MIC Party Urges M'sian Contractors To Tap Into India's Infrastructure Development

KUALA LUMPUR, April 20 (Bernama) -- Malaysian construction companies should capitalise on the booming development and expansion in India and explore the infrastructure and investment opportunities there, said Malaysian Indian Congress (MIC) President Dr S. Subramaniam. He said India had projected an investment of US$1 trillion for the infrastructure sector until 2017, and another US$650 billion would be required for urban infrastructure over the next 20 years. Noting that Malaysia has built many highways and roads, Subramaniam said Malaysian companies could tap into this sector as India has major ongoing infrastructure projects that provide pockets of opportunities. "Both countries have advantages...it is how the business communities of these countries can leverage on the expertise," he told reporters after the Malaysia-India Business Council (MIBC) annual general meeting (AGM) here, Tuesday. He said Malaysia and India had worked together in the past and the two countries could take this much further. To-date, Malaysian companies were involved in 78 highway and road projects with total investments of US$3.7 billion, out of which 17 projects are still undergoing construction now in India, said Subramaniam. Among the Malaysian construction companies that are involved in the 17 ongoing projects across 15 states in India are Plus Malaysia Bhd, IJM Corp Bhd, Bina Puri Holdings Bhd and Sunway Construction Group Bhd, said Subramaniam, who is also the Minister of Health. He also said there were 150 Indian companies which had invested about US$2.3 billion in Malaysia in the spheres of information and communications technology and biotechnology. With trade between the two countries totalling US$13 billion last year, he said there was an excellent scope to augment the bilateral trade, which is expected to reach US$15 billion this year. Meanwhile, MIBC President Kuna Sittampalam said India was on the threshold of major reform and was poised to become of the largest economies in the world. He said India was looking at foreign countries and companies to invest in its infrastructure. "What Malaysians are asking is for India to ease its regulatory framework so that we could borrow from Malaysia to invest in India. "The current regulatory work is not favourable and that's why the present Modi's (Indian Prime Minister Narendra Modi) government is addressing it," said Kuna. The financial reforms presented at the MIBC AGM included a promise not to resort to restropective taxation, proposal to reduce corporate tax rate to 25 per cent, additional deduction to manufacturing companies and additional deduction to employment. -- BERNAMA