Malaysia To Progress FTA With GCC

by Mary Swire, Tax-News.com, Hong Kong

04 June 2010

Malaysia’s Deputy International Trade and Industry Minister, Datuk Mukhriz Mahathir, has disclosed that Malaysia is to work on the framework for a free trade agreement (FTA) with the Gulf Cooperation Council (GCC).

Having held a meeting with the GCC Secretary-General, Abdul Rahman ibn Hamad al-Attiyah, in Singapore, Datuk Mukhriz Mahathir said that the framework for the FTA should be made ready for a further meeting in Kuala Lumpur in October this year.

While it is reported that the GCC wishes to complete negotiations it has already begun with the United States and Europe before starting talks on further agreements, Malaysia has been requested to include trade in both goods and services within the framework.

An FTA could boost two-way trade and investment in a number of sectors. Malaysia is looking at opportunities in areas such as Islamic banking and finance, ICT, renewable energy and tourism, while the GCC countries could develop businesses in the oil and gas, plastic products and food industries, while also setting up regional headquarters in Malaysia.

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