Malaysia counts on speedy growth

Business Asia, Sept 30, 1999

Malaysia is prepared to invest in the BIMP-EAGA region to speed up growth in the region, according to the country's First Finance Minister Daim Zainuddin.

Responding to criticisms of slow growth in the region, Daim suggested the BIMP-EAGA conference in Darwin would be a starting point to turn around such perceptions.

In addition, he said Malaysia was prepared to drive growth.

In fact, he said Malaysia had already invested actively in the area and was one of the first to initiate investment in southern Philippines via hotel construction and by venturing into agriculture.

However, Daim said that certain countries in the area could not really focus on growth in the region as they were pre-occupied with the situation in their own countries.

"The problem now is that when we hold meetings, Indonesia seemed so busy while the Philippines also does not seem to have the time. Only Brunei and Malaysia have the time," he said.

Daim was asked to comment on a recent statement by former Philippines President Fidel Ramos concerning the slow growth in the BIMP-EAGA.

Daim, however, noted the the special BIMP-EAGA seminar in Darwin would help address such issues. In addition, a BIMP-EAGA senior officers' meeting will also be held in November.

"Investors from Darwin would invest in the BIMP-EAGA, especially in the Philippines and Indonesias, and we hope that they could initiate it," he added.

Daim denied that the slow growth in the area was due to lack of commitment from the countries involved.

"The Philippines, for example, it's economy is getting better so that they may not give priority to this region. What is given priority may be their role in the Asia Pacific Economic Cooperation (APEC)," he said.

A number of other factors had also hindered the rapid growth in the region, including that involving laws and regulations which needed to be amended to enable investments to be made, he explained.