Malaysia is in talks with the GCC states to agree the outline of a free trade agreement in the first quarter of this year, the Malaysian trade minister has said.
The two regions have signed a framework deal on economic, commercial and investment interests which is the first step towards a full trade agreement, said Dato’ Sri Mustapa Mohamed.
“The UAE is our biggest trade partner in the region. This is a framework agreement that will be the precursor of a free trade agreement,” he said in a speech at the ‘Invest Malaysia’ event in Abu Dhabi.
“We are hoping to begin the process in February or March. We are here in full force in order to demonstrate our commitment to the region.”
Foreign direct investment in Malaysia rose by 400 percent in 2010 to $9.5bn, Mustapa said.
A bilateral deal between Malaysia and the Gulf states is forecast to see trade increase by 41 percent, according to data from Malaysia’s trade ministry.
Total trade between the two countries reached $9.8bn in 2010, a rise of 25.6 percent on the previous year.
Malaysian government data also showed that domestic construction companies were involved in projects amounting to $11.1bn in the GCC.
The UAE currently plays host to around 165 Malaysian companies.
Follow us on
