INDIAN COMPANIES SHOULD CHOOSE MALAYSIA FOR REGIONAL SET-UP

KUALA LUMPUR, Sept 23 (Bernama) -- More Indian companies should choose
Malaysia to locate their regional establishments in view of the impending
implementation of the Asean-India Trade in Goods Agreement, said International
Trade and Industry Minister Muhyiddin Yassin.

He said the country provided the best gateway to the combined Asean market
of more than 560 million consumers and combined gross domestic product (GDP) of
more than US$1,000 billion.

"I am optimistic that the implementation of the agreement early next year,
will enhance the trade between Asean and India in general and Malaysia and India
specifically," he said in his opening keynote address before the launch of the
Malaysia-India CEO Forum 2008 here Monday.

Malaysia is already looking forward to a stronger business tie with the
eventual implementation of the Agreement on Trade in Goods under the Asean-India
free trade agreement (FTA), which expected to be signed in December.

Muhyiddin said the Asean-India engagement would enter another phase
with the negotiations on services and investment which is expected to be
completed by the end of 2009.

These agreements will liberalise and promote the two sectors
and further boost ties between Asean and India, he said.

Early this year, Malaysia and India took a step towards further enhancing
trade and economic ties by launching negotiations for a Malaysia-India
Comprehensive Economic Cooperation Agreement or Malaysia-India CECA.

From January to June this year, bilateral trade between Malaysia and India
totalled US$5.33 billion and this is expected to touch US$10 billion by year-end
compared with US$7.88 billion last year.

"This is still relatively low," said Muhyiddin.

On the composition of trade, the bilateral exchange is skewed to a few big
ticket items such as crude petroleum, computer related electrical and electronic
products, chemicals and chemical products and palm oil.

Apart from the trade in goods, Malaysia and India should also work closely
in promoting collaboration in the services sectors, especially in the new
areas, the minister said.

Malaysian companies have participated actively in the infrastructure
development of India in the construction of roads, ports and airports.

"Currently, India is the main market for the Malaysian construction
industry. Between 1998 and August 2008, a total of 20 Malaysian companies have
completed 58 construction projects worth US$2.6 billion in India," Muhyiddin
said.

Likewise, Indian companies have made important inroads into the information
communication technology sector in Malaysia. Many companies located in the
Multimedia Super Corridor are heavily dependant on skilled human capital from
India, he said.