Malaysia, today, said the much awaited Malaysia-India comprehensive economic cooperation agreement (CECA) will be signed during Indian Prime Minister Manmohan Singh's visit later this year.
"The CECA is on track; the issues still under discussion are not insurmountable and we will be able to complete it as stipulated by the leaders of the two countries," Malaysian Deputy Minister for International Trade and Industry Jacab Sagan told reporters.
Sagan was speaking on the sideline of a day-long meeting on 'India-Malaysia: Emerging Opportunities,' organised by the Confederation of Indian Industry and Indian High Commission here in conjunction with the arrival of the Commonwealth baton ahead of the games in New Delhi begining October 3.
"We anticipate the signing of the CECA will be the highlight of Dr Singh's visit to Malaysia in November," Sagan said, adding Malaysian entrepreneurs are looking forward to meet high level business delegation that will accompany Singh.
A trade ministry official said the two sides are to meet this month end and again in July to tie up the loose ends. "We are looking at offers on the table," the official added.
Sagan said since 1998 India had been Malaysia's largest export destination in South Asia. "Our bilateral trade grew at an average rate of 23.7 per cent between 2004 and 2008 and India is now Malaysia's 12th largest trading partner," he told the businessmen from both the countries.
Noting that Kuala Lumpur is yet to fully exploit the trade potential, he remarked that the real comparison lies in Malaysia's trade relationship with China. "Our trade with China is five times that of our trade with India. This shows that there is still much room for us to grow Malaysia-India trade," he said, adding Malaysia also has to focus on widening the base of the bilateral trade.
India imports mostly petroleum products and vegetable fats and oils from Malaysia while the latter imports meat products, metals and petrochemicals from India. There is much more we can do to increase our trade in manufactures and other high value added goods.
Noting that there is great potential for exponential growth in trade in services, the Malaysian deputy trade minister Jacab Sagan said this sector had last yar accounted for 57.4 per cent of Malaysian GDP.
"Services is also one of India's key exports," he said adding to facilitate cross-border trade in services, the Malaysian government has approved new policies to ease the movement of talent into the country.
Commenting on cross border investments, he hoped that there would be big change this year in this area. India is at present Malaysia's ninth largest source of FDI, he said with total approved investments totalling $1.2 billion between 2004 and 2009. India approved 286 Malaysian investment projects totalling $2456 million between 2004 and 2009.
Sagan concluded that with the signing of the CECA, the two countries would embark on extensive liberalisations in services and investments with both areas not yet covered under the present Asean-India Free Trade Agreement. He also urged both sides to take advantage of the potential opened up by these trade arrangements.