of the European Union.

As a new member of the European Union, Finland encourages intensified cooperation with Asia. The Union's new Asian strategy provides a good basis for developing a more balanced partnership that takes into account and also respects differences between national cultures and traditions. The EU-ASEAN dialogue can be regarded as an essential driving force in strengthening ties with Asia.

The substantial changes that have taken place in recent years in the geoeconomic and geopolitical location of Finland have created new business opportunities for overseas companies there. Our membership of the European Union means that, through Finland, foreign companies now have unlimited access to a huge single European market of nearly 400 million people.

Finland has always been a strong proponent of the open multilateral trading system. We worked actively for the success of the GATT Uruguay Round. We must, however, recognize that we will be dealing with complicated issues within the framework of the WTO. For instance, we consider that labour standards and standards of environmental protection should be improved, but we underline very strongly that these efforts should not be transformed into protectionist measures.

Parallel with developments in the GATT/WTO, we have been following with keen interest the plans and recent initiatives in the field of regional economic cooperation and integration in Asia. We have noted especially the Malaysian initiative on EAEC, and the latest developments in the APEC. We welcome the liberal spirit in which these initiatives are being envisaged and implemented: instead of creating barriers, they seem to aim at facilitating market access on the basis of open regionalism. Thus they effectively complement the GATT and the WTO, a development that I believe will be in the interests of us all.

Economic interchange between Finland and Malaysia has been an evolutionary process. In addition to traditional forms of trade, more advanced and diversified types of economic and industrial cooperation have emerged and developed. The interest felt by Finnish companies in establishing themselves in Malaysia is growing all the time. We should keep in mind the important role played by direct investments are today as effective means for transfer of technology and the modernization of industry. Malaysia also offers plenty of potential for small and medium-size industry, and for industrial production through joint ventures, for instance.

As to the future outlook, therefore, I feel there is still much more potential on both sides which should be tapped.

Ladies and Gentlemen,

Let me now propose a toast to your health and well-being, to the continuous prosperity of Malaysia and its people, and to the further development of relations between our two countries.