IT is in Malaysia’s interest to ensure that the region remains business-friendly as the Asia-Pacific Economic Cooperation (Apec) is key to the country’s trade, Prime Minister Dr Mahathir Mohamad said today.

Speaking at the launch of Apec 2020 today, Dr Mahathir said the trade cooperation is important for Malaysia as the region accounts for more than 80% of its total trade, bringing in more than 70% of foreign direct investment in the manufacturing sector.

“About 40% of the jobs created are directly attributable to activities linked to exports. So, it’s also in our interest to ensure that this region remains business-friendly, and that trade and investment policies bring prosperity for all, right down to the man on the street,” he said.

Malaysia will host Apec 2020 after 22 years.

Meanwhile, the Bogor Goals outlined in 1994 will expire next year.

“According to the 2018 Bogor Goals progress report, tariffs have fallen, more free trade agreements are improving market access conditions for goods and services and custom reforms are making it easier, cheaper and faster to trade,” he said.

Dr Mahathir said Malaysia will bear in mind the situation of faith deficit in many economies in the world, when it takes over the chairmanship next year.

The many imbalances which have impacted on the daily lives of the people have caused them to lose sight of the relevance or benefits of the prevailing global economic model, he said.

“In 1998, when we first hosted Apec, many economies in the region were taking steps to mitigate the adverse impact of the 1997 Asian financial crisis and efforts were concentrated on restoring financial stability and strengthening economic growth.

“However, the global economic community at that time rallied together and affirmed their faith towards globalisation as it would create more opportunities for many economies.

“Today, Malaysia will launch Apec 2020 against almost a similar backdrop when downside risks are continuing to build up and trade policy tensions are still with us,” he said.

These trends will continue to hamper investors’ confidence, eventually leading to diminishing the trust people have in the benefits of global trade and investment.

The Apec region, which accounts for 60% of global GDP and 50% of global trade, has a huge market potential, hence it is important to tap into this strong base to create opportunities, he said.

“We must acknowledge that there are inherent discontents among our citizens on basic issues, such as high cost of living, housing, unemployment and low wages.”

So, it is also Apec’s role to ensure that it contributes to sharing the benefits that trade can bring about to society at large, he said.

Dr Mahathir said Malaysia will embrace these challenges to ensure that Apec 2020 becomes a success and the benefits from trade, investment and economic cooperation are felt and enjoyed by the people. – December 4, 2019.