Malaysian PM sees great potential in economic relations with India
Malaysian PM sees great potential in economic relations with India
Agence France-Presse, New Delhi
Malaysia sees tremendous potential for growth in economic ties with India and is looking west for new alliances here as New Delhi looks east, Prime Minister Abdullah Ahmad Badawi said on Monday.
"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.
"Malaysia is keen to significantly upgrade its economic relationship with India. Malaysia is keen to invest more to help strengthen India's infrastructure."
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 -- totalled half a billion dollars, Abdullah said, adding Malaysian companies had similarly invested in India.
"There is tremendous growth potential for cross-border investments," Abdullah said.
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 assume to chairmanship of the Association of Southeast Asian Nations next year, was India's largest trading partner from the grouping, Abdullah said.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
"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.
Later, businessmen from both sides signed 12 memoranda of understanding, pledging cooperation in areas ranging from IT and television software to infrastructure.
Abdullah, who arrived here on Sunday an official visit, held talks with Indian Foreign Minister Natwar Singh and Finance Minister Palaniappan Chidambaram earlier on Monday.
He was to meet Prime Minister Manmohan Singh later on Monday, with global terrorism and UN reforms on the agenda, foreign ministry official said.