A stable Government draws investors -Dr. Mahathir Mohamad
By Manjula Fernando
Legendary former Malaysian leader Dr. Mahathir Mohamad said Sri Lanka
could reach the level of Malaysia's development much faster if the
country could retain the political stability that it enjoys today.
"When governments are changed, as happens in all democratic
countries, there comes changes in policy. Changes of policy is always
unsettling for investors. So stability is important for foreign
investment and investment is crucial for the growth of a country."
Dr. Mahathir, the man behind Malaysia's success story was in Sri
Lanka last week attending the Hambantota conclave and flagging off a
number of key Malaysian investments here.
His mission was to deliver the keynote speech at the Hambantota
conclave, a forum held at BMICH to create awareness on the future
development plans for the greater Hambantota area, an aspired economic
hub under the President's vision of developing a robust economy.
During his stay, a number of Malaysian investments; a condominium
project in Hambantota, a mixed development project at Katunayake EPZ and
a transport terminal project in Colombo were flagged off by the
Malasia's iconic leader.
The Sunday Observer caught up with Dr. Mahathir at the Cinnamon Grand
Hotel, shortly after an exchange of documents between the Transport
Ministry and a leading Malaysian company, formalising a joint
collaboration to build an integrated transport terminal in Pettah. (See
business pages) Excerpts of the brief interview,
There is stability in the country now due to good leadership, you
have a lot to catch up but I think they are doing a good job. For
example I visited Hambantota yesterday where the city is being totally
transformed.
The last time I came here, from the airport to the city, we were
compelled to go through a lot of traffic jams. Now there is a fantastic
highway where we could travel at very high speed and there is no traffic
jams. Much progress have been done in the last five years.
And I think this is a remarkable achievement and I think you are
going through a very exiting time in Sri Lanka. I am quite sure very
soon Sri Lanka will be much better developed than this.
In the future you will see a lot of tourists, business people and
investors coming to Sri Lanka from Malaysia.
Investors whether domestic or foreign will only invest when there is
stability, especially political stability. Consistent policies by
government is crucial, we see that happening in Sri Lanka now, it is a
stable country now.
You don't have terrorism and also the government has been consistent
in its policy to develop Sri Lanka.
Because of that we are convinced that investors coming to Sri Lanka
will get full benefits of a government that does not change in 180
degrees, but continue with a policy which will attract investors into
the country.
Malaysians are interested in Sri Lanka. We had good relations since
British times and I think exchange of knowledge and experiences would be
useful for both of them.
Q:Malaysia's economy stands at ten times bigger than Sri
Lanka. In terms of strategy are we on the correct path to reach higher?
You can establish that level much faster than we did, provided that
you sustain your stability.
Q:You were the longest serving leader in Malaysia, do you
think such political stability is essential for countries like Sri Lanka
to develop?
When somebody does not perform he should be changed but if you think
the performance of a person is good, retain him. Changing governments is
not a solution to all problems.
You may get a worst government if you change the one that is present.
When a person is accomplishing things, he should be given the support he
deserves.
I have met some Ministers and Government officials and I think they
are keen to carry forward the development program and they are friendly
towards investors. Elimination of bureaucratic red tape is crucial for
attracting investors.
When governments are changed as happens in all democratic countries,
the changes of government means change of policy, changes of policy are
always unsettling for investors. So stability is important for foreign
investment and investment is crucial for the growth of a country.
The situation in Sri Lanka is very conducive for foreign
participation in economic development. Of all regions in the world,
South East Asia are perhaps more stable for investment. Malaysia was not
expected to develop, the country was divided by not only race but by
religion, culture, language and economic issues. The 60 percent of the
indigenous people in Malaysia were the poorest of all.
But within 30 years the country transited from a poor nation to a
middle level income country. Today we have over 20 million tourists
coming to Malaysia.
When there are investment it creates jobs for the people, increases
their income and contributes to the development of the country.
When Malaysia wanted to industrialise we had no expertise, no capital
and no management skills. For that we had to invite foreign investors,
to create jobs for our people and to grow the economy. Earlier
Malaysia's exports were made up of 80 % of raw material, today we export
80 % of manufactured goods.
Our main target was to earn foreign exchange through exports.
Some people think if you let people do anything and everything that
they wish for that is good governance. But this may lead to chaos. Good
governance is knowing where to limit the freedoms.
In Malaysia the government does not hesitate to limit freedoms within
the law. The law shows as to how far you are free to do certain things.
I think Sri Lanka has achieved a lot in terms of infrastructure,
there will be incidents which are of minor origin, but major challenges
like terrorism has practically stopped, the country is now stable and
people are more free.
It is an interesting time for Sri Lanka, since you are in an
accelerated development phase. Malaysia went through a similar phase
that lifted it to the current level of development today. Our target is
to become a developed nation by 2020.
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