AVOIDANCE OF DOUBLE TAXATION AGREEMENT WILL BOOST M'SIA-LAOS TRADE TIES, SAYS PM NAJIB

From Ahmad Kamil Tahir

VIENTIANE, June 3 (Bernama) -- Prime Minister Najib Tun Razak
believes Malaysia-Laos bilateral trade ties will scale greater heights in the
years ahead with the signing of the double taxation avoidance agreement between
the two members of the Asean regional grouping.

He said the agreement would pave the way for the strengthening of existing
bilateral relations between the two friendly nations.

“I believe more Malaysian companies will come forward to invest in Laos.
Today
itself two companies signed an agreement with their Laotian counterparts here to
develop a RM2.2 billion hydro-electric project.

"Another agreement is to develop an industrial site costing US$26 million at
the Special Economic Zone,” he told Malaysian journalists covering his two-day
visit to Laos.

Najib said currently Malaysia was the ninth largest investor in Laos, with
total investments amounting to US$151.3 million between 2000 and last year.

"This amount can be increased in future," he said.

The Prime Minister said prospects of economic collaborations between
Malaysia
and Laos were good, with Laos' economy slated to grow at 7 to 7.5 per cent in a
year or two.

“I've given an assurance that Malaysia's assistance to Laos under the
Malaysian Technical Cooperation Programme will be continued as Vientiane
benefited from the assistance extended to develop human resource capabilities
among its officials," he said.

Najib also said he had conveyed to his Laotian counterpart Bouasone
Bouphavanh
on the scholarship offer by the Cyberjaya-based Limkokwing University of
Creative Technoloy to 20 Laotian students.

He said Laos had also agreed to support Malaysia's bid for one of the
non-permanent members seat in the United Nations Security Council in 2015.

On Malaysia-Laos direct air links, Najib said Laos hoped AirAsia, which
flies
thrice a week to Vientiane, would consider flying to another destination in the
south -- Pak Se -- which has been declared as the World Heritage Town
by the United Nations.

Earlier, speaking at a business luncheon, Najib praised Loatian government’s
reform initiatives to turn the business environment more conducive for the
private sector.

He said Laos was also in the final stage of accession to the World Trade
Organisation (WTO).

"Once this process is completed, it will provide extra confidence to the
business community to expand their business dealings in Laos," he said.

Najib said Laos was also making substantial progress in trade liberalisation
efforts within the Asean context in meeting the 2015 deadline.

He said the move would provide the opportunity for both countries to bolster

bilateral trade.

"(Currently) two-way trade is narrow and confined to only a few products.
Total trade between Malaysia and Laos last year was only US$6.8 million.

"Main Malaysian imports from Laos were metal and timber products while
Malaysian exports comprised mainly fabrics and yarn.

“Certainly there is scope for expanding bilateral trade given the lower
tariffs under Asean Free Trade Agreement (AFTA).

"Let's find ways to work together not only to enhance our bilateral trade
but also form strategic partnerships to take advantage of the opportunities
arising from the greater regional economic integration,” he added.

-- BERNAMA




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