M'SIA WANTS TO FURTHER BOOST TRADE WITH IRAN

KUALA LUMPUR, Dec 31 (Bernama) -- Although Malaysia and Iran are satisfied
with the excellent bilateral relations, more should be done to boost business
linkage between the two nations, Foreign Minister Rais Yatim said Wednesday.

"We feel that we could do more with Iran, especially in areas of trade
and investment, education, finance and banking, oil and gas, science and
technology and tourism," he told Bernama in an interview.

Iran is Malaysia's third largest trading partner in the Middle East with
total trade of RM3.59 billion in 2007. Iran is also a major importer of palm oil
from Malaysia with imports totalling RM780 million last year.

Todate, Malaysian companies like Petronas, Proton, SKS Ventures Sdn Bhd and
Amona Group of Companies had undertaken projects in infrastructure development,
housing, road building, oil, gas and automobile industry in Iran.

Rais said Malaysia wanted greater cooperation with Iran in the field of
finance and banking as a mechanism to bolster trade and economic ties between
both countries.

"We also propose that banking institutions of both countries look into
collaboration in Islamic banking. We have also approved Bank Mellat of
Iran to obtain an offshore banking license and to establish a branch in Labuan
in East Malaysia state of Sabah.

"We hope the opening of a Bank Mellat branch in Labuan will further enhance
trade and economic ties between both countries," he said.

Rais stressed that there was a need to ensure that the bank engaged in
only the intended purpose - economic and trade.

Speaking on Iran's application to be ASEAN's sectoral partner, he said
its application could not be considered until end 2008 because of the moratorium
on new sectoral partner.

"Iran should present specific areas of cooperation that they were interested
in having cooperation with ASEAN and to take steps to raise the matter with the
other members of ASEAN and the Secretary General of ASEAN," he said.
-- BERNAMA