M'SIA AND NORWAY TO START NEGOTIATING FTA

KUALA LUMPUR, March 10 (Bernama) -- Malaysia and Norway are well on their
way to clinching a Free Trade Agreement (FTA) as all obstacles have been cleared
to start negotiations, Norwegian Trade and Industry Minister, Trond Giske said
Wednesday.

He said a joint declaration of economic cooperation would be signed within a
month between Malaysia and the European Free Trade Association (EFTA), which
consists of Norway, Switzerland, Liechtenstein and Iceland.

The negotiation would be coordinated by Switzerland, he added.

"We will make it a common treaty. Then we can start negotiation and
hopefully quite soon, we can have an FTA," he told reporters after visiting the
headquarters of DiGi.Com Bhd here.

Giske is a member of the delegation accompanying Crown Prince Haakon Magnus
and Crown Princess Mette-Marit on a three-day official visit to Malaysia.

Giske said it was evident from Norway's FTA with other countries that
bilateral trade could be doubled or trippled.

"We export to Malaysia yearly about RM600 million (US$1=RM3.4) and Malaysia
sells to Norway around RM1.3 billion.

"But when you look at the size of the economies and the size of the
population in Malaysia, this is too small. We should increase this strongly," he
said.

Giske said Norway had much to offer to Malaysia with its companies
experienced in various industries including oil and gas, fish farming and
aquaculture, construction, telecommunication, defence, renewable energy,
shipping, and maritime.

"We have a lot of areas where we have common interest and I think Malaysian
companies will also find a strong market in Norway where we have business
opportunities for them," he added.

From 1998 to 2008, total trade between Malaysia and Norway grew annually at
an average rate of 10.3 per cent with Malaysia's trade with Norway expanding
more than threefold during this period.

Norwegian firms have invested in 26 projects in Malaysia with a total value
of US$186.9 million as of last year.

--BERNAMA