Speech by His Excellency Mr Martti Ahtisaari, President of the Republic of Finland, at a state banquet hosted by His Majesty Yang Di-Pertuan Agong Tuanku Ja'afar

Kuala Lumpur, January 25, 1995

Your Majesties Yang Di-Pertuan Agong Tuanku Ja'afar and Raja Permaisuri Agong,

Excellencies,

Ladies and Gentlemen,

It gives me great pleasure to have this opportunity to visit beautiful Malaysia at the invitation of Your Majesty Yang Di-Pertuan Agong Tuanku Ja'afar. I am delighted to be the first Finnish Head of State ever to visit Malaysia, a fact which gives this occasion great historical significance. It emphasizes that we in the North have come to realize the ever-increasing importance and stature of Malaysia in regional and global affairs. We have come here to pay our courtesies to your Majesty's Government and the people of Malaysia, extending our hand in a gesture of friendship to you all.

Economic development in Malaysia has been truly spectacular in recent years. You have joined the ranks of the top 20 most competitive economies and are the 19th largest trading nation in the world. Malaysia has enjoyed a high rate of economic growth during the last few years and expects to grow 8.6 per cent this year.

The attainment of such high growth, along with relative price stability, moderate inflation and very low unemployment, is a remarkable achievement. I should like to congratulate Your Majesty's Government most warmly for what they have done to this end. Your political stability, your growth with equity - giving all Malaysians a sense of solidarity - and your well-conceived structural adjustment policies, with strong emphasis on the private sector and infrastructure development, have brought about this economic miracle.

Economic developments elsewhere in Southeast and East Asia have been most impressive as well. The ending of the Cold War and the unprecedented political stability in the region will further enhance these developments. It is obvious that nothing, save political turmoil, can prevent Southeast and East Asia from developing into economic powers comparable in every respect to Europe and North America. Eventually, these regions will be fully capable of bypassing them in terms of the dynamism and overall size of the economy. Some observers feel that this will take place sooner rather than later.

The world today continues to witness rapid and dramatic political changes. The Cold War has ended but the absence of ideological conflict has not brought about tranquillity. Local and regional conflicts still abound. They require the full attention of the international community, also in today's multi-polar world. Just like Malaysia, Finland has not shied away from its internationalobligations. For example, the efforts of both countries in UN peacekeeping operations are well-known and well respected. And I am truly pleased that Finland and Malaysia are now coming together in order to train Malaysian peacekeepers in Finland. I am convinced that both parties will greatly benefit from this cooperation.

Your Majesty will recall that Finland became a full member of the European Union just a few weeks ago. Our membership of the Union will in many ways clarify our international position. Finland will work constructively in the Union to promote policies supportive of international peace and security, trade liberalization and economic prosperity. Our approach is one of consensus rather than confrontation. We will continue to show respect for the cultures and values of others and trust that they, too, will respect our ways. I am convinced that, as a member of the European Union, Finland will be able to develop its relations with Malaysia even more effectively than before. In addition to our bilateral relations, we shall share in the Union's numerous activities in Malaysia. We shall, furthermore, actively participate in the political and security dialogue in Southeast and East Asia under the auspices of the ASEAN Regional Forum. And we shall make a constructive contribution to the ever-expanding dialogue between the Union and ASEAN.

As regards the bilateral relations between our two countries, it goes without saying that they are excellent in all conceivable respects. There are absolutely no political problems and trade is flourishing. We are now entering a stage where more attention needs to be given to improving investment flows, enhancing scientific and technological exchanges, developing human resources and promoting mutual understanding through cultural exchanges and tourism. Obviously, there is still plenty to do in all these fields. But I am fully convinced that we can progress rapidly and that both parties will benefit greatly from improved contacts at all levels.

On this note, I should like to propose a toast to the continued health and well-being of His Majesty Yang Di-Pertuan Agong Tuanku Ja'afar and Her Majesty Raja Permaisuri Agong and to the Government and people of Malaysia.