With bilateral trade between India and Malaysia progressing on a robust path, Union Commerce and Industry Minister Anand Sharma, on Wednesday, announced that the target for $15 billion turnover is likely to be achieved by 2013, prompting both nations to revise the target.
Mr. Sharma also announced that Khazanah Nasional Berhad (Government of Malaysia’s strategic investment fund) and IDFC have joined hands to form a special purpose vehicle (SPV) with an equity base of Rs.830 crore for taking up infrastructure projects in India. “India’s bilateral trade with Malaysia stood at nearly $13 billion last year, registering a growth of 34 per cent over the previous year. While we had set a trade target of $15 billion by 2015, I am confident that we will be able to achieve this target definitely by 2013, if not this year. I will be proposing to my Malaysian counterpart Mustapa Mohamed that we revise this target upwards,” he said while addressing the India-Malaysia CEO Forum meeting here.
Mr. Sharma said during his visit to Malaysia last year, he had sought investment from Khazanah Nasional Berhad in the Indian infrastructure sector through a collaborative venture with IDFC. “A SPV has been created between Khazanah and a subsidiary of IDFC with an equity base of Rs.830 crore for financing the national highway construction projects,’’ he added.
He said both countries had identified priority sectors of engagement, including roads and highways, railways, airports, IT & ITeS, biotechnology, tourism, health services and joint venture projects in third countries. Malaysian investment in India stands at $7.8 billion while Indian investments in Malaysia are about $3 billion. Indian investments in Malaysia are growing steadily. At present, there are more than 100 Indian companies, including 61 Indian joint ventures operating in Malaysia. In the past three years alone, about $2 billion have been invested by Indian companies making it the 7th largest investor in Malaysia.
The India Malaysia CEO forum is co-chaired by Malvinder Mohan Singh from India and Tan Sri Krishnan Tan Boon Seng from Malaysia.
