Malaysia, India finalize terms of free trade deal for 2011 - Summary

Wed, 27 Oct 2010

Kuala Lumpur - Malaysia and India on Wednesday put the finishing touches on a trade deal expected to be signed early next year, to boost annual bilateral trade to 15 billion dollars by 2015.

Indian Prime Minister Manmohan Singh and his Malaysian counterpart Najib Razak witnessed the signing of an agreement confirming the end of negotiations for the Malaysia-India Comprehensive Economic Cooperation Agreement.

The trade pact is expected to be signed by January 31, and take effect in the second half of 2011.

It covers goods and services as well as investments, and would provide a "solid foundation for the building of a strategic partnership," Singh said at a press conference with Najib in the Malaysian administrative capital of Putrajaya.

The deal is intended to complement a trade pact that took effect in January between India and the Association of Southeast Asian Nations, of which Malaysia is a member.

Both leaders also witnessed the signing of several agreements in the areas of health, tourism and education.

"The year 2010 is truly a turning point in the history of India-Malaysia relations," Singh said.

India was Malaysia's 12th-largest import source and 11th-largest export destination last year, with bilateral trade totaling 7.3 billion dollars.

From January to August this year, Malaysia's total trade with India rose 13.5 per cent to 5.65 billion dollars, compared to the same period in 2009.

An estimated 2.5 million ethnic Indians live in Malaysia, about 9 per cent of the population, and Singh was expected to meet with some members of the community later Wednesday.

Ethnic Indians, many of Malaysia's poorest citizens, have accused the government of discrimination and claim they have been left out of the country's development.

Singh said Wednesday he was confident that Malaysian authorities and laws respected the democratic rights of all its citizens, even as Najib stressed that the issue was a domestic matter and had not been discussed between the two leaders.

"I am confident that the Malaysian system has the built-in flexibility to tackle any problems," said Singh.

"I have no reason to be apprehensive of the future of Indian origin communities in this great country."

Source: Earth Times.
Link: http://www.earthtimes.org/articles/news/350583,deal-2011-summary.html.