Speech of H.E. Dr. Iftekhar Ahmed Chowdhury, the Hon'ble Adviser for the Ministries of Foreign Affairs, Expatriates' Welfare and Overseas Employment at the Inaugural function of Showcase Malaysia 2008 at Dhaka Sheraton Hotel on 20 March 2008 at 1045 hrs

Mr. Salahuddin Kasem Khan, President BMCCI
Distinguished Guests, Ladies and Gentlemen,

It is indeed my great pleasure to be here this morning and inaugurate the 'Showcase Malaysia 2008' event. I thank the Bangladesh-Malaysia Chamber of Commerce and Industry for organizing this first-ever single country fair of Malaysian products. This will, no doubt, further boost the trade between our two friendly countries. I also congratulate the Malaysian High Commission in Dhaka and Malaysia South South Association (MASSA), Kuala Lumpur for co-sponsoring this trade fair.

Ladies and Gentlemen,

Bangladesh and Malaysia enjoy strong political, economic and cultural ties. This dates back to centuries. We share a common heritage that promotes mutual respect, tolerance, pluralism and human dignity. We also share a common colonial legacy. Since our independence in 1971, we have found in Malaysia a trusted friend, a dependable trading partner and a model of economic development. The Malaysian economic miracle and its resilience against many odds remain a source of inspiration for many developing countries. We witnessed, with great pride, how Malaysia weathered the storm of a great financial crisis in 1997 and came back on its foot in no time. It had ignored the orthodoxy of neo-classical economics and imposed capital control to prevent a complete financial meltdown. IMF had predicted, indeed wrongly, that because of this, foreigners would never invest in Malaysia. After the financial crisis, they not only received a large amount of additional foreign capital, but also recovered faster than other Asian Miracle economies.

Ladies and Gentlemen,

Bangladesh has a lot to learn from Malaysia. We must take lessons from their economic planning. It is indeed remarkable how idyllic Malaysia became an industrial giant in less than three decades. Its GDP per capita quadrupled between 1975 and 2005 - from USD 1300 to USD 5500. This came about because of its success in generating a large domestic savings bases. The government's macroeconomic policies were instrumental in raising the national savings rate. Concomitant to this was the role of industrial policy, which fully exploited its dynamic comparative advantage. The Malaysian industrial policy ensured that the economy was on the right trajectory, moving from low skilled, low value added production to high skilled, high-value added sectors. Today, Malaysia is a world leader in ICT. It became possible, also because the government had put the right emphasis on human resources development. Bangladesh too needs to prioritize human resources development if it is to become a middle-income country in the next decade.

Ladies and Gentlemen,

In recent years, the two-way trade between Malaysia and Bangladesh has expanded exponentially. Bangladesh's import from Malaysia stood at USD 334.16 million during fiscal year 2006-2007. During the same period, our export to Malaysia was only USD 16.91 million. I would like to urge the Bangladesh- Malaysia Chamber of Commerce and Industry to take urgent steps to enhance Bangladesh's exports to Malaysia. It is an imperative to stop our yawning bilateral trade deficit. It is equally important that the Chamber acts as a conduit to attract Malaysian investment in Bangladesh. A greater inflow of FDI could contribute to offsetting the trade imbalance.

Malaysia is a major destination for our migrant workers. As of now, an estimated 440,000 Bangladeshis are working in Malaysia. Remittances that they send make a significant contribution to our poverty development. However, many of our workers in Malaysia face harsh working conditions, maltreatment, even abuse, and not but least, persistent low pay. They often lack access to the Malaysian legal system. This needs to be redressed immediately. I strongly believe that Bangladesh-Malaysia Chamber of Commerce and Industries can play the role of an arbitrar to safeguard the rights of the Bangladeshi workers.

The Chamber can work closely with the Malaysian employers to settle labor disputes. You may also consider creating training facilities for prospective Bangladeshi workers to sensitize them about the work-culture in Malaysia. This, in my opinion, will go a long in improving labor relations. Finally, I will strongly urge the Chamber to work with the Malaysian Government and other stakeholders to set a minimum 'living wage' for the Bangladeshi workers. Often the very low wage disgruntles the workers and incites them to undertake many types of risky behavior. We must not allow this to happen.

Ladies and Gentlemen,

Let me conclude by once again thanking the Bangladesh-Malaysia Chamber of Commerce for organizing this Showcase. This will surely contribute to strengthening the excellent bilateral relations between our two countries.

Thank you.