INDIA-MALAYSIA TRADE VOLUME EXPECTED TO DOUBLE IN FIVE YEARS WITH LANDMARK FTA

KOTA KINABALU (Sabah, Malaysia), Feb 10 (Bernama) -- The trade volume
between India and Malaysia is expected to double in five years with the signing
next week of a three-in-one Free Trade Agreement (FTA) between them.

Indian High Commissioner to Malaysia Vijay Gokhale when disclosing this
during his first visit to the east Malaysian state of Sabah Thursday, said this
was inevitable because tariffs would then be lower.

During his visit to the state, Vijayhe called on Chief Minister Musa Aman
and met with Indian business leaders and community representatives.

Trade volume between the two countries was worth around RM32 billion
(US$10.32 million) last year, he said.

The Malaysia-India FTA would be based on goods, services and investment, and
in this regard, Sabah could study the provisions in the agreement and see how it
could benefit from it.

"India is looking to invest in East Malaysia in agriculture, agro-based,
tourism and education," he said, citing palm oil which India is importing in
increasing quantities to match its growing population.

He said tourism was another area that the state, with its beaches, wildlife,
forest and culture, could capitalise on, "especially now that travel has become
cheaper and there are now more flights to India".

Some 700,000 Indian tourists visited Peninsular Malaysia last year, added
Vijay.

On another note, Vijay said he might consider the setting up of a small
office in Sabah to cater to the interests of the Indian community.

He had dismissed a suggestion by Sabah Indian Chamber of Commerce and
Industry president Victor Suppiah to open a consulate or appoint an attaché
here, as he noted that the state did not have enough presence to justify a
consulate as yet.

Nevertheless, he urged the Indian business community in Sabah to work with
the state government and make use of the FTA platform.

On bilateral ties, he said that overall, it was balanced and getting
stronger including in the defence field.

He added that as a goodwill gesture, India's naval ships would be coming to
Sabah in May for the first time. The ships have been making port of calls in the
peninsula regularly.
-- BERNAMA