 Your Excellency Prime Minister Najib Tunrazat, Ambassador Jamaluddin, Tansri Hashim, Tansri Anwar, Dr. Rebecca, Dr. Mahani, friends from Kuala Lumpur in the United States, ladies and gentlemen, welcome. Good morning and Salamat bagi. Welcome to the Center for Strategic and International Studies. CIS is honored to join hands with our partner institution in Kuala Lumpur, the Institute for Strategic and International Studies, with whom we've signed a MOU this morning to look at U.S.-Malaysia relations in more depth, led by Dr. Dato Mahani in presenting a discussion on U.S.-Malaysia relations today here in Washington, D.C. The timing for our discussion, of course, could not be better. Prime Minister Najib has just consulted bilaterally with his colleague President Barack Obama. Both countries have a deep reservoir of cooperation to draw on and are now under the leadership of these two men stepping into a new era of renewed cooperation. We'll explore these opportunities in detail today in our session. In the course of our program, we'll hear directly from the visionary behind this new chapter in our relations, Prime Minister Najib, as well as from practitioners and policymakers in the areas of security and trade and investment cooperation. We'd like to thank all of you for attending today and encourage you to engage with discussion and good questions and comments, which is in the CSIS tradition. Let me now turn to our guest of honor and the man who is driving this new relationship and taking Malaysia into new areas, Dato Shri Tuen ... sorry, I didn't ... I promoted you already. I did not mean to do that. There we have a headline already. Let me now invite the Prime Minister to make his remarks, and Prime Minister, welcome again to CSIS. Thank you, Ernie, for your very warm introduction. I can understand the slip there. Dato Ernie Bauer, Minister of Excellencies, Distinguished Guests, Friends, Ladies and Gentlemen. I'm very pleased to be able to have this opportunity to speak to you today. I commend the Center for Strategic and International Studies, CSIS, and the Institute of Strategic and International Studies, ISIS, for your initiative in organizing this seminar and the untiring and your deep commitment to further strengthen U.S.-Malaysia bilateral ties. Both institutions have a history of collaboration. I am heartened that the spirit of cooperation and friendship is strong and certainly augurs well for the bilateral relations of both countries. I strongly believe in the efficacy and wisdom of having tracked two or none official exchanges such as yours. They are invaluable for gathering rich insights, exchanging perspectives, and even to iron out differences that are inevitable in any relationship. I am pleased to note that our two prestigious institutions, ISIS and CSIS, have formalized a while ago, a little while ago, a memorandum of understanding that was set into motion a dynamic and fruitful dialogue process. Indeed, there is much to look forward to. There are many complementarities and synergies to be harnessed. As you know, Malaysia is located in the fastest-growing region in the world. We are a founding member of ASEAN, one of the factors responsible for achieving peace in our part of the world. ASEAN is striving to be more coherent and integrated in years to come. Malaysia has actively served as a bridge between Muslims and the West. Muslims make up slightly less than a quarter of all humanity, over 60 percent of which live in Asia, but are still misunderstood. I encourage CSIS and ICs to endeavour towards correcting these misperceptions and to explore ways to bring about common prosperity, peace and stability to the international community. This morning, I would like to spend my time to outline some of the more recent initiatives that Malaysia has taken to strengthen peace and security within its own borders in the region and the world. Ladies and gentlemen, the post-Cold War era has presented important opportunities for new regional and global security initiatives. With the crumbling of ideological divides between the East and the West, there have been greater occasions to cement constructive engagement and cooperation on pressing issues of regional and international security. The conflict and distrust that marked relationships during the Cold War has now given way to close friendships not only among Southeast Asian nations, but also between major powers and ourselves. Southeast Asia places such a premium in America's engagement in our multilateral processes. Malaysia in particular welcomes the Obama administration's endorsement of multilateralism as the preferred route to problem-solving. We also welcome its endorsement of ASEAN centrality in regional processes. Important initiatives such as active dialogue between the United States and regional leaders and the recent signing of the Treaty of Amity and cooperation are an affirmation of the close ties between the United States and ASEAN. Initiatives such as these go a long way towards strengthening the security architecture of the Asian region. We therefore look forward to building upon the efficacy of our existing security institutions with our American counterparts in order to advance our mutual security interests at both regional and global levels. Ladies and gentlemen, the proliferation of nuclear weapons and related materials represents one of the most pressing challenges for the international community. It brings the terrifying prospect that more countries could acquire or develop nuclear capabilities, but more horrifying the possibility that terrorists or non-state actors could gain control of nuclear weapons poses a fundamental threat to us all, irrespective of which nation is targeted. That is why the leaders of over 40 nations and I responded to President Barack Obama's invitation to the recent Nuclear Security Summit. I believe that the summit has advanced the crucial goal of cultivating a global consensus on the severity of the threat from nuclear terrorism and how we could deal with this threat both at the national and international level. In this regard, I would like to reiterate that Malaysia is committed to us ensuring that nuclear materials and technologies do not fall into the wrong hands. This commitment is clearly demonstrated by the recent passage of the 2010 Strategic Trade Bill through the lower house of the Malaysian parliament. It provides for severe criminal penalties for those involved in the illicit export, transshipment, and brokering of weapons of mass destruction, their delivery systems, and related technologies. This piece of legislation will enhance Malaysia's ability to contribute to global counter-proliferation efforts. However, establishing a legal framework is only the first step. The Malaysian government therefore intends to see to it that this legislation is strictly enforced and that our law enforcement agencies are provided with the necessary resources to do so. At the center of the international community's efforts to prevent the spread of nuclear weapons is the Nuclear Non-Proliferation Treaty. As most of you are aware, the NPT Review Conference will be convened in New York next month in May. The 2005 Review Conference showed the difficulties inherent in arriving at a global consensus on how the non-proliferation and disarmament agenda can be moved forward. It is important that we do not go back to our capitals the way we did in 2005 with our tail between our legs. For this year's conference to succeed where the previous one failed, it is crucial that the nuclear weapon states demonstrate their commitment to nuclear disarmament. Malaysia therefore welcomes President Obama's vision of a world without nuclear weapons although the timeline might take a bit longer but we fully subscribe to this noble vision as articulated in his speech in Prague in April of last year. This is an aspiration that is very close to the hearts of Malaysians and Southeast Asians as evidenced by ASEAN's establishment of the Southeast Asian Nuclear Weapon Free Zone. We are also encouraged by the 2010 nuclear posture review which reduces the role of nuclear weapons in U.S. security policy. The declaration that United States will not use nuclear weapons against NPT-compliant non-nuclear weapon states I believe a step in the right direction. Ladies and gentlemen, when I took over office a year ago, one of the things that I decided was that there must be a new beginning in our bilateral relationship. I decided that we should redefine, reconfigure this relationship because it is so important but we have not fully realized its potential. Therefore, I have committed myself to working very closely with the present administration and I am delighted that much has happened over one year in so many ways and I am very confident that this bilateral relationship will grow from strength to strength. One of the things that I have responded very positively is that Malaysia will play our part in areas that we could be helpful and this includes our new commitment to be involved in Afghanistan in ways of providing help in the reconstruction of that country in terms of training, capacity building, civil reconstruction and medical assistance. We are now in the process of working out the details but the commitment has been delivered and I delivered it personally to President Obama. Ladies and gentlemen, the interests of Malaysia and United States intersect in many areas and none more so in the struggle against terrorism. Admittedly, we do not always agree in our approaches in addressing the threat posed by terrorist groups but we do not always have to, not when we fundamentally agree on the objective and the seriousness of the threat itself. The unprecedented levels of cooperation between Southeast Asia's security forces, particularly those of Malaysia, Singapore and Indonesia, have eroded the ability of the Jemaah Islamic Network to terrorise the people of our region but we cannot afford to be complacent as the saying goes. Just when some thought the days of major terrorist attacks in Southeast Asia were behind us, we were gravely reminded why we cannot never let our guard down, particularly when recently we uncovered a group of not Jemaah Islamia but real hardcore al-Qaeda operatives who tried to get into Malaysia. The United States has played a positive role in building the capacity of Southeast Asia's security forces in the struggle against terrorism. Indeed, cooperation between Malaysia and the United States, particularly between our security agencies, has never been stronger. It is my hope that this cooperation will be sustained long into the future. Securing Southeast Asia's maritime environment represents another area where the interests of Malaysia and the United States converge. Both countries wish to ensure the safe, secure and safe passage of vessels through major sea lanes of communication. The best way to achieve this is by building the capacities of the region's maritime forces. The figures for piracy incidents in Southeast Asia over the last decade bear this out. In 2000, there were 242 incidents in our regional waters. Last year, that number had dropped to 45. This has been a result of collaborative efforts by Southeast Asia's military forces. And the capacity to do so has been achieved in no small part due to the assistance of countries from outside the region, including Japan and the United States. For example, through the annual cooperation afloat readiness and training exercise or carrot, the United States Navy has shared its expertise with the maritime forces of Malaysia, Brunei, Indonesia, Philippines, Singapore and Thailand. Malaysia regards such exercises as valuable opportunities indeed. And I hope Malaysia and the United States could explore ways to further expand our collaboration in the maritime domain. Malaysia's location means that it is largely protected from natural disasters. But because our security and our prosperity is inextricably linked with our neighbours, Malaysia cannot afford to ignore the need to prepare for such contingencies. The Indian Ocean tsunami in 2004 and Cyclone Nagus in 2008 showed that assistance from outside the region could be critical in the event of exceptionally severe disasters. The people of Southeast Asia appreciate America's assistance in our moments of need. There is significant potential for collaboration between Malaysia and the United States in responding to natural disasters. And I hope this could be explored between our two countries. Ladies and gentlemen, Malaysia, along with other ASEAN countries, is cognizant of the changing dynamics of international security in the 21st century. In this day and age, the global security agenda is no longer exclusively defined by traditional security issues. International security has now expended to include non-traditional security issues such as human trafficking. Malaysia recognises the need for such issues to be included within national and regional security efforts. If non-traditional security issues are left unaddressed, they can pose severe and significant security implications. Human trafficking has emerged as both a regional and global security issue in recent times. Global statistics indicate that around 2.7 million people are being trafficked worldwide annually. The majority of whom are women and children. Malaysia has undertaken several important initiatives to address the problem of human trafficking. First, the Malaysian Parliament passed the Anti-Trafficking in Persons Act in 2007. As Malaysia's first anti-human trafficking legislation, it provides the legislative means for Malaysian authorities to pursue and convict human traffickers. As of 10th February 2010, 280 syndicate members have been arrested. More than 1,400 men, women and children from 17 countries have been rescued between February 2008 and 2010. The second initiative is a national action plan against human trafficking. This plan serves as the blueprint for a comprehensive and integrated approach among Malaysian government agencies to effectively tackle the problem of human trafficking. Ladies and gentlemen, United States and Malaysia's investment and economic relationship is another key pillar in our bilateral relationship. The United States is Malaysia's major trading and investment partner. In 2009, Malaysia's total trade with the United States is $35 billion, representing 11.1 percent of Malaysia's total trade. The United States direct investment in Malaysia in 2009 amounted to US $300 million, or 8.4 percent of total FDI. And I am personally, with my other colleagues, determined that this number will increase in the years to come. As a matter of interest, I was personally involved in encouraging the Coca-Cola company to invest in Malaysia. The discussion started during APEC, Singapore last year in November, and the plan is already under construction in March this year. This is an indication of how fast and expeditious we can respond to major high-impact investment. Not that I drink Coca-Cola myself, but I think it is important that we are associated with such a brand household name, and the fact that such a major corporation can get such positive intervention and assistance from the Malaysian government. And that is the message I would like to deliver to the entire US business community. In fact, this relationship extends beyond trade and investment. Malaysia is part of the US multinational company's production network in East Asia, and brings with it technology and management capability as well as marketing network and venture capital. Certainly, there is a scope for expanding this investment and economic relationship that can bring mutual benefits and deliver growth to our nations. It is unfortunate that Malaysia and the United States were unable to conclude a free trade agreement before the expirations of fast-track authority. Even without this formal arrangement, I can see opportunities in which bilateral investment and trade can flourish. Malaysia can be the hub for investment in green and energy-efficient technologies through the use of our natural resources. Services industries where Malaysia is emerging as a strong leader, such as Islamic finance, tourism, halal products and services can be an avenue for enhancing bilateral trade. Malaysia will also take a serious look at strengthening its investment and economic ties with the United States through the Trans-Pacific Partnership with terms and modalities that are mutually beneficial. The Malaysian economy is now at a critical crossroad. Our economy is caught in the so-called middle income trap, where growth in the past decade has been moderate. Policies that have been effective in the past may no longer be so in the future. That is a strong raison d'etre and basis for us to move forward with the new economic model, or NEM, to lift Malaysia out of this trap and to achieve our goal as an advanced and high-income economy. This model adopts a holistic approach to ensure that all communities will benefit from the wealth of the country and, at the same time, taking care that the pursuit of higher growth should be done without compromising future generations. Under the NEM, Malaysia intends to grow at 6.5 percent per annum so that we can double our GDP per capita from the present US$7,000 to US$15,000 by 2020. The NEM encapsulates the new mindsets and methods that will need to succeed. Growth must be private sector-led and productivity-driven. In order for this to happen, we must focus on improving both our domestic and international competitiveness, private sector investment appetite must be restored by improving the investment climate, reducing unnecessary red tapes. Industries that are technologically capable must be nurtured and workers must be highly skilled. As this growth will be highly dependent on the quality of our workforce, our education system must be re-evaluated so that we will produce the right kind human talents and, at the same time, retain them in the country. In the main, the new economic model strives for greater productivity. Efficiency and we also aim for better quality of life and improvements in the standard of living and all around inclusiveness. US corporations and investors will benefit from a more conducive investment climate, increased liberalization efforts, a higher quality in the Malaysian workforce as well as efforts to facilitate the growth of promoted industries. Industries such as electrical and electronics and oil and gas have significant US participation and interest and under the NEM, these industries will be given a further boost. The NEM will place further emphasis on the creation of a conducive investment climate. For example, the Malaysian Industrial Development Authority will be empowered to lead our efforts to attract more investment and this transformation is reflected not only in its new identity and name. MAIDA is now known as Malaysian Investment Development Authority but MAIDA will be empowered to make decisions in real time and this is a clear signal that we intend to be very responsive to the needs of the international business community. To be sure, there are many of those whose interests still lie in the old way of doing things. That may well, may suit them but the grave consequences are economic stagnation and social regression. I've always likened this to a marathon race. The fact that you're doing well halfway through the race doesn't mean that you'll be leading when you reach the tape, unless you uplift yourself, unless you are driven with new dynamism and energy, then you might find yourself overtaken by others. Without rapid and sustained economic growth, we are unable to uplift those who require assistance the most. That in a nutshell is the inescapable fact of the matter. The initiatives embodied in the NEM will enable us to address the imperatives of equity and nation building. The NEM is one of the four components of my transformation initiative. The first component is the all overarching philosophy, if you like, which is embodied in one Malaysia, people first, performance now concept. To unite all Malaysians, to give all Malaysians a sense of togetherness, to face the challenges ahead. The second is the new or the Government Transformation Program, GTP, aimed at strengthening public services area in national key result areas under GTP, cumbersome regulations, processes and procedures will be simplified to improve the effectiveness and reduce opportunities for rent seeking behaviour. As a matter of fact, the GTP program and using NKRA and KPIs as part and parcel of the Government methodology to gauge performance and outcome on such a large scale is unprecedented worldwide. This is a huge challenge for us, but we believe that we can deliver and we can fulfill the hopes and expectations of all Malaysians. The third critical component is the new economic model where the measures will form the Economic Transformation Program. So essentially you have two key pillars, the GTP and the ETP, and both are meant to transform Malaysia by 2020 into a developed and competitive economy whose people will enjoy high quality of life and high level of income from growth that is both inclusive and sustainable. The final component of course is the 10th Malaysia Plan and eventually the 11th Malaysia Plan which will operationalise both the Government and Economic Transformation Program to be unveiled this year. Ladies and gentlemen, I hope that I have managed to give a broad overview of Malaysia's security, economic outlook and the main agenda for the Government. I hope you will now examine how greater US-Malaysia collaboration and understanding can be achieved in these areas. The best understanding however would be gained if you were to come to Malaysia and find out first hand what is actually going on in Malaysia. I'm not making a tourism pitch. I'm confident that you will be pleasantly surprised at how different reality and perceptions are. I thank you.