Malaysia, 1998

Allow me at the outset to

congratulate Mr. Opertti on his election to the presidency

of the General Assembly at its fifty-third session. I am

confident that with his vast experience and diplomatic skills

in the service of his country, Uruguay, he will be able to

steer our deliberations to a fruitful outcome.

May I also take this opportunity to express my

delegation’s sincere thanks and appreciation to

Mr. Udovenko, of Ukraine, for the admirable way in which

he presided over the last session of the General Assembly.

The global situation continues to be in a state of

flux. Six years after the end of the cold war, the world is

no more the safe place that we were led to believe it

would be. Old conflicts stubbornly persist, while new

ones have emerged.

The picture is no better on the disarmament front.

Although the signing of the Convention on landmines is

a laudable achievement in the field of conventional

weapons, the situation on the nuclear disarmament front

remains bleak. There has been little or no progress in

nuclear disarmament. Indeed, the situation has been

aggravated by nuclear tests conducted by two non-

signatories of the Comprehensive Nuclear-Test-Ban

Treaty (CTBT) and the Treaty on the Non-Proliferation of

Nuclear Weapons (NPT), posing a grave challenge to the

disarmament process. The international community must

make every effort to check further erosion of nuclear

disarmament regimes, while strengthening and promoting

universal adherence to them. In this regard, the nuclear

Powers have a special responsibility.

The situation in the Middle East continues to be a

source of grave concern. The dismal lack of progress in

efforts to bring the Palestine-Israel peace process back on

track is a matter of deep disappointment. It portends

adverse implications for international peace and security.

Lest the positive achievements of recent years be

dissipated, all parties concerned must exert every effort to

build on the peace agreements that were painstakingly

negotiated. Only their continued active engagement in the

peace process can influence developments in the right

direction. It should be stressed, however, that peace and

stability in the region cannot be attained by delaying and

frustrating the realization of the just aspirations of the

Palestinian people to an independent and sovereign

homeland.

We are dismayed by the ongoing unresolved conflict

in Afghanistan. The contending parties must realize that

a long-term solution to the conflict can be reached not

through military means, but through negotiations leading

to genuine national reconciliation. We call on them to set

aside provincial or sectarian interests, eschew violence

and seriously pursue a peaceful resolution of the conflict,

in the larger interests of their country and their people.

We condemn the violence directed at the personnel of the

United Nations, humanitarian organizations and countries

concerned.

On a slightly more positive note, Malaysia is pleased

about the successful conclusion of the national elections

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in Cambodia, in which the international community once

again played a constructive role. We urge all political

parties in Cambodia to close ranks and resolve outstanding

problems through dialogue, in the larger national interests

of Cambodia. The objective should be the early formation

of a Government that fully reflects the wish of the

Cambodian people for national reconciliation, pluralism and

development, and which will enable Cambodia to partake

in constructive regional cooperation with its neighbours.

Recent events have once again emphasized to the

international community the continuing threat to peace and

security posed by terrorism. Here I refer in particular to the

terrorist attacks in Kenya and Tanzania, which resulted in

the tragic deaths and injuries of many innocent people.

Malaysia reiterates its condemnation of terrorism in all its

forms and manifestations. Malaysia will join in efforts to

combat terrorism through the strengthening of international

cooperation in various fields on the basis of the supremacy

of the rule of law. There should be increased cooperation

among police and other security and law enforcement

agencies of Member States.

At the same time, at the political level, the

international community must work towards inculcating the

new global culture of peace that the Secretary-General has

so eloquently articulated. Malaysia believes that violence

begets violence, and the victims will unfortunately be

innocent civilians. Indeed, in a world armed with nuclear

weapons where the danger of nuclear terrorism is ever

present, every effort should be made not only to keep

terrorism at bay through enhanced international cooperation

but — and this is equally important — to address the root

causes. While terrorism may not be entirely eliminated,

understanding the reasons for its continued existence will be

an important step towards combating it.

Continued instability in parts of Africa is of major

concern to our Organization. Malaysia welcomes the

increased attention given to Africa by the United Nations

and its specialized agencies. Malaysia particularly welcomes

the initiative taken by the Security Council to highlight the

special problems of Africa in the Council earlier this year

and in the Council’s ministerial meeting on African issues

held last Thursday, 24 September. Furthermore, Malaysia

welcomes and will actively participate in a similar

discussion on Africa at this session of the General

Assembly. We are convinced that these discussions will

contribute to a greater understanding of the interrelated

problems of peace, security and development faced by

many African countries. Hopefully, they will lead to more

focused and coordinated programmes of international action

to overcome those problems. Given the continuing

disadvantaged position of Africa, there is a need for

sustained efforts on the part of our Organization and its

specialized agencies, as well as traditional and new

partners of Africa, to assist African countries in their

development needs. I am pleased to say that Malaysia, for

its part, has been able to make a modest contribution in

these efforts through technical cooperation and trade and

investment in a number of African countries. Malaysia

will continue to do so, within its limited resources, in the

spirit of South-South cooperation and solidarity with

Africa.

As we grapple with questions of international peace

and security, we should be equally concerned by the

current state of the global economy. Indeed, we see that

the most imminent threat to the well-being of our region

today is not political, ideological or military, but

economic. It is clearly evident that the financial crisis that

descended on East Asian countries over a year ago has

brought social misery, political instability and economic

turmoil. In certain countries there is now massive

unemployment. Economic growth has been severely

curtailed, and in fact has contracted. Virtually overnight,

the hard-earned gains of decades of hard work, careful

planning and prudent management have been wiped out.

Millions of people in the region most severely affected by

the crisis find that their place is now below the poverty

line. Their right to live a life that is free from the scourge

of poverty and to have a decent standard of living with

some basic necessities has been trampled by the

manipulators of the currency markets. Indeed, the super-

rich have impoverished the poor. It is ironic that this has

happened in the year when we celebrate the fiftieth

anniversary of the Universal Declaration of Human

Rights. Though they are pursuing policy responses that

are in line with International Monetary Fund

requirements, the economies of the affected countries

have not recovered. Instead, the contagious effects of the

crisis have spread to other regions and are affecting the

world economy. We may be sliding towards world

recession. We may even be on the verge of a global

depression if urgent steps are not taken through

international collaboration and cooperation to halt the

slide and reverse the trend.

While various factors contributed to the crisis, we

have no doubt that the financial turmoil was triggered by

speculative attacks on the East Asian currencies and the

resultant reversal of capital flows. The crisis reveals flaws

in the market mechanism and raises questions about the

relative benefits of liberalization and globalization. Unless

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these flaws are effectively addressed, the threat of a global

depression as devastating as the one that hit the world in

the 1930s could confront us. The international community

has to act urgently to reform the international financial

system to ensure against massive currency attacks,

manipulations and frequently excessive fluctuations.

It has been said that the markets would punish those

countries which do not possess proper financial structures

and disciplines and which lack transparency. But the

international financial market itself lacks transparency. In

today’s financial system, currency valued at more than $1.2

trillion is bought and sold every 24 hours. This trade is

largely carried out without any clear rules, and the very

Governments whose currencies are being traded are left to

fend for themselves in trying to defend the value of their

currencies. There is no system of surveillance, no open

reporting of any kind and no regulating authority such as

the World Trade Organization for this most lucrative trade

in the coveted commodity that is money itself. It is now

most urgent that the international financial market be

reformed. More than that, significant changes should be

made to the international financial architecture.

Malaysia has been advocating the need for change

over the last year. Initially, this call went unheeded. In

September 1997, our Prime Minister said in Hong Kong,

“A certain degree of uncertainty is fine, but an

absolutely uncertain financial world is no good for

anyone except of course for those who deliberately

create the uncertainty.”

It is clear that the situation is becoming increasingly

uncertain globally. Increasingly, the experts now agree. A

number of Governments also agree. The situation has

clearly got out of hand. There has to be change and

improvement in the international financial architecture.

There must be rules to encourage greater transparency.

Financial operators must abide by certain internationally

accepted regulations. They must accept closer supervision

so as to distinguish between genuine investors and currency

speculators. There has to be an earnest effort among

Governments to immediately engage in dialogues to revamp

the system. We must undertake an immediate collective

effort to find a comprehensive and workable solution to

what is clearly now a global problem. A few developed

countries cannot resolve this problem on their own. A few

developed countries cannot forever remain rich and

prosperous if more than two thirds of the world’s countries

remain poor and socially and politically unstable. This is

the time to enter into a genuine process of North-South

dialogue on an issue of great interest to both. Malaysia

welcomes the call by President Clinton for a special

discussion in Washington on the financial and economic

crisis that the world is facing today.

Meanwhile, in the absence of reforms or

internationally well-tested formulas or guidelines,

Malaysia has taken steps to impose currency and capital

controls in order to insulate its economy from currency

uncertainties while at the same time continuing to be

active in international trade and to welcome foreign

investment.

While countries In East Asia are doing their best to

overcome their problems in their respective ways and to

ameliorate the plight of their people, it is important that

the lessons of East Asia be learned by the rest of the

developing world. It is equally important that the

international community find consensus to formulate

necessary ground rules to keep in check the rapacious

nature of financial speculators and manipulators whose

only motivation is profit-making and profit-taking. This

Assembly, and in particular the Economic and Social

Council, can and should also consider this important

issue. The United Nations can put its moral weight behind

the call for regulating these speculative activities in the

interest of protecting or insulating vulnerable developing

economies.

In an increasingly interdependent and borderless

world, the globalization of trade and commerce is moving

apace. However, many developing countries can barely

cope with this, given their weak domestic, economic,

financial and legal structures. Globalization may be

desirable and, perhaps, inevitable and unstoppable as a

process and trend. Nevertheless, it is important to realize

that unless the developing countries are given time to

build up their structures and are actively assisted in the

process, they will not be able to participate meaningfully

in global free trade, still less compete with their partners

from the developed world. In such a situation, globalized

free trade would be a patently unfair form of world trade,

with the odds stacked against developing countries.

Indeed, it would be a continuing form of exploitation of

the weak and poor nations by those that are powerful and

rich.

Needless to say, in the wake of the sad experience

of the East Asian economies, the faith of many

developing countries in globalization has been very much

shaken and diminished. Consequently, many developing

countries view the prospect of further liberalizing their

4

economies with great caution and trepidation. It is

Malaysia’s conviction that as we approach the new

millennium, relations among States should be based on a

new paradigm predicated not only on equal sovereignty but

also on respect for dignity and mutuality of interests and

benefits. Only on that basis will we be able to reap the full

potential of globalization through genuine international

dialogue and cooperation.

The enjoyment of human rights is one of the most

important principles in the maintenance of justice and peace

in the world. The fiftieth anniversary of the Universal

Declaration of Human Rights this year affords us an

opportunity to reflect on both accomplishments and failures

in realizing the commitments enshrined in the Declaration.

The promise in the Declaration to end cruelty and injustice

still remains largely unfulfilled. Similarly, the promise to

provide a decent living to all has been threatened by the

negative effects of globalization and the inadequate

attention given to economic, social and cultural rights.

This fiftieth anniversary coincides with the review of

the Vienna Declaration and Programme of Action. The

review will provide us with an opportunity to make a

thorough and honest assessment of the successes and

failures in implementing the commitments made five years

ago. It would be timely for discussions to focus not only on

rights but also on obligations. It is imperative that the

conferment of rights should be linked to the fulfilment of

obligations and clearly defined duties and responsibilities.

The imbalance in emphasis between political and civil

rights on the one hand and economic, social and cultural

rights on the other has to be clearly addressed in order for

the promotion, protection and enjoyment of all human

rights to be fully achieved.

The right to development, recognized as universal,

inalienable and an integral part of fundamental human

rights, has not been fully realized. There is still no effective

international cooperation to create a true environment of

equitable economic relations which would facilitate the

realization of this goal.

We may recall that the Secretary-General appropriately

designated the last session of this Assembly as the reform

Assembly. He tabled his package of reform proposals for

our consideration and appropriate action. After much

debate, many of these proposals were approved and are

now in various stages of implementation. It is hoped that

with the implementation of the reform package the

Organization will become more action-oriented and more

focused on and responsive to the needs of Member States.

Certainly, greater rationalization of the plans and actions

and more effective management will lead to increased

efficiency in programme implementation as well as to

better and more effective and efficient utilization of

human resources.

Let us continue to give our strong support to the

Secretary-General in his continuing efforts to fully and

effectively implement his reform proposals. Let us also

extend our support to his efforts to strengthen the

Organization in ways that will benefit all Member States.

Certainly, a positive contribution in this regard is to

ensure our continued financial support to the

Organization, thereby easing its burdens at a time of

increasing demands being made upon it. The

establishment of the proposed Revolving Credit Fund

might help ease the financial crisis of the United Nations

temporarily. In the long term, however, the only effective

way of resolving the problem is through the timely

payment by Member States of their dues.

What is most disappointing, however, is the lack of

any progress in an important aspect of the reform of our

Organization. I refer to the discussions on the reform and

restructuring of the Security Council in the high-level

Working Group of the General Assembly. Individual

Member States, as well as groups of States, have made

many important proposals on various aspects of the

reform and restructuring of the Council, from its

enlargement and composition to its working methods,

including the use of the veto. Regrettably, all these

proposals aimed at making the Council more

representative, democratic, transparent and accountable,

have not received the desired consensus.

Clearly what is lacking is not ideas and proposals

but the necessary political will on the part of Member

States, particularly those with strong views on specific

aspects of reform of the Council. If the reform and

restructuring of the Council continue to elude us in its

sixth year of discussion in the Working Group, we have

only ourselves to blame for our inability to demonstrate

our reasonableness, our goodwill and the necessary

compromises required from all of us to break the current

impasse. Additional years of continuing with the sterile

debate in the Working Group will only increase the

creeping sense of cynicism and pessimism among

Member States, which would be seriously detrimental to

the reform process.

As its contribution to the reform debate, Malaysia

reiterates its call for a comprehensive reform and

5

restructuring of the Security Council. We continue to

advocate enlargement of the Council in both categories of

its membership, permanent and non-permanent,

circumscribing, if not totally abolishing, the use of the veto

and improving the working methods of the Council, which

should include increased transparency, accountability and

participation by the larger membership of the Organization

through more open debates on issues of importance to the

international community.

As the discussions in the Working Group enter their

sixth year, it is the earnest hope of my delegation that there

will be increased focus, seriousness and urgency on the part

of Member States in arriving at a consensus. Otherwise, we

will lose forever the remaining window of opportunity to

reform the Council. We should remind ourselves that we do

not have the luxury of time and that this opportunity for a

comprehensive reform of the Council, if not realized, may

not present itself again for many years to come.

In conclusion, let me reiterate Malaysia’s belief in the

importance of these annual debates in the General

Assembly and their relevance to our continuing efforts to

enhance international cooperation and collaboration at the

multilateral level. The statements by Member States in this

Assembly serve to inform us and challenge us to further

action in pursuit of our common goals. In the final analysis,

the future viability of the United Nations will depend on the

perception by Member States of the continued relevance of

the United Nations to them and on their continuing support

for the Organization.