India, KL to build satellites, airports

India, KL to build satellites, airports

Agence France-Presse, New Delhi

India and Malaysia on Monday agreed to join forces to develop
satellites and build an international airport in Hyderabad
following wide-ranging talks between the two countries' leaders,
the Indian government said.

The joint venture between the Indian Space Research
Organization's commercial subsidiary, the Antrix Corporation
Limited, and Malaysian firm MEASAT Global Bhd is aimed at
creating a satellite network for millions of broadcasting and
telecommunications customers in the Asia-Pacific region, a
statement said.

The two sides also signed an agreement to jointly develop the
airport in the southern city of Hyderabad, which is which is fast
emerging as a rival to India's IT capital Bangalore and has a
growing traffic of overseas travellers.

Earlier, Malaysian Prime Minister Abdullah Ahmad Badawi said
Malaysia saw tremendous potential for growth in economic ties
with India and is looking west for new alliances here as New
Delhi looks east.

"I am told that India is increasingly looking east to develop
stronger trade and financial ties," Abdullah told a meeting of
Indian industrialists in New Delhi.

"We are increasingly looking west -- towards India and West
Asia. I am here to build new bridges, construct new economic
alliances and generate fresh economic cooperation," he said.

The Malaysian leader said bilateral trade had grown to be
worth 3.2 billion in 2003 from US$467 million in 1994, and this
could be improved.

Malaysia's economy is set to grow 7.0 percent in 2004, in line
with India which is forecast to grow 6.0-6.5 percent.

Indian investment in Malaysia -- mainly in petrochemicals,
textiles, food manufacturing and rubber -- totaled half a billion
dollars, Abdullah said, adding Malaysian companies had similarly
invested in India.

He also urged businessmen from both sides to forge "smart
partnerships" to explore opportunities together in third markets
-- the Middle East, Central Asia, East Asia and Africa.

Malaysia, which is to assume chairmanship of the 10-nation
Association of Southeast Asian Nations next year, was India's
largest trading partner from the grouping, Abdullah said.

"This will eventually constitute a single market of more than
two billion people ... that is why it would make economic sense
for Indian companies to make Malaysia a manufacturing and
exporting base," Abdullah said.

Abdullah, who arrived here on Sunday on an official visit,
held talks with Indian Foreign Minister Natwar Singh and Finance
Minister Palaniappan Chidambaram earlier in the day.