M'SIA, EGYPT TO SET UP JOINT TRADE PANEL

KUALA LUMPUR, Jan 5 (Bernama) -- Malaysia and Eygpt will set up a joint
trade and investment committee to further strengthen bilateral trade and
investment ties, Minister of International Trade and Industry Minister,
Muhyiddin Yassin, said Monday.

"It will be an effective mechanism to facilitate and promote more trade,
investment and economic collaborations," he told reporters after meeting his
Egyptian counterpart, Rachid Mohamed Rachid, here Monday.

Muhyiddin said the memorandum of understanding has been prepared and "I hope
we can agree on the contents in the next few weeks or months."

He said it was agreed that the committee be formed as soon as possible,
adding that the first meeting would either be held in Cairo or here.

"There is a lot of scope for us to increase the volume of trade, which
currently is still small," he said.

He said Ministry of International Trade and Industry would carry out more
promotional activities to boost trade and investment cooperation and urged
Egypt-Malaysia Business Council to play its role actively.

Muhyiddin said bilateral trade for January-October 2008 grew to RM2.176
billion (US$1=RM3.45) from RM1.593 billion in 2007.

He said as at September 2008, Malaysians invested RM636 million in Egypt,
mostly in the manufacturing and mining industries.

As at November 2008, Egyptians invested RM22.8 million in six projects in
the manufacturing of plywood, wooden furniture and production of souvenirs, he
said.

He said Egypt was Malaysia second largest trading partner among African
countries.

Muhyiddin said trade and investment relationships between Malaysia and Egypt
had grown over the past few years, from RM831.6 million in 2001 to RM1.933
billion in 2007.

Meanwhile, Rachid said the trade figures at the moment did not really
reflect the potential of such relationship.

"There is an opportunity for us to really push bilateral trade as well as
investment to a new level," he said.

He urged Malaysian companies to participate in infrastructure projects in
Egypt by teaming up with the Egyptian counterparts.

"Egypt is fast opening up its infrastructure projects through public-private
partnership initiatives in road, airport, port, water, sewerage and electricity
sectors," he said.

Other issues discussed during the meeting were the impact of the global
financial crisis on both countries, matters related to the World Trade
Organisation, regional cooperation under the Organisation of the Islamic
Conference and Group of Developing Eight and bilateral cooperation in capacity
building between the two countries.

-- BERNAMA