Download Intervention de Monsieur Henri GRETHEN

Welcome address by
Mr. Henri GRETHEN
Minister of the Economy
on the occasion of the Luncheon Talk
“Enhancing Malaysia – Luxembourg Economic
Relations” by the Rt. Hon. Dr. Mahathir Mohamed,
Prime Minister of Malaysia
Luxembourg, June 12th 2002
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Mr. Prime Minister,
Excellencies,
Ladies and Gentlemen,
Distinguished Guests,
It is a great honour and pleasure for me to be given today
the opportunity to host the luncheon talk that has as a
challenging objective to enhance economic and trade
relations between Luxembourg and Malaysia.
In my welcome address I would like to provide you with
basic information on our country and our economy, and
dwell on the economic relationship between Malaysia and
Luxembourg.
Ladies and Gentlemen,
From
a
steel
based
economy,
Luxembourg
has
consistently developed into an international financial
centre and a central industrial location with highly
developed
infrastructures
telecommunication and energy.
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in
transportation,
Today there is also a substantial potential for the
development
of
the
communication,
media
and
information industry.
A high standard of living has allowed Luxembourg to
become an enjoyable place to live and to work, not only
for the resident population, but also for an increasing
number of commuters from our neighbouring countries.
This high standard of living reflects also positively on the
country's key economic figures.
Last year, gross domestic product has grown in real terms
by 3,5% compared to a 1,6% average for the Euro zone.
Luxembourg has also by far the lowest unemployment
rate in Europe with 2,6% in 2001.
Though the unemployment rate is low, an impressive job
creation during the last ten years has allowed the total
workforce to increase substantially. In 2001, employment
has grown by 5,6%.
Inflation with 2,7% remains below the EU average.
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The Government budget has been in structural surplus
since the mid '80s allowing for a consistent lowering of the
tax burden on the economy and on wage earners.
Foreign trade is of vital importance for the Luxembourg
economy. Our country is exporting over 80% of its total
production.
The bulk of these exports are directed towards the
European Union countries.
The main export products are steel, machinery, plastics,
rubber and chemical products as well as tobacco,
ceramics and glass.
The traditional deficit of the balance of trade is largely
compensated by the surplus of the balance of services.
Finance, banking, insurance and media technologies are
the most important sectors of the service industry in
Luxembourg.
Ladies and Gentlemen,
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What are the key factors, which have contributed to the
dynamic development of our economy?
Above all, a stable and predictable economic, social and
political environment has favoured business confidence
and encouraged the setting up of many new companies.
In addition, a policy of openness to trade and investment,
a clear and modern legal framework have been basic
ingredients for economic development.
Continuity in the implementation of economic policy and
the absence of major labour disputes for over 70 years
are all elements which contribute to enhance private
initiatives for business growth.
A good framework for education and research is of
increasing importance. Today investments in skills and
human resources by companies increase substantially.
An overall policy promoting competitiveness and the
Government's continued commitment to reduce the
overall
tax
burden
favour
investment.
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entrepreneurship
and
Because of the historical dependence on a single
industry,
i.e.
steel,
the
Government
has
been
implementing a vigorous economic diversification policy
since the mid-1970s.
The Government will pursue this policy and give particular
emphasis to new technologies.
The objective of the policy is to further diversify the
economic structure, which today heavily depends on
financial services.
The focus of the policy is:
overall
 to encourage activities with long term growth potential
in the European market;
 to promote research and development.
and more specifically
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 to
develop
industrial,
media,
information
and
communication technologies;
 and to promote the automotive component industry.
Many international companies be they from North
America like Goodyear, Delphi, Dupont or Husky, from
Japan, such as TDK, Fanuc or Teijin, and also from other
European countries are already accessing the European
market from Luxembourg. Some of them have their
European Headquarter functions in Luxembourg.
The worlds largest steel maker ARCELOR is operating
successfully from Luxembourg throughout a global
market.
The presence of over 180 banks with experience in the
financing of industrial investment allow a company to find
the necessary capital to develop its business.
Luxembourg is also the home of a key player in satellite
television services, SES-GLOBAL. Founded in 1985,
“Société Européenne des Satellites”, is today the primary
operator on the European market of the ASTRA Satellite
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System with a reach to over 91 million European
households.
Satellite transmission and return channel technology will
open
new
opportunities
for
Intranet
and
Internet
applications and will help business to be more costeffective by providing substantial speed and efficiency
improvements to their communication processes.
An increasing number of companies active in information
and communication technologies have developed their
business in Luxembourg.
Positive policy measures such as industrial parks and
long term financing to welcome foreign investors support
the start-up of new companies.
A favourable social and tax environment facilitates the
implementation and improves the return of investment
projects in Luxembourg.
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Ladies and Gentlemen,
I do not want to prolong my presentation on the
Luxembourg
economy
and
the
Government's
development policy.
Today we have come together to enhance economic
relations between our two countries.
Allow me to conclude with a glance at the economic
relations between Luxembourg and Malaysia.
The Luxembourg Government has in the recent past
organised two trade missions to Malaysia headed by the
Crown Prince of Luxembourg: a first one in 1996 followed
by a second mission in 1998. I am convinced that after
your visit to Luxembourg, Mr. Prime Minister, new
opportunities for a next mission to your country will arise.
The Luxembourg manufacturing sector has consistently
expanded its presence and activity on the Malaysian
market.
Indeed, the Luxembourg steel industry is well represented
in Malaysia since 1992, with the presence of Trade Arbed
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Malaysia in Kuala Lumpur that was established with a
representative status and was incorporated in 1997.
TrefilArbed Malaysia was established in 1999 as a
regional office.
Paul Wurth is active on the Malaysian market, through a
local agent under the responsibility of PW Taiwan.
Malaysian companies have a high interest in the new
"PRIMUS" technology developed by Paul Wurth for the
treatment and recycling of industrial products containing
heavy metals.
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DOMETEC, former Electrolux, a Scandinavian company
with production facilities in Luxembourg, has provided
specialised equipment for safe storage and transport of
vaccines and medical refrigerators for Malaysian hospitals
since 1983. The company is even considering new
projects, mainly in the area of upgrading of blood banking
equipment in public hospitals and improving the cold
chain of vaccines throughout Malaysia.
I.E.E, International Electronics Engineering, a company
specialised in the production of force sensing resistors for
the automotive industry has developed contacts with the
Malaysian car producer PROTON. I.E.E is currently
selling these sensors to all major European car producers
as well as to Japan, to Korea and to the United States.
The
Malaysian
company
SRG
Valve
Technology
Malaysia, part of the Soon Seng Industrial Products group
has signed a joint venture in Mai 2002 with a member
company of the Luxembourg ROTAREX group.
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The
Malaysian
company
KW-TEC,
headed
by
a
Luxembourg citizen, is specialised in the concrete and
engineering business and is selling its products to the
European market.
I am particular pleased, as a friend of the French
gastronomy, that a Luxembourg citizen has opened a
French Style restaurant in Kuala Lumpur in December
2001.
And as I am also a friend of the Luxembourg wine, I am
also pleased about trade links between a Malaysian
company
and
the
Luxembourg
wine
maker
“Les
Domaines de Vinsmoselle”.
In order to develop trade relations between two countries,
you need obviously good connections. And in my capacity
as Minister of Transports, I can assure you that I will do
my
best
to
Luxembourg
enhance
and
direct
Malaysia.
connections
The
flight
between
connections
between Luxembourg and Malaysia have a long history.
May I remind you that the first CARGOLUX flight using a
CL-44 aircraft and landing at Subang International Airport
dates
back
to
1974.
Since
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January
10th
2002,
CARGOLUX, the Luxembourg all cargo freight operator,
has launched its 6th weekly frequency to Malaysia.
As you can see, the relations between Malaysia and
Luxembourg are well developed. This is also illustrated by
the presence of 7 companies at the EU-Malaysian
Partnership conference held at Putra World Trade Centre
two weeks ago.
Mr. Prime Minister,
Ladies and Gentlemen,
Though many partnerships exist already between our two
countries, I am convinced that there are a lot more
opportunities for strengthening the relations between our
countries.
I do hope the Malaysian companies present here today
can
forge
counterparts
new
and
valuable
our
two
links
with
countries,
Luxembourg
through
an
enhancement in bilateral trade and investment relations
can further develop the ties between our populations.
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I for my part, and the Luxembourg community as a whole,
are looking forward to these prospects.
Thank you for your attention.
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