GRAB BUSINESS OPPORTUNITES IN MALAYSIA WITH FTA, AUSTRALIAN INVESTORS TOLD

By Neville D'Cruz

MELBOURNE, August 27 (Bernama) -- Australian companies and investors have been
advised to get ready to grab business opportunities in Malaysia when the free
trade agreement (FTA) between the two countries is expected to be signed later
this year.

At a dinner here last night organised by the Australia Malaysia Business Council
(AMBC), Victoria chapter, to celebrate the Merdeka anniversary, Malaysia's
Deputy High Commissioner Ahmad Fadil Shamsuddin said the next round for
bilateral FTA negotiations would take place in Canberra in October and hopefully
an agreement would be reached soon after.

"As such, AMBC should seize the opportunities to lay down the groundwork for
further growth and development, in particular to take advantage of trade
liberalisation initiatives between our two countries in maximising business
potential," Ahmad Fadil said.

He told the 120 guests the financial crisis clearly demonstrated the
interconnectedness of the global economy as economies, big and small, developed
and developing, struggled to limit the contagion.

"As a whole, the world economy contracted by 0.6 per cent in 2009 compared to a
growth of three per cent a year earlier," he said.

"Malaysia and major Asean countries were similarly affected. Overall growth
dropped from 4.4 per cent in 2008 to just 1.3 per cent in 2009."

Ahmad Fadil said Malaysia was similarly affected by the global slowdown but
strong signs of recovery emerged by the fourth quarter of 2009.

"The Malaysian government made appropriate and timely interventions to cushion
the impact of the crisis," he said.

"The implementation of two fiscal stimulus packages amounting to RM67 billion,
about nine per cent of GDP (gross domestic product), bolstered consumer and
business confidence."

On investments, Ahmad Fadil said Malaysia had a formidable task ahead with the
recent announcement of the 10th Malaysia Plan.

"The government has set an overall private investment target of RM115 billion a
year," he said.

"The Ministry of International Trade and Industry and its agencies,
particularly the newly corporatised Malaysia Investment Development Authority
(MIDA), are working together strategically to secure more investments."

Ahmad Fadil said MIDA had been empowered to assume a more effective role to
attract both foreign and local investments.

"Prospective investors can expect reduced lead-time for approval of projects as
MIDA is now invested with more decision-making authority," he said.
(US$1=RM3.14)
-- BERNAMA



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