Relations between India and Malaysia are set to receive new impetus with the two countries on Wednesday signing a broad-based trade-opening agreement and deciding to forge closer cooperation on a range of other areas, including defence, anti-terrorism and hydrocarbons. The two sides resolved to impart strategic dimension in their relations as Prime Minister Manmohan Singh held wide-ranging talks with Malaysian counterpart Mohd. Najib Tun Abdul Razak in Putrajaya, Malaysia’s administrative capital, after which six pacts were signed in various fields like science and technology, IT and health.
Dr. Singh invited Malaysian companies, which have good record in infrastructure, to invest in the sector in India pointing out that funds to the tune of $one trillion would be required over the next seven years and rules were being relaxed to enable smoother FDI flows.
The two sides also set up a CEO’s forum to encourage direct interaction between business and industry in each other’s countries as well as in third countries while setting the target of $15 billion by 2015.
The two leaders formally announced conclusion of negotiations on Comprehensive Economic Cooperation Agreement (CECA), which is aimed at enabling freer movement of goods, services and investments.
The Agreement, negotiations for which began in February 2008, will be formally signed by January next year by when all legal formalities would be completed.
The CECA has a wider scope and coverage than the ASEAN-India agreement, which only covers goods, and as such provides companies of the two countries better market access for goods and services.
Besides, the timelines for tariff concessions have been advanced by six months to a year.
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