India works for bilateral ties with Malaysia

Kolkata: India and Malaysia are working on a Comprehensive Economic Cooperation Agreement (CECA). Two rounds of negotiations have been completed and the third round would be held in Kuala Lumpur.

Giving this information here, Mr Dato’ Tan Seng Sung, Malaysia’s High Commissioner in India, said, “the joint feasibility study concludes that there is a huge potential for trade in goods; services such as medical, healthcare, computers, and investment in construction, telecommunications, civil aviation and tourism, among others.” He was addressing an interactive session organised by the Indian Chamber of Commerce.

Bilateral trade between India and Malaysia amounted to $4.14 billion for January-June 2008, up from $2.94 billion during the same period last year.

Malaysia’s exports to India were $3.69 billion and imports from India stood at $1.67 billion during January-June this year.

Crude petroleum, electrical and electronic products, chemicals, palm oil and petroleum were the major products of export from Malaysia while live animal and meat, refined petroleum products and machineries were the major imports from India, he said.

The Malaysian companies have invested close to $250 million, the major sectors of investments being construction, power generation, telecommunications and logistics and resort sectors.

Mr Seng Sung identified biotechnology, pharmaceuticals, information technology and financial services as other possible areas of cooperation between the two nations.

He indicated that the negotiation on trade in services and investments between India and the Association of South-East Asian Nations (Asean) is expected to commence in December.

Asean recently concluded FTA negotiations on trade in goods with India paving the way for rationalisation of customs duties on various goods, he said.

“The Customs authorities could take three-to-six months to prepare the tariff cuts on various goods and agreement will take effect once the reduced tariffs come into force,” he added.