Programme director, South African High Commissioner to Malaysia, Mr Mseleku,

The Minister of Trade and Industry, Republic of South Africa, Dr Rob Davies,

Minister of International Trade and Industry, Malaysia, Mr Dato’ Seri Mustapha Mohamed,

Ministers, Premier,

Distinguished Business delegates

Ladies and gentlemen,

 

I wish to thank you all for the arrangements this afternoon and the opportunity to interact with the South Africa-Malaysia Business Forum.

 

Our responsibility as politicians is to create favourable conditions for you as business, to invest, grow the respective economies and create jobs that improve the quality of lives. Growing economic ties therefore form a crucial part of the bilateral relations between our two countries.

 

It is for this reason that the Malaysia South Africa Business Council was launched by President Nelson Mandela and former Prime Minister Dr Mahathir in Kuala Lumpur, in March 1997. 

You are therefore taking forward the vision of these two great leaders by meeting to discuss how to take further the economic relations between the two countries.

 

Ladies and gentlemen,

 

We are happy to be visiting Malaysia during an important year, when we mark 20 years since the establishment of diplomatic relations between South Africa and Malaysia.

It has been 20 years of friendship and economic cooperation in various areas.

 

Indeed the strength and warmth of the relations could be felt in the warm hospitality extended by the Government and people of Malaysia to my delegation and I since our arrival in this beautiful country.

Malaysia has been part and parcel of our development since 1993, through its substantial investments in many sectors of our economy including, telecommunications, energy and petroleum and real estate. 

Investments by Malaysian companies in our new democracy, was a sign of confidence by Malaysia in the prospects for growth and development in South Africa. 

 

Malaysian companies are still active in our economy. The latest trade figures confirm the growing links between South African and Malaysian companies. Total trade between Malaysia and South Africa has grown significantly from approximately 13.8 billion rand in 2008 to 19.7 billion rand in 2012. 

Thus far, trade statistics show that a trade surplus has been in favour of Malaysia since 2008. 

 

Even so, exports from South Africa to Malaysia increased significantly between 2008 and 2012 and there is further potential for trade expansion. 

On the Asian continent, Malaysia is South Africa’s 8th largest export and import partner and South Africa remains Malaysia’s most important trade partner in Africa.

With regard to investment, Malaysia is the largest investor in South Africa from Southeast Asia. 

 

The current trade basket comprises a mix of finished products and raw materials, however there is much scope to diversify the quantum of trade and explore the untapped potential that exists between both our nations. 

My delegation and I have brought the message that the South African economy offers a multitude of opportunities.  South Africa is open for business and is waiting for more Malaysian companies to come and participate.

 

This sentiment is shared by the sizeable South African business delegation participating in this visit. 

This is something to which a number of Malaysian companies can also attest to, with companies like Proton and KNM International to name a couple, already having a formidable presence in South Africa.

Our Department of Trade and Industry is leading the implementation of the Industrial Policy Action Plan and creating a manufacturing base in South Africa. 

 

We would like you to explore opportunities therefore in manufacturing.

A key intervention is our commitments on infrastructure development, wherein South Africa is on course to spend in excess of R4 trillion in the coming years, focusing on rail, roads, energy, water, sanitation and the communication sectors throughout the country. 

The plan also includes the building and refurbishment of universities, schools and hospitals. 

 

Investment in infrastructure is important to enhance economic development, regional integration and poverty alleviation.  

We also promote opportunities in tourism, energy, science and technology innovation and the defence industry.

You would also have been informed in interactions during the Business Forum discussions that South Africa offers opportunities in mining and minerals beneficiation as well as agriculture and agro-processing. 

 

Allow me to utilize this opportunity to invite you today to invest in South Africa which is not only strategically located on the African continent but is also a key investment location.

 

President Mandela and former Prime Minister Mahathir had great foresight when they launched this business forum.

Over the years South Africa and Malaysia have certainly been laying the best seeds of cooperation.  It is now the time for these seeds to receive the necessary attention so that they can spring to life in the months to come, and bear many high-quality fruits. 

 

Distinguished Guests

 

In closing, please allow me to quote former President Mandela, who said at the meeting of the “South African Malaysian Business Council” in March 1997, words which still rings true today.

He said; “May I take this opportunity to record our deep appreciation of the confidence you have shown in our future, and the leadership you have given in putting it into practice. That is how the Malaysian people's solidarity with our struggle for freedom is being turned into a partnership for development, peace and prosperity.”

 

I thank you.