CECA WILL ENHANCE INDIA-MALAYSIA TRADE RELATIONS, SAYS MUSTAPA

By P. Vijian

NEW DELHI, March 6 (Bernama) -- Asia's third largest economy India and
Malaysia are working closely to tie up the Comprehensive Economic Cooperation
Agreement (CECA) by later this year, which is likely to add fillip to the
existing two-way trade relations.

Visiting International Trade and Industry Minister Mustapa Mohamed met his
counterpart Anand Sharma in New Delhi to review the progress of the trade pact
yesterday during his one-day visit to India.

"India can provide lot of stimulus to Malaysia's growth. We hope to achieve
more things in 2010 and possibly conclude CECA by end of August, and the
agreement being signed in Malaysia when Indian Prime Minister Manmohan Singh
visits in October," Mustapa told Malaysian corporate leaders at a dinner Friday.

"Minister Sharma and I have now agreed a process which should ensure we meet
this hard deadline. The breadth of the agreement, covering services and
investments as well, reflects the level of our ambition which I have
characterised as 'Asean+'," he said.

Ranking India and China as important economic powerhouses in the region, the
minister said both nations "could help pull along Malaysia's growth" as huge
trade and investment opportunities exist between the three economies.

On India-Malaysia trade relations, Mustapa said the two-way trade and
investments flow were on a healthy trajectory, but he wanted to see more Indian
companies setting up bases in Malaysia.

"We are encouraged by the level of interest within the corporate sectors in
both India and Malaysia, and look forward to greater inward investment flows
from India," he said.

"I would like to see existing Indian companies expanding their operations
and also new companies coming to Malaysia, especially the SMEs (small and medium
scale entrepreneurs)," he added.

Mustapa had also invited Sharma to visit Kuala Lumpur in June this year for
a mid-term review of the CECA negotiations and to lead a business delegation to
Malaysia.

Last year, India was Malaysia's 12th largest trading partner.
-- BERNAMA