Malaysian PM woos Indian investors

Malaysian Prime Minister Najib Tun Abdul Razak has invited cash-rich Indian investors to consider Malaysia’s growing capital market.

This could give a boost to India-Malaysia trade ties. The Malaysian capital market, currently worth over RM600 billion, is the third largest in Asia after Japan and South Korea and will be an ideal platform for Indian investors to raise funds, as many companies are focusing on regional expansion due to the global currency crunch.

“The other sector worthy of your attention is the Malaysian capital market, in particular its fund-raising capability. Our capital market is broad-based and our regulatory infrastructure meets international standards,” Najib told a group of top Indian businessmen participating in the Malaysia-India Business Forum in Delhi on Jan 20.

Calling India as a high-powered economy in the region, Najib said India and Malaysia could be strategic partners in developing better trade volume, breaching the current US$10 billion (RM35 billion) bilateral trade.

“India is promising, the future between both countries is enormous but the bilateral relations have not been fully tapped. It makes sense for us to look to India as key source for bioscience, ICT (information and communications technology) and education,” he said.

“We invite Indian biotech companies to participate in the development of this industry and take advantage of the incentives that are being offered.”

On the domestic economy’s health, Najib said the current global economic slowdown had arrested Malaysia’s growth pattern but signs of recovery were visible. “We are confident that our GDP (gross domestic product) will grow to reach or exceed 3.5 per cent this year,” he said. The recovery was in part because of the swift action of the government to inject unprecedented stimulus (package) into the economy, he pointed out.

Wednesday’s forum was jointly organised by the Associated Chamber of Commerce, Confederation of Indian Industry, and the Federation of Indian Chambers of Commerce and Industry.

The visiting PM also stated Malaysia wants to complete talks this year for a separate trade-opening pact with India, in addition to liberalising commerce through the Indo-ASEAN Free Trade Agreement, operationalised this month. "I would like to conclude the Malaysia-India Comprehensive Economic Cooperation Agreement (CECA) by the end of this year, if possible," Mohd Najib Tun Abdul Razak said. He said he would invite Prime Minister Manmohan Singh to visit his country to sign the agreement.

With bilateral commerce exceeding USD 10.5 billion in 2008-09, Malaysia is India's second largest trading partner (after Singapore) among the 10-nation Association of Southeast Asian Nations (ASEAN).

Earlier, on Wednesday, India rolled out a full state ceremonial welcome for the Malaysian Prime Minister at the Rashtrapati Bhavan. On a cold and foggy winter morning, Prime Minister Manmohan Singh and his wife, Gurshana Kaur, warmly welcomed Najib and his wife, Rosmah Mansor.

The national anthems of the two nations were played and later Najib inspected a guard of honour, witnessed by top Indian and Malaysian dignitaries. Later, Indian External Affairs Minister S.M. Krishna called on Najib at his hotel for a brief discussion.

“The Prime Minister’s visit in his first year of taking office clearly underpins the eagerness of Malaysia to forge a sound relationship with India. “Likewise, we also fully reciprocate. There are so many commonalities between both countries, said Krishna.

India and Malaysia are likely to sign an Extradition Treaty and Memoranda of Understanding (MOUs) for cooperation in culture and tourism.

- Asian Tribune -