Ulkomaankauppa- ja kehitysministeri Mari Kiviniemi Suomen ja Malesian kaupallis-taloudellisista suhteista

Finland – Malaysia Business Forum
Hotel Nikko, Kuala Lumpur, 4 October 2005


Dato Seri,
Datuk,
Ladies and Gentlemen,

I am very pleased to be here in Kuala Lumpur today addressing this Finland - Malaysia Business Forum. This Forum offers an excellent opportunity for all of us to get to know each other, learn about new business opportunities and to expand our horizons between Finland and Malaysia. I am grateful to Finpro as well as to our Malaysian friends, Federation of Malaysian Manufacturers, for organising this event.

The business delegation that accompanies me during my visit to Malaysia includes some of the finest Finnish companies from a variety of fields ranging from defence industry, forestry and engineering to banking, high tech meteorological equipment and educational solutions and software. These companies either conduct themselves or have close links with Finnish research and development activities. They can bring their know-how, connections, physical and intellectual capital to benefit Malaysian business and development.

Despite the geographical distance, the links between our two countries have traditionally been close. I just want to mention that the first ministerial business delegation from Finland visited Kuala Lumpur already in 1980. Our political relations are close and good. Finland has an embassy in Kuala Lumpur already since 1980 and a resident ambassador since 1988. Malaysia opened its embassy in Helsinki last year. Recently, very high level contacts have taken place: His Majesty the King of Malaysia paid a state visit to Finland just two weeks ago, and the Malaysian Foreign Minister participated in the Helsinki Process Conference in Helsinki in early September. Our prime ministers met in the margins of the ASEM Summit in Hanoi a year ago. And today, I am here in Kuala Lumpur with this high-level Finnish business delegation. These visits and meetings demonstrate the will and desire of both sides to further enhance close and lasting ties, and to cooperate whole-heartedly at all levels.

The same close relationship is true in business, as well. Our bilateral trade is increasing rapidly. Last year, a twenty-to-twenty-five percent annual growth was recorded. There are currently some 40 Finnish companies operating in Malaysia. These include some of the biggest and most successful ones from telecommunications to more traditional paper production and mining. Finnish companies have invested dozens of millions of euros in Malaysia and the amount is increasing by the day. They create employment and produce wealth for Malaysia as well as for Finland. I am convinced that the win-win opportunities that we can offer for each other will contribute to the well-being in both countries.

Ladies and Gentlemen,

Finland as a highly developed Northern European country has some unique features that have made us very successful in many spheres of life: Since several years, and again this year, Finland gained top rankings in the world growth and business competitiveness ratings. What is the secret for being competitive? For Finland, this includes the following: Our country is very well managed at the macroeconomic level, and it also scores very high in those measures that assess the quality of its public institutions. Furthermore, the private sector shows a high tendency for adopting new technologies and nurturing a culture of innovation. Even higher valued by many has been the way the society is organised and how people value living in Finland.

We have a highly educated and skilled labour force. The education level of the population at large is one of the highest in the world. Our basic education system produces excellent results. In the OECD PISA survey, Finnish 15-year-olds got highest rankings in science, mathematics, reading and writing skills. Finnish government, universities and companies cooperate closely in the area of R&D. In fact, Finland holds top rankings in public R&D spending globally.

As you probably know, forestry has traditionally been the backbone of the Finnish economy. We have learned to take care of our forests so that nowadays they grow faster than they are cut. Paper industry no doubt has been and will be important for our economy. Following from that, engineering has traditionally been very highly valued in our society, as well. And we do love new technology; prime examples of this are evident: Mobile phone penetration is one of the highest in the world. Personal computer and internet connections per capita are also very high. Our country, with a vast geographical area and low population density with some 5,2 million people, is one of the best-connected countries in the world. And in this kind of environment, it is crucial that our infrastructure and transport connections are highly developed.

Ladies and Gentlemen,

Malaysia holds a great position in South East Asia. It has good links regionally as well as to expanding markets in China and India. Your infrastructure is advanced and transport connections are excellent. The communications network is of high standard. Mobile phones are part of daily life in Malaysia in the same way as in Finland. The ICT sector is a high priority for the Malaysian government. Malaysia is becoming more and more competitive, the economy is growing fast creating new opportunities.

Malaysia has high self-sufficiency in energy supply with its oil and gas resources. There is also important palm oil production. In the future, bio-fuel development could be one of the fields that is increasingly interesting for both Malaysia and Finland. Both of our countries are interested in finding out ways to limit green house gas emissions and save the global ecosystem for all our benefit.

Malaysia has an important role globally, as well, most prominent examples being your current chairmanship of ASEAN, the Non Aligned Movement as well as the Organisation of Islamic Countries. All this shows how active and respected Malaysia is in the international arena.

Next year, Finland will assume the European Union Presidency for the second half of the year. We will operate as global partners in many substantive fields and international fora. This partnership will have a highlight in September 2006 when the sixth Summit of the Asia Europe Meeting, the ASEM-meeting, will be organised in Helsinki. Altogether 38 countries from Europe and Asia are expected to participate in this event. It is clear that Europe and Asia are partners and we need each other in global markets. But not only that: we need to manage global political and environmental challenges together, as well. In Aceh, we have an excellent example of how the European Union and ASEAN countries cooperate closely to support the peace process. EU, including Finland, has also participated in assisting the tsunami affected regions in South East Asia with several aid programmes.

In South East Asia, ASEAN has taken important steps in regional cooperation. Malaysia, as a founding member of ASEAN, has traditionally emphasized the importance of regional cooperation. As a further step in this integration, the first East Asia Summit will be organised in Kuala Lumpur in December this year. We follow this Summit and its results with great interest. It is clear that regional cooperation is becoming more and more important in Asia. There is an increasing interdependence between countries and businesses. Intra-regional trade is growing. And in the global trade, we simply need each other ever more.

The European Union as a regional cooperation success story has become increasingly important for Finland. With recent enlargements, the EU has provided us with a common market of some 450 million people and consumers. Twelve countries, Finland among them, use the same currency, the EURO. We conduct common trade and agricultural policies. Today we also cooperate closely in foreign policy, development policy and border management, among other things. Union wide standards and laws are applied in many other fields, as well.

Ladies and Gentlemen,

We have gathered here to enhance existing relations and to build new contacts between businesses and people. We need each other and we benefit from each other.

My best wishes for a successful day and successful cooperation.

Thank you.