SERVICES SECTOR TO BENEFIT FROM MALAYSIA-INDIA BILATERAL AGREEMENT

KUALA LUMPUR, May 3 (Bernama) -- The services sector of both Malaysia and India is poised for further growth, pending the implementation of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) on July 1.

"The inclusion of services in this agreement is a breakthrough development and has now paved the way for greater integration of the services sector of the two countries," said International Trade and Industry Minister, Mustapa Mohamed Tuesday.

Aimed at allowing easier movement of goods, services and investments, the agreement will enable skilled professionals of both nationalities to travel and provide contractual work with lesser restrictions.

"You can expect to see in the years ahead a greater movement of expertise between the two countries in areas such as education, training, telecommunications, transport, construction and environmental services," he said at the Malaysia-India CECA Unleashing Business Opportunities conference here Tuesday.

Mustapa also said human capital movement was consistent with Malaysia's desire to grow its services industry and to make it a larger component of the country's Gross National Product.

He added some forecast suggested that bilateral trade between both
countries may double by 2015 after the CECA is fully implemented.

"Both governments have worked hard to create this enabling environment for business, but it is the private sector that will have to capitalise on the market access and investment opportunities that CECA creates," he said.

Two-way trade between Malaysia and India increased 27 per cent
to US$9 billion in 2010.

Organised by the Consortium of Indian Industries in Malaysia (CIIM), the conference aimed to increase the awareness of the business community to changes taking place with the implementation of MICECA.

"With the information in their hands, businesses can leverage on this and have the first mover advantage to benefit from the new bilateral agreement," CIIM Chairman Umang Sharma said.