From India With Love

PM Najib has high-tailed to New Delhi to conclude a key economic pact between Malaysia and India, possibly eyeing India’s “mind-boggling” infrastructure spending plans to help fuel growth in Malaysia. So, is that the new economic model to be brought home from the Indian sub-continent?

Kuala Lumpur mooted a Comprehensive Economic Cooperation Agreement (Ceca) with New Delhi some months after Singapore and India signed a Ceca in June 2005 — the most ambitious agreement of its kind attempted by India until then.

As usual while Singapore played the hare, Malaysia fumbled along the way tortiose- style owing to political inaction and difficulties on both sides.This is one time, Malaysia Tidak boleh!

Meanwhile, ASEAN and India clinched a free trade agreement (FTA) that came into effect three weeks ago. While Malaysia is one of the biggest beneficiaries of the FTA, Najib wants to do more to take bilateral trade beyond the current US$10 billion (RM34 billion) level.[Are you sure?]

“Our bilateral trade has been growing at an annual pace of 23 per cent over the past five years.It is time to take our collaboration to a higher level. The Ceca is vital for us to conclude and I would like to see it in place by the end of the year if possible.”

Najib, faced with extremely flagging growth at home, is looking for new engines to boost economic expansion, and India’s US$1.2 trillion economy, which some expect to clock double-digit expansion next year, is a huge lure.

Malaysian infrastructure companies have completed 51 projects in India worth US$2.3 billion in recent years, and are currently handling contracts worth a similar sum. These range from airports to highways and parking facilities.

India has emerged as the nation with the largest infrastructure plans, Najib explained.

“It is mind-boggling when you think that India is planning to spend half a trillion dollars on infrastructure over the next five years,” he said. “Malaysian companies have a good track record in infrastructure and they tell me that the Indian government is a good paymaster.”[Who isn't except Malaysia which is bucking up, I hope...]

He also made a strong pitch for Indian companies to consider listing their shares on the Malaysian board and to tap its capital markets.[How-lah? No momentum!]

“Our capital market is broad-based and our regulatory framework meets international standards,” he said. “Our bond market is the third largest in Asia on a GDP-adjusted basis, after Japan and South Korea. The World Bank and International Finance Corp have all generated funding through our bond market.”

Let us see the substance in action. Can Malaysia Boleh lagi?