FTA with New Zealand by end of this year
New Straits Times, Malaysia
FTA with New Zealand by end of this year
Balan Moses in Wellington
2 April 2005
MALAYSIA and New Zealand have rescheduled the signing of a free trade agreement to the end of the year, six months ahead of the June 2006 deadline announced on Thursday.
The announcement came yesterday after Malaysia and New Zealand officials led by International Trade and Industry Minister Datuk Seri Rafidah Aziz and her counterpart, Jim Sutton, agreed to have agreement in place earlier.
Datuk Seri Abdullah Ahmad Badawi made the announcement at a Malaysia-New Zealand business forum attended by more than 250 Malaysian and New Zealand businessmen.
"The ministers involved, Rafidah and Sutton, have given an indication that we will be able to sign the agreement not later than the end of this year," the Prime Minister said.
Describing the agreement as a milestone in bilateral relations, he said he and New Zealand Prime Minister Helen Clark wanted an early completion of talks on the matter so that both nations could reap benefits faster.
Abdullah said the Malaysia-New Zealand Business Council would play a crucial role in determining the outcome of the agreement.
He said the agreement would be based on the benefits accruing from the complementarity of both economies.
The Prime Minister had said after talks with Clark on Thursday that he was looking at completion of negotiations on the agreement by the middle of next year.
The agreement is expected to lead to a progressive liberalisation of trade between the nations.
It is also expected to see, among other things, a reduction and eventual elimination of all tariffs and non-tariff restrictions, simplification of Customs and Immigration procedures and promotion of joint investments.
This will mean cheaper goods for both sides besides greater opportunities to work together in education, construction, engineering, tourism and health.
Abdullah said there was ample scope for New Zealand investments in Malaysia and vice-versa with the former’s investments totalling only RM74 million in basic metal products and the chemical industry.
Malaysian companies had yet to harness the full potential of New Zealand’s investment environment with investments limited to real estate, food processing and forestry.
Abdullah urged businessmen on both sides to jointly look at the global market for halal food using Malaysian standards and New Zealand’s livestock, processing technologies and research and development in the food and pharmaceutical industries.
The Prime MInister later answered questions ranging from government assistance to the Bumiputeras to the "brain-gain" programme to attract Malaysian professional abroad back to the country and the progress of the smart school concept.
He said some Bumiputera companies had weaned themselves off government aid and were operating independently on a level playing field in Malaysia and abroad.
On the "brain-gain" programme, Abdullah said Malaysians abroad were welcome to return and put their experience to good use with the Government willing to grant work permits to wives who were professionals.
