Malaysia outlines areas for expanding co-operation
New Delhi, June 7 (UNI) Malaysia today offered to expand the areas of co-operation with India in the sectors of infrastructure and services, inclduing tourism, financial services, construction, Business Process Outsouricing and ICT.
The suggestion for widening and deepening co-operation with India was made by the visiting Deputy Prime Minister of Malaysia Dato Haji Abd Razak in his address to the Indian Industry. The Minister is acompanied by a high-powered business delegation, representing interests such as construction, infrastructure, plantation, advertising and media, car industry, telecommunications, banking and insurance, property development, power and transmission, education, and aerospace.
''In both Malaysia and India, the service sector is targetted for growth and development. There is an array of services in which both countries can collaborate and trade. India and Malaysia have strong complementaries in services, which can be further explored through collaboration in all sectors and modes,'' Mr Razak said.
The other areas of significant interest identified by Mr Razak included tourism, transport, after sales services, education and training, health and diagnostic services and consultancy services.
The event was jointly organsied by FICCI, CII, and Malaysian External Trade Development Corporation (MATRADE).
Mr Razak said India has strong ties with with the South African Customs Union countries as well as partners in South Asia; while Malaysia has ties with ASEAN and West Asia.
He asked the business communities of both countries to explore these networks and supply chain relationships to expand trade and investment opportunities beyond the individual boundaries.
Saying that the level of trade between the two countries does not reflect the strength and diversity of both the economies. Mr Razak said trade was confined to a limited range of products. In this connection, he said, Malaysia's major exports to India in 2005 were crude petroleum and petroleum-based products, which together account for 45 per cent of total exports. Other main export items were electrical and electronic products, chemicals and chemical products and palm oil.
Major imports from India were chemicals and chemical products, representing 18 per cent of total imports, metal products, machinery, appliances and parts, meat and iron and steel.
On the investment front, Mr Razak said Malaysia is a host to a number of major Indian companies, including TCL Industries, Ranabaxy, PAN Century, SM Chemicals and Godrej.
These companies are concentrated in chemicals and chemical products, petroleum products, food, beverages, and tobacco and non-metallic mineral products.
Malaysia's investment in India from 1998 to 2005 totalled 141 million dollars. India is the 20th largest destination for Malaysia while Malaysia is India's 19th largest source of FDI. The major areas of Malaysia's investment in India are in the construction sector, software production, electrical and elecrtonics as well as rubber products.
''The expanding Indian economy offers opportunties for the Malaysian and Indian companies to explore collbaroative initiatives in many areas. Currently Malaysia's involvement is manily in the construction sector, particularly in areas such as property development, construction of infrastructure such as airports, seaports, power plants, water and sewage treatment, telecommunications, logistics including tourism and education.
''My government is very keen to take up these opportunities and to encourage a wide range of Malaysian interest and sectors to join us in doing that,'' Mr Razak said.
UNI GS RA PM1729