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Indian companies will be encouraged to trade more with Malaysia not only to tap its domestic potential but also to use the southeast Asian country as a hub for their regional operations, Commerce Minister Kamal Nath said in Kuala Lumpur on Thursday.
Nath told the Malaysia Indian Economic Conference that Malaysia's proven expertise and track record in infrastructure provided a large window of opportunity for Malaysian companies to invest in India in the infrastructure development projects.
The minister's speech was read in his absence by Indian envoy Ashok Kantha.
Nath expressed optimism that based on current trends, the bilateral trade was expected to touch 10 billion US dollars by the end of 2008, two years ahead of the projected target.
Inaugurating the conference, Malaysia's International Trade Minister Muhyiddin Yassin noted that it was a time for witnessing a 'refreshing reversal of roles'.
"The developing countries are increasingly playing an important role in the global economy," the minister said, adding that far from stories of gloom and doom about countries like India and China, 'we are hearing stories of their success'.
Acknowledging that Indian economy was among the fastest growing in the world, Muhyiddin said the positive developments in India had certainly brought about a positive impact on Malaysia's bilateral cooperation.
Bilateral trade between Malaysia and India recorded an increase of 15.2 per cent from $6.45 billion in 2006 to $7.88 billion in 2007. Imports from India grew by 44.7 per cent to $2.04 billion in 2007 compared with $1.33 billion in 2006, making India Malaysia's 15th largest source of imports in 2007.
The minister said the implementation of the Trade in Goods Agreement under the Asean-India FTA in early 2009 would help boost trade.
"Indian businesses will be able to use Malaysia as a base for entry into the Asean market," he said, adding that his country was geo-strategically located in Asean and was in an advantageous position as the gateway for Indian companies to penetrate other markets in the region.