India-Malaysia signs liberal economic cooperation contract
Ministry of International Trade and Industry (Malaysia)
Malaysia : India-Malaysia signs liberal economic cooperation contract
June 8, 2006
Ministry of International Trade and Industry (MITI) announces economic cooperation between India and Malaysia:
The decision to explore the feasibility of comprehensive economic cooperation between Malaysia and India was made during the visit to India by H.E Prime Minister of Malaysia on 20 December 2004.
The subsequent meeting between the Minister of International Trade and Industry, Malaysia and the Minister of Commerce, India on 17 January 2005 in Kuala Lumpur, agreed that a Joint Study Group to be established to undertake the feasibility study on the Comprehensive Economic Cooperation Agreement (CECA).
The CECA between Malaysia and India to include: trade in goods and services, and investments; and economic cooperation activities in areas of mutual interest.
The Joint Study Group has met three times and had several inter-sessional exchanges of drafts. The draft report is expected to be finalised by the end of May 2006.
The conclusion of the CECA will allow Malaysia to enhance exports of goods and services to India through preferential market access. Malaysia’s trade with India has been expanding significantly over the last ten years. Trade with India increased more than seven-fold from RM2.5 billion in 1994 to RM19.14 billion in 2005
The CECA will enable Malaysia to expand and strengthen cooperation and collaboration activities in areas where India is advanced such as biotechnology, software development, science and education. It will also enable Malaysian service providers to tap the huge potential in the Indian market for construction related activities and infrastructure development.