Speech to National Press Club, Kuala Lumpur

14 April 2005

Thank you for the opportunity to speak to you about last week's historic visit to Australia by the Prime Minister of Malaysia, Dato' Seri Abdullah Ahmad Badawi.

I would also like to thank you individually - and the Malaysian media more broadly - for covering the visit so comprehensively. As a result of your efforts, the Malaysian public is now aware of the concrete results of the visit and of the warmth with which Dato' Seri Abdullah was received.

In a very real way you, the media, were a focal point of the visit.

The Australian Prime Minister, Mr John Howard, opened his speech at the lunch in the Great Hall of Parliament House, held in honour of Prime Minister Abdullah, by noting that no relationship between two countries in recent years had attracted more commentary than the relationship between Australia and Malaysia. He said the relationship had been constantly under the microscope, and constantly the subject of conjecture, much of it negative.

I couldn't see how the journalists among the 400-strong crowd in the Great Hall responded to Mr Howard's remarks. But I did notice Dato' Seri Abdullah smiling and nodding in agreement.

Mr Howard then went on to comment on how the reality of the relationship differs from many of the media-driven perceptions about it. Again, Prime Minister Abdullah nodded in agreement.

To illustrate his point, Mr Howard briefly touched on two areas. First, he referred to the vitality and durability of the educational bonds between Australia and Malaysia. Secondly, he observed that the defence relationship between Australia and Malaysia is closer than the defence relationship Australia has with any other nation in the immediate region.

Naturally enough, these two important elements in the bilateral relationship gained a lot of attention throughout the visit, not just during the speeches at Parliament House.

Raw numbers, which both Prime Ministers quoted frequently during the visit, give us some idea of the dimensions of the education relationship.

Around 200,000 Malaysians have passed through Australian institutions of learning. Twenty thousand study there at the moment, and a further 13,000 undertake Australian courses here in Malaysia.

Monash University was the first foreign university to open a campus in Malaysia and two other Australian universities - Curtin and Swinburne - have since followed Monash's example. Demand for Australian education by Malaysians is strong and growing.

Education, of course, is about much more than statistics and the two Prime Ministers were very conscious of that when they discussed the topic in Canberra.

Without doubt, because of our education links, Australia has trained people who have been vital for the impressive economic growth of Malaysia.
But the value to Malaysia and Australia has been much more than the qualifications which Malaysian students have gained. Even more important have been the new and more profound attachments that education has helped to forge between Australians and Malaysians.

For those 200,000 Malaysian graduates of Australian institutions, Australia was their home away from home for several years. While remaining proudly Malaysian, they became part of the Australian family too.

And while accepting that their new friends would ultimately return to Malaysia, Australians have gladly reached out to these newcomers from Malaysia and done their best to make them feel at home Down Under.

Through education, more than anything else, people-to-people ties between Australia and Malaysia have flourished and will continue to flourish in the future.

Ladies and gentlemen

To highlight the defence relationship, Mr Howard mentioned during his speech that in the very week that Prime Minister Abdullah was visiting Australia, Malaysian and Australian military personnel were taking part in two military exercises in our region.

Because his time was limited, and certainly not because there is anything secret about the close military cooperation between Australia and Malaysia, Mr Howard didn't give any additional information about these exercises.

I'm happy to have the opportunity to fill in that gap.

Bilaterally, infantrymen from a Darwin-based battalion and their counterparts from the 2nd Battalion of the Royal Malaysian Regiment were participating in a week of joint training, followed by a motorised advance from Kulim to Sungei Petani, culminating in a battalion-sized operation.

At about the same time, under the auspices of the Five Power Defence Arrangements or FPDA, Malaysian and Australian air and naval personnel were engaged with their counterparts from the three other FPDA partners in air and maritime exercises involving eight ships and 64 aircraft.

There was nothing remarkable about those exercises. They were simply typical of the rich tapestry of military-to-military engagement that has been a feature of bilateral relations since independence.

But it was their very normalcy that made them remarkable in the context of the first visit to Australia by a Malaysian premier in 21 years - a relationship that had been marked by political difficulty at one level was also characterised by very extensive practical cooperation.

You may be surprised to learn that in addition to the seven bilateral exercises and the plethora of activities under the FPDA, over 120 members of the Malaysian Armed Forces attend training courses in Australia each year, about ten Malaysian personnel are on attachment to the Australian Defence Forces and eight ADF personnel are attached to the MAF.

Australian and Malaysian servicemen and women know each other very well and it is a partnership in which we take great pride.

Just as Mr Howard observed that the defence relationship between Australia and Malaysia is closer than the defence relationship Australia has with any other nation in the immediate region, senior Malaysian military officers and defence officials have told me on several occasions that Malaysia's most substantial defence relationship is with Australia.

The security relationship between Australia and Malaysia is, of course, about much more than just defence relations.

Mr Howard and Dato' Seri Abdullah also agreed that the work of our police and intelligence services was highly valued by both countries.

Our security agencies will continue to make Malaysia, Australia and the region a safer place by exchanging information, undertaking joint training and engaging in joint operations.

These efforts will continue to target the contemporary threat of terrorism, but our cooperation in fighting trans-national crime will remain focused on drug runners and people smugglers as well.

When talking about responses to terrorism Mr Howard underlined that Malaysia is an exemplar of moderate, progressive Islam.

If I could quote him directly for a moment, he said: "A moderate progressive Islam addressing the needs of people, understanding the proud place of Islamic nations in the world, is a very powerful and enduring response to the extremists and the zealots who would seek to play on the disadvantage - perceived or otherwise - of those who are unhappy with their circumstances in life."

These questions also formed an important part of the private discussions between our Prime Ministers, as did the question of Palestine.

Without going into details of their talks, it was clear that both leaders are seized of the importance of the Palestine issue.

Both are also acutely aware of the renewed opportunity for a settlement that has recently emerged.

And both are hoping fervently that leaders in Palestine and Israel, with the support of the international community, will not allow extremists to hijack this opportunity.

Ladies and Gentlemen

One of the highlights of Dato' Seri Abdullah's visit was the speech he gave to the Asia Society of Australia on Islam Hadhari.

The audience, comprised largely of prominent Australians from the business world and public life, listened intently to Prime Minister Abdullah's views on an inclusive, tolerant, progressive Islam that emphasises the importance of economic development and social well-being.

After the speech, which was met with sustained applause, several of the guests told me it was one of the most insightful and stimulating addresses they had heard at an Asia Society of Australia event - high praise indeed.

This sort of interaction between Australia and Malaysia - though not always at prime ministerial level of course - will be enhanced by the Australia Malaysia Institute, the establishment of which was announced by the Australian Minister for Foreign Affairs, Mr Alexander Downer, during Prime Minister Abdullah's visit.
The aim of the Institute is to strengthen further Australia's people-to-people and institutional links with Malaysia, focusing on exchanges of young politicians, intellectuals and media representatives, as well as cultural exchanges.

Ladies and Gentlemen

For me, the announcement by the two Prime Ministers of the decision to negotiate a bilateral free trade agreement was a highlight - and a relief.

Since I arrived in Kuala Lumpur over two years ago, I have watching a little anxiously as Singapore then Thailand concluded free trade agreements with Australia.

I was naturally glad that, through these free trade agreements, Australia's commercial relations with Thailand and Singapore were being put on a better footing.

But I was also a little concerned that an opportunity for Malaysia and Australia to strengthen trade and investment links may pass us by.

On the whole, our trade and investment relations are strong - but they are well below potential.

In particular, I hope that the news about the Malaysia Australia Free Trade Agreement, or MAFTA, and the improved business environment it should foster, will narrow the imbalance in investment that currently exists.

Malaysian investment in Australia, which we welcome warmly, is currently valued at around 18 billion ringgit. By contrast, Australian investment in Malaysia is less than 1.5 billion ringgit.

FTA negotiations will start next month. Our Trade Ministers will be able to review progress when the Australian Trade Minister, Mr Mark Vaile, visits Malaysia with a business delegation in July for the annual Joint Trade Committee meeting.

I should mention that two other Australian ministers are scheduled to visit Malaysia in the coming months. The Attorney General, Mr Philip Ruddock, will be here from 25 to 27 April, and the Minister for Education, Dr Brendan Nelson, is expected in July.

And, as you know, Prime Minister Abdullah kindly invited Prime Minister Howard to visit Malaysia, an invitation that Mr Howard warmly accepted.

Malaysian ministers have also been visiting Australia more frequently. In recent months we have been delighted to host your Ministers for Agriculture and Agri-based Industry, Health, Higher Education, Natural Resources and Environment, Human Resources and Tourism.

In addition, of course, a total of seven ministers and one deputy minister accompanied the Prime Minister to Australia last week.

Ladies and Gentlemen

I am confident that the more crusty journalists in your midst, if they haven't dozed off already, are wondering "where's the story in all this?"

I know good news stories don't attract attention as easily as stories about differences.

As someone famously said, "harmony seldom makes a headline."

So I think you will be relieved to know that on more than one occasion last week both Mr Howard and Dato' Seri Abdullah mentioned that Australia and Malaysia will continue to differ on some issues.

Dato' Seri Abdullah told the business community that he and Mr Howard would solve any political differences that might emerge, and that others engaged in the Australia-Malaysia relationship should simply get on with the job of making a strong relationship even stronger.

Mr Howard said, "All nations that treat their relationship seriously will, from time to time, have some differences. I've always adopted the approach of trying to emphasise the strengths and I believe that one of the great consequences of this visit by the Prime Minister of Malaysia will be that there will be a greater focus on all the things that Australia and Malaysia have in common."

Keeping those sentiments in mind, I'd like now to touch on three issues, which many commentators have identified as problematic in the relationship between Australia and Malaysia: the East Asia Summit, the Treaty of Amity and Cooperation, and the question of pre-emption.

Let's start with the East Asia Summit. Mr Howard reiterated that he puts the highest value on the bilateral relationships that Australia has with the countries of the region and in that context he was particularly pleased with the way the visit of Prime Minister Abdullah had taken Australia-Malaysia relations forward.

He also believes that on the strength of Australia's current and historical role in the region, Australia would be a valuable contributor at an East Asia Summit. So, if we were invited, Australia would be happy to attend.

But Mr Howard noted that this remained a matter for ASEAN to decide, and that Australia was not knocking on doors begging admission. He said, "Australia is a strong, respected, involved country in the region and that will be the case whether or not we are at this summit."

What did Dato' Seri Abdullah say? He also said that participation in the East Asia Summit was a matter for ASEAN to decide.

He then went on to say that it was important that Australia and Malaysia work together and try to be as close as possible. His policy, he said, has been one of inclusiveness but the matter needed to be discussed further in ASEAN.

As we know, ASEAN foreign ministers have since discussed the matter further - at their retreat in the Philippines a few days ago.

No decisions have been made yet - that will be up to leaders, but I think it is fair to say that Australia is encouraged by developments at the foreign ministers' retreat, though we recognise that the East Asia Summit is still very much a work-in-progress.

Now to the question of the Treaty of Amity and Cooperation, the TAC.

Just as the East Asia Summit is a work-in-progress, so too is Australia's consideration of the TAC.

At the outset, though, I want to reiterate that Australia appreciates fully ASEAN views on the treaty and acknowledges the contribution of the TAC to peace and stability in South-East Asia.

I believe that it is equally important that ASEAN countries acknowledge Australia's historical concerns about the TAC.

In brief, these have been threefold.

Firstly, the membership of the TAC's High Council, which would preside over any security disputes in the region, is not open to all signatories; so in that sense the TAC, notwithstanding its other merits, seems to be an unequal treaty.

Second, we have not yet been convinced that some of the principles underlying the treaty can be reconciled with our alliance with the United States.

Thirdly, we wonder whether the principle of non-interference in the domestic affairs of other countries would circumscribe our ability to comment on, for example, the situation in Myanmar, which is of great concern to many countries of the region.

These are not trivial issues. Australia takes its treaty responsibilities very seriously.

But, as Mr Howard has said as recently as today, they are issues that we are willing to discuss with our friends in ASEAN.

I don't think there is much more to say about the TAC until those discussions have taken place.
Finally, ladies and gentlemen, the question of pre-emption.

Recently, Mr Howard has reiterated two points. The first one is that as a last resort Australia believes it has the right to take action to defend itself. His second point was, and I quote him, "In practical terms it's not going to arise with a country like Malaysia, particularly as we have very strong defence ties."

What has Prime Minister Abdullah said recently? In reply to a specific question on this issue, he told the joint press conference, and I quote him directly too, "We are the best of friends. There are some issues on which we will have different opinions. But that doesn't matter really; what is important is that if we look at a bigger picture there's so much that we can do together. But the press sometimes, they twist that."

In front of so many members of the press, let me end on that note.

I hope my speech, the text of which is available, has pre-empted most of your questions, though I am, of course, more than happy to try to respond to any queries or comments you may have.

James Wise
Australian High Commissioner
Kuala Lumpur