KL not to follow S'pore in pursuing trade pacts

KL not to follow S'pore in pursuing trade pacts

Malaysia will not follow Singapore's lead in forging bilateral
free trade agreements because it supports gradual multilateral
trade liberalization under world trade rules, a report on Friday
quoted a senior minister saying in Kuala Lumpur.

Singapore became the first Asian country to sign a free trade
agreement (FTA) with the United States on Tuesday, kicking off a
sweeping liberalization of bilateral trade in goods and services.

The deal is expected to boost Singapore's status as the main
center for U.S. business in Southeast Asia's market of more than
500 million people.

Malaysian Trade Minister Rafidah Aziz was quoted by the New
Straits Times as saying Singapore's move was understandable as it
wanted to be a regional hub for services.

But Malaysia will not emulate its neighbor because its
financial services industry already has high foreign
participation and it will not further open its market until it is
ready, she said.

"Malaysia will not follow Singapore's footsteps in signing
FTAs with our trading partners and we will not open up our
services sector in one go. It will only be liberalized in
stages," Rafidah said.

"There will be no bilateral pacts in services, especially in
the financial sector because what is being offered under the
World Trade Organization rules is sufficient."

Since Singapore was ejected from the Malaysian Federation in
1965, the two have become economic rivals, with fast-
industrializing and resource-rich Malaysia steadily closing the
wealth gap with the island.

Singapore, with just four million people, is the most
prosperous but also the most trade-dependent among the 10 members
of the Association of Southeast Asian Nations (ASEAN), which has
created a regional free trade area. -- AFP