CHINA NOT A THREAT, SAYS DR MAHATHIR

KUALA LUMPUR, April 26 (Bernama) -- China's economic growth is not a threat
but beneficial to Malaysia, according to former Prime Minister Dr Mahathir
Mohamad.

Dr Mahathir said that Malaysia should not unduly fear China's strength as
being engine of the world economy which was an asset.

"China is going to be a big producer of goods and we are going to be
largely consumers. But they will be needing something from us like certain
expertise," he said at a keynote address at the forum on "A Strong China --
Implications and Challenges" organised by National Chamber of Commerce and
Industry of Malaysia here Monday.

Dr Mahathir said many Malaysians were investing in China because they have
certain expertise the country would like to have and was seeking to import to
cater for a large population.

"Moreover, with the substantial Malaysian Chinese population in the country
that shares the same language and culture with China, it provides the bridge to
communicate smoothly," he said.

Dr Mahathir said China, set to become the most powerful economy in future,
has never showed any inclination to invade neighbours but it found a way to
develop into a strong economy without giving up the single party authority
system from the past.

"It retains the political system till today which ensures stability with
a modified form of western market system," he said.

Dr Mahathir said Malaysia should maintain its good relationship with as
there was a lot to be gained.

"China has now drawn away foreign direct investments (FDIs) from Malaysia
because its advantage of high skills and low-cost labour," he said.

"We feel that we are threatened by China drawing away FDIs but actually they
are not. Our labour cost has gone up and we can't even compete with Thailand."

Dr Mahathir said Malaysia needed more value-added industries in order for
its people to get better wages the country has certain advantages over China.

"We need to identify the areas properly. We cannot stop China from growing
or have policies to contain China. It's just not possible," he said.

"The world's big powers will have to accept China's development. It will
outstrip the powerful economies and the United States will no longer be the most
powerful economy," he said.

-- BERNAMA



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