MATRADE EXPECTS MALAYSIA-CHINA TRADE TO GROW FURTHER

KUCHING (Malaysia), June 25 (Bernama) -- The Malaysia External Trade
Development Corp (Matrade) expects bilateral trade between Malaysia and China to
continue growing when import tariffs on another 2,000 products are lifted by
end-2010 under the
China-Association of South-East Asian Nations (Asean) free trade agreement
(FTA).

Matrade's manager for East Asia/Asean section (international network & trade
promotion division), Suresh Kumar Palasanthiran, said more Malaysian
entrepreneurs whose products were on the list to jump onto trade with China.

"Under the China-Asean FTA, China had reduced the import tariffs on more
than 7,000 products from Asean.

"By end-2010, the bulk of duties on goods entering China from Asean
countries would be reduced to zero. The implementation of the tariff reduction
programme also means that more than 9,000 products imported from China to
Malaysia will also be duty-free

"This will continue to boost bilateral economic and trade cooperation
especially between Malaysia and China," he said at the third leg of the
promotion for the 6th China-Asean ExpoO 2009 (CAEXPO) here.

A total of 4,000 international standard booths would be set up at the
CAEXPO, which would be held on Oct 20-24 in Nanning, Guangxi.

Suresh said China has sustained its position as Malaysia's fourth largest
trading partner.

Since 1997, he said, Malaysia's total trade with the China has consistently
registered double-digit growth annually.

He said last year, total trade between Malaysia and China increased by 10.3
percent to RM130.1 billion (US$1=RM3.58) with exports totalled RM63.2 billion
and imports RM66.9 billion.

"Malaysia's export to China maintained its positive growth over the past 10
years, averaging 28.4 percent annually and among the Asean members, Malaysia
remained China second largest trading partner, after Singapore," he said.

Meanwhile, the commercial consul of consulate-general of China here, Chen
Guowen, said the global economic turmoil has affected bilateral trade between
Malaysia and China.

"The bilateral trade volume between China and Malaysia, for the first four
months this year was US$13.1 billion (US$1=RM3.49), 21.1 percent lower than the
corresponding period last year," he said.

-- BERNAMA