M'SIA AND CHINA AGREE TO INCREASE BILATERAL TRADE

PUTRAJAYA, Nov 11 (Bernama) -- Malaysia and China have agreed to increase
bilateral trade and investment linkages especially in the area of palm oil and
Malaysian timber, Prime Minister Najib Abdul Razak announced here Wednesday.

"Both nations agree that there is enormous hope for our bilateral relations
and we are agree that we should work together to increase bilateral trade and
investment.

"China has become one of Malaysia's largest trading partners and we hope
that trade and investment will increase with China. China intends to increase
trade in respect of palm oil and Malaysian timber," he told a joint press
conference with Chinese President Hu Jintao, who is on a one-day visit to
Malaysia, at the Prime Minister's office.

Earlier, the two leaders met for a delegation meeting which lasted for about
an hour at the same venue.

This was Hu's second visit to the country, having visited Malaysia as
vice-president in May 2002. His visit also commemorates the 35th anniversary of
diplomatic ties between the two nations.

The Prime Minister said the signing of an agreement between Central Bank of
Malaysia and the Banking Regulatory Commission of China heralded a new era of
cooperation between the two countries in the area of finance.

"This is very meaningful in view of the current global economic challenges
and also deepens the integration of our economies," he added.

Najib said both countries also agreed that the completion of the second
Penang bridge, linking the mainland and the island, should be on time without
any delays.

He said Malaysia has also committed to grant Chinese companies the
construction of the Mengkuang Dam, the biggest dam in Pulau Pinang, a pulp and
paper project, construction of an aluminium smelting plant and the double
tracking rail project linking Gemas to Johor Baharu.

"We also have agreed that the area of cooperation should encompass more
areas such as energy, agriculture, fisheries, education and science and defence
and security cooperation," said Najib.

The Prime Minister said he also congratulated Hu on China's role as the
member of the G20 grouping as well as its help for the international
community to overcome the global financial crisis.

"I also thanked China on its positive role in Asean and we agree that
Malaysia and China should cooperate more in the international fora and
international matters.

"I believe this visit should be seen in positive light as it indicates the
desire to deepen and strengthen the already warm ties," said Najib.

He also said that both governments were eager to ensure that whatever
documents signed by the two nations today were implemented.

"We are confident of working closely together to bring our bilateral ties to
greater heights," he said.

He also said that Wednesday's meeting as "excellent" taking into account
that bilateral ties between the two countries, established some 35 years ago,
had blossomed over the years.

"Our bilateral ties are poised for an exciting phase. Both countries are
committed in taking these relations to a higher plane.

"President Hu's visit is not only important symbolically taking place during
the 35th anniversary of our diplomatic ties but also because we have managed to
cover a wide range of subjects and topics during this visit," Najib added.

-- BERNAMA