Shri Kamal Nath, Union Minister of Commerce and Industry, has informed that a proposal is underway for commencing negotiations for an India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) from January 2008. Inaugurating a Seminar on "Malaysia-India Business Opportunities", organized by the Confederation of Indian Industry (CII), the Minister said: "I am confident that this Agreement would take our bilateral relations to newer heights and would contribute to the growth of our economies". To take the trade and investment relations forward, both the countries had set up a Joint Study Group (JSG), and have recently adopted the JSG which recommended the establishment of a CECA, he added. The India-Malaysia Joint Study Group has outlined the huge potential for trade in goods, services and investment between the two countries. Shri Kamal Nath exuberated confidence that the recently concluded Joint Study Group estimate of catapulting the bilateral trade to US $ 16 billion by 2012 would be achievable.
During the occasion, Hon. Dato' Seri Rafidah Aziz, Minister of International Trade and Industry, Malaysia, stated that Malaysia and India have continued to deepen the relationship and the scope of cooperation has expanded to cover many areas of trade, investment, education and tourism. The Malaysian Minister further emphasized that today's Seminar is to provide the business communities of the two countries with: (a) an update of trade and investment opportunities in both countries; and (b) explore possibilities for cooperation in trade, investment, services and collaboration in other areas of mutual interest. The business delegation accompanying the Malaysian Minister include, companies in sectors such as manufacturing, trading and services to explore business opportunities.
The bilateral trade between India and Malaysia during 2002-03 was to the tune of US $ 2.2 billion and it increased three-fold during 2006-07 to the tune of US $ 6.6 billion. During 2006-07, India's exports to Malaysia stood at US $ 1.3 billion and imports from Malaysia at US $ 5.3 billion.
India's major exports to Malaysia include cathodes & sections of cathodes, meat & meat preparations, petroleum oils, onions & shallots, chemicals, cereals, yarn, garments, iron & steel etc. while major imports include petroleum oils, palm oil, electronic goods, wood manufactures, chemicals and yarn etc.
As regards foreign direct investment, Malaysia ranks 23rd largest overall investor and the second largest investor from ASEAN with a total inflow of US $ 142.98 million during the period August 1991 to July 2007. Malaysian investments are mainly in the areas of liquified petroleum gas and other products, power plants, paging systems, and construction of highways.
There are over 10 Indian companies including 60 joint ventures operating in Malaysia. Notably, joint ventures include Thapar Group, Aditya Birla Group, BHEL, HMT, IRCON etc.
