AUSTRALIA TO CAPITALISE ON MAS' PERTH-SABAH DIRECT FLIGHT TO ENHANCE TRADE WITH SABAH

KOTA KINABALU, Jan 12 (Bernama) -- Australia wants to capitalise on Malaysia
Airlines'(MAS) three-weekly direct flights between Perth and the east Malaysian
state of Sabah to boost trade with the state.

Australian High Commissioner to Malaysia Miles Kupa said the flights with
the capacity to fly 190 passengers at a time would prompt tourists and
businessmen to travel to Sabah.

"Trade in goods is not big between Sabah and Australia, but is significant
in services," he said, noting that 36,000 Australian tourists came to Sabah
every year.

He said Australia would look to Sabah for investment opportunities in
highway and dam construction and other infrastructures.

"We hope trade will cover government procurement such as greater access for
finance people, architects and engineers," he told reporters at the "Australia
Day in KK - 2011" networking reception hosted by the Australian Trade Commission
here Tuesday night.

Kupa said two-way trade between Malaysia and Australia amounted to A$14
billion (Goods-A$10 billion; Services-A$4 billion) in 2009.

"Australia is No 7 in Malaysia's top trading partners, but from January to
November last year, it became Malaysia's fastest growing trading partner, with
26 per cent growth," he said.

He said the Asean-Australia and New Zealand Free Trade Agreement (FTA),
which came into force on Jan 1, 2010, and the first FTA between Malaysia
and Australia, had spurred this development -- trade liberalisation in goods and
services have lowered tariffs.

Kupa said Australia could do much more in Sabah as it has been doing in
Peninsular Malaysia.

"One of the predominant areas is edu-tourism. Besides infrastructure and
green technology development, we can tap into oil and gas between Sabah and
Western Australia as some of the world's top oil and gas companies are in
Perth," he said.

He also said that Malaysia and Australia were set for another round of FTA
negotiations expected to be concluded next year or the following year.

"We want to improve and make additional concessions to promote trade in
goods and services and higher investment.

"Australian Prime Minister Julia Gillard has asked for the FTA talks to be
acceleated during her visit to Malaysia last month," he added.
-- BERNAMA