M'SIA TO INK FRAMEWORK AGREEMENT WITH GCC COUNTRIES SOON

KUALA LUMPUR, Jan 18 (Bernama) -- Malaysia will soon sign a framework agreement
with the Gulf Cooperation Council (GCC) countries to strengthen cooperation as a
prelude to the proposed Free Trade Agreement (FTA).

International Trade and Industry Minister Mustapa Mohamed said the framework has
been completed and both parties are waiting to sign the agreement.

"We've agreed mutually. This agreement is a pre-cursor to the FTA. It will cover
cooperation on a broad range of sectors. After signing, we'll go for the
details," he told a question and answer session after a presentation on
investments in the manufacturing and services sectors in 2010 at the Malaysian
Investment Development Authority (MIDA) annual conference Tuesday.

The GCC countries are Bahrain, Saudi Arabia, Kuwait, United Arab Emirates, Oman
and Qatar.

The agreement was one of the aspects of Malaysia's liberalisation moves, he
replied to a question from the floor on what are the other sectors the
government intended to liberalise.

The government has eased Foreign Investment Committee guidelines,
liberalised 27 services sub-sectors and corporatised MIDA as part of the
liberalisation exercise.

"GCC countries are a big market with strong purchasing power, hence
opportunities for cooperation are vast," said Mustapa, adding that many
Malaysians have made their presence in these countries.

Meanwhile, speaking on investments, MIDA director-general Jalilah Baba said the
government investment promotion agency aims to achieve between RM50 billion and
RM55 billion investment in the manufacturing sector this year.

Malaysia attracted significantly higher levels of investments in the
manufacturing sector last year, up 44.8 per cent with 910 projects involving
RM47.2 billion approved investments.

She said electrical and electronic industry would continue to be the sector's
key driver.

"MIDA is optimistic of achieving the target as we've surpassed last year's RM40
billion target," she said.

Jalilah also said Malaysia was in the right position to attract green technology
companies especially solar companies.

She said MIDA was talking to few solar companies from the United States, Germany
and China.

"About seven companies -- three from the US and two each from Germany and China
-- are exploring investment prospects," she said on the sidelines of MIDA's
annual conference.

Jalilah said total investments from the seven companies would be more than RM5
billion, with over RM800 million investment from each company.

Last year, US-based Twin Creeks Technologies Incorporated invested RM1 billion
and Concrete Gold RM100 million in Malaysia's solar sector.
(US$1=RM3.05)
-- BERNAMA



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