MALAYSIA, BRUNEI AGREE THERE IS GOOD POTENTIAL FOR FUTURE COOPERATION

PUTRAJAYA, Sept 22 (Bernama) -- Malaysia and Brunei Tuesday agreed that there is
good potential for future cooperation between both countries especially beyond
Block CA1 and Block CA2 of the Commercial Arrangement Area (CAA) as well as
concerning the East Malaysia states of Sabah and Sarawak.

This agreement was achieved at the 14th Annual Leaders's Consultation between
Prime Minister Najib Razak and the Sultan of Brunei Sultan Hassanal Bolkiah,
which was held at Seri Perdana here Tuesday night.

According to a joint statement issued here, the future cooperation also involved
a possible joint venture with a third country in the exploration and
exploitation of oil and gas, and the development of downstream industries.

Earlier, both leaders had witnessed the signing of the Deed of Amendment of the
Brunei deep water block Production Sharing Agreement (PSA) for Block CA1 of the
Commercial Arrangement Area (CAA).

The agreement was signed between PetroleumBrunei and national oil
corporation, Petronas.

Najib and Sultan Hassanal prior to that had a four-eyed meeting for about half
an hour.

Both leaders noted that the signing represented a significant step forward in
the development of cooperation between the petroleum authorities of both
countries.

"They also hoped that the PSA for Block CA2 of the CAA would be finalised soon,"
said the joint statement.

The two leaders took note of the progress in the discussions on the
implementation of other agreed elements of the Exchange of Letters between the two
countries.

The annual consultation also saw both leaders taking note of the progress of the
discussions of the Joint Malaysia-Brunei Darussalam Land Boundary Technical
Committee and urged the committee to finalise and conclude the Terms of
Reference and the Memorandum of Understanding on the Joint Demarcation and
Survey of the Land Boundary by the end of 2010 to enable joint demarcation and
survey activities to begin by the first half of 2011.

"Both leaders highlighted the need for both countries to enhance economic
cooperation and further facilitate and create a more conducive and sound
environment in the various sectors of mutual interests with particular emphasis
being given to activities in Sabah and Sarawak," said the joint statement.

Najib and the Sultan also expressed their desire to further enhance
bilateral trade and investment and hoped the momentum in the increasing level of
trade and investment between the two countries would continue to accelerate.

"His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam expressed
satisfaction that several Malaysian companies have participated in projects with
the Brunei Economic Development Board (BEDB) and welcomed more Malaysian
investment in Brunei," it said.

The Prime Minister also expressed satisfaction on the investments made by Brunei
in Malaysia and welcomed further investments in Malaysia's economic corridors
namely the Sarawak Renewable Energy Corridor (SCORE), the Sabah Development
Corridor (SDC), the Iskandar Development Region (IDR) and the East Coast
Economic Region (ECER).

Both leaders also agreed to direct the relevant agencies of the two
countries to intensify their discussionS on ways and measures to enhance cross
border trade and the flow of good and services between Brunei and Malaysia,
including transit and other charges.

"Both leaders recalled the 10th Annual Consultation held in Kemaman, Terengganu
In August 2006 on the construction of bridges, especially in designated areas
linking Brunei and Sarawak, and noted that these initiatives would be undertaken
by the private sector.

"They hoped that the construction of the bridge over Sungai Pandaruan could
commence as soon as possible," said the joint statement.

The two leaders also expressed satisfaction that the ferry service between
Serasa, Brunei and Menumbok, Sabah was operating very smoothly and had
facilitated travel by locals and tourists from both countries since its launch
on Dec 30, 2009.

Both leaders also noted with satisfaction that the Frequent Travellers' Facility
(FTF) had been agreed to and looked forward to its launching which would
facilitate people-to-people interaction and travel between Malaysia and Brunei.

The two leaders also welcomed the overall excellent state of bilateral
relations, and noted with pleasure the progress in bilateral cooperation in a
multitude of areas, including trade and investment, finance and banking, energy,
defence, education, agro-business and industries, tourism, air services, health,
information and communications technology (ICT), and information and
broadcasting.

As close neighbours, both leaders acknowledged the importance of enhancing
consultations and coordination in efforts towards realising an ASEAN Community
in 2015, and in promoting peace, stability and prosperity in the region.

"They reaffirmed the central role that ASEAN plays in these endeavours. Both
leaders looked forward to the convening of the 17th ASEAN Summit and related
Summits in Hanoi, Vietnam from Oct 28 to 30 and expressed their best wishes and
support to the government of Vietnam in its preparations for the events," added
the joint statement.

Both leaders also looked forward to the forthcoming 2nd ASEAN-US Leaders Meeting
on Sept 24 in New York and expressed confidence that the discussions would
further enhance ASEAN-US relations particularly in promoting increased dialogue
and cooperation.

As they shared a deep concern for the tragic humanitarian situation in Pakistan
as a result of the floods which affected more than 20 million people in that
country, both leaders agreed to step up regional and international efforts
towards disaster prevention and disaster relief.

They also expressed their satisfaction on the outcome of the annual
consultation and agreed to hold the next consultation, in Bandar Seri Begawan,
Brunei next year.
-- BERNAMA