Malaysia optimistic for FTA with India: Dy PM

Mumbai, June 9: Malaysia's Deputy Prime Minister Dato' Mohd Najib Tun Abdul Razak today said their Government will continue to support strengthening of business relations and cooperation between India and Malaysia in the private sector.

Inaugurating a day-long Malaysia-India CEO forum here, Mr Razak said during a visit in 2004, both the countries had agreed to initiate discussions for comprehensive economic cooperation agreement (CECA).

The joint study group report for the CECA is expected to be finalised shortly, he said and added that his country remains optimistic that a free trade agreement can potentially lead to a new era of economic partnership between both the countries.

The manufacturing-based foreign direct investiment (FDI) from India amounted to USD 148 million, having doubled last year from USD 77 million in 2004, he said.

FDI has become a relatively new and increasingly important dimension in economic relations between India and Malaysia, he added.

He said there are now over 50 Indian joint ventures in Malaysia in the fields of palm oil refining, power, railway, civil construction and information technology. The Indian companies have also been active in Malaysia's multimedia super corridor (MSA).

As of now, 52 Indian companies with status have been approved in areas such as ICT security, content development, e-commerce services, wireless technologies, business and engineering software applictions, biotechnology and life sciences.

In these areas, India has much to offer in terms of resources and expertise to Malaysia, Mr Razzak added.

The traffic has not been a one-way street either. India is strong in software like the human capital, but relatively weaker in hardware like infrascture. In this area, Malaysia has vast experience can be of great benefit to India, he said.

The Malaysian companies have deep experience in building and operating the world class Kuala Lumpur International Airport and are now building Hyderabad Airport together with Indian partners and are also in the running for the New Delhi Airport privatisation project, he added.

Mr Razak urged the Malaysian business community to build and expand the footprint in India's rapidly growing economy. There are vast opportunities here for entrepreneurs with vision and tenacity. India is a very large and diverse country, so Malaysian businessman should have a clear strategy to compete. Malaysian of Indian origins are also presented at the highest levels of Government services. The country's senior cabinet minister from the Indian community, he said.

During the few years India has been mentioned with China as the emerging twin engines of the global economy. India's real GDP has grown at eight per cent per year for last three years which around Six per cent over past 25-years.

UNI