Siew says Taiwan should cooperate with Malaysia

The chairman of the Chung-hua Institution for Economic Research (中經院) proposed yesterday that Taiwan and Malaysia should negotiate better terms for economic cooperation under the framework of the WTO.

Vincent Siew (蕭萬長) made the remarks at a seminar sponsored by the Malaysian business community while giving a keynote speech on Taiwan-Malaysia trade ties and Taiwan's "go south" investment policy.

Noting that Taiwan and Malaysia have long enjoyed good and close trade and economic relations, Siew said that the two countries have a good opportunity to further enhance their cooperation at a time when Taiwan is hoping to reduce its investment risks while Malaysia wishes to lure greater amounts of foreign capital.

Siew proposed that the Taiwan and Malaysian governments jointly work out resolutions to the problems Taiwan businessmen encounter in Malaysia, such as easing restrictions on financial dealings and residence permits. He expressed his belief that Malaysia will be able to attract more Taiwan capital by doing so.

According to the former premier, Taiwan is a major trade partner and a vital investor for the economies in the region.

Siew said that Taiwan investors would also benefit from a planned free trade zone to be established by China and the member states of ASEAN, and he added that Taiwan will be able to play a role conducive to the overall integration of the Asia-Pacific economies.

He called on the Malaysian authorities to ponder the question of whether it is wise to exclude Taiwan from regional negotiations and agreements at a time when the region is hoping to build a prosperous economic entity in Asia.

Datuk Chua Jui Meng, the Malaysian health minister who also serves as head of a small and medium-sized enterprise consultation center, said that Taiwan is strong in training and cultivating professional manpower. Malaysia can learn a great deal from Taiwan in this regard, he noted.

Taiwan-Malaysia trade totaled US$8 billion last year, up by 7.1 percent over the 2001 level and accounting for 4.6 percent of Malaysia's total foreign trade. Taiwan was Malaysia's fifth-largest foreign investor last year, and poured US$9.3 billion-worth of investment into the country in the first six months of this year, outstripped by only the US and Japan.