MALAYSIA SEEKS FTA TALKS WITH GULF STATES

From Muin Abdul Majid

MANAMA (Bahrain), Jan 20 (Bernama) -- Abdullah Ahmad Badawi has
expressed hope that negotiations on the proposed establishment of a free trade
agreement (FTA) between Malaysia and the six-nation Gulf Cooperation Council
(GCC) can start as soon as possible and a mutually beneficial pact concluded.

Making a case for the FTA, the Malaysian prime minister said the GCC was
attractive for Malaysia as it offered a lucrative market and wide range of
opportunities for Malaysian exporters, investors and service providers.

Addressing a business forum organised here Monday in conjunction with his
two-day visit to Bahrain, he said: "I'm sure the business communities within
the Gulf region, particularly from Bahrain, will also find the prospect of an
FTA very enticing.

"This is because Malaysia can be used as a platform to penetrate the Asean
market and the other lucrative markets of our FTA partners such as Japan, China
and Korea."

According to Abdullah, Malaysia had made the FTA proposal through the GCC
secretariat and it had received strong support from the business communities in
Malaysia and the region.

The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United
Arab Emirates while Asean groups Brunei, Cambodia, Myanmar, Thailand, Malaysia,
Singapore, Indonesia, Laos, the Philippines and Vietnam.

Speaking at the business forum entitled "Malaysia-Bahrain Business
Opportunities", the Malaysian leader said he strongly believed that an FTA
would have a significant impact in improving the status of current bilateral
trade and investment between Malaysia and the Gulf region which was still
small.

Abdullah also made a reference to the prospects of increasing trade and
investment among the Organisation of the Islamic Conference (OIC) fraternity.

He said a mechanism to expand trade among OIC members, called the Trade
Preferential System Among Member States of the OIC (TPS-OIC), had been
concluded.

However, Abdullah said, the implementation of the scheme had yet to take
place because a large number of members had not ratified the implementing
protocol for tariff reduction.

"Malaysia believes that it is in the collective interest of all OIC members
to ensure the early implementation of the TPS-OIC," he said.

The prime minister noted that the convening of the business forum was
timely in view of the current global economic slowdown, with both countries
realising the need to find new ways to spur economic growth.

"Encounters such as ours can facilitate the marriage of opportunity,
capital and entrepreneurship to yield tangible results," he said.

Abdullah said trade between Malaysia and Bahrain had grown from a
relatively low base of US$47.3 million in 1997 to US$183.6 million in 2007. From
January to November 2008, total bilateral trade amounted to US$181.6 million.

He said he had been informed that Malaysian construction companies were
doing well in Bahrain, having successfully completed projects such as the
Formula One circuit, the North Manama Corridor improvement project and the
highway link to Durrat Al-Bahrain.

Ongoing projects undertaken by Malaysian companies include the Sitra
Causeway bridges, Shaikh Khalifa bin Salman Highway, Lulu Reef Island access
bridge and the Bahrain City Centre.

Besides construction, Abdullah said Malaysian companies could provide
products and services in sectors such as halal food and services, oil and gas
equipment and services, building materials, pharmaceuticals as well as
healthcare services.

Acknowledging that Bahrain was also a major Islamic banking and financial
sector, he said there should be greater engagement taking place between the
Islamic financial sectors of the two countries.

He also said that Bahraini companies should not miss the opportunity to
establish direct business contacts at the second Malaysia Services Exhibition
taking place in Dubai from March 17 to 19 and the Malaysian International Halal
Showcase from May 6 to 10 in Kuala Lumpur.

-- BERNAMA