Malaysia, China poised to usher in new era of economic co-operation
By Channel NewsAsia's Melissa Goh | Posted: 11 November 2009 2316 hrs

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PUTRAJAYA: Malaysia and China signed a string of MOUs on Wednesday in conjunction with the state visit by Chinese President Hu Jintao.

Speaking after bilateral talks with Malaysian Prime Minister Najib Razak, President Hu said good bilateral relations can contribute towards regional peace and security.

This is the first visit to Malaysia by a Chinese head of state in 15 years. President Hu held an hour-long meeting with the Malaysian prime minister.

The meeting has been described as fruitful, with both sides pledging to take bilateral relations to greater heights.

Mr Najib said: "President Hu's visit is not only important symbolically but it's also very substantive. Both countries agree there is enormous scope to advance bilateral relations."

President Hu said: "Good bilateral relation will not only benefit both nations but also will contribute towards regional peace, security and prosperity."

Malaysia is China's largest trading partner in Southeast Asia, with trade exceeding US$53 billion each year. And that is expected to grow even more with the signing of five MOUs.

The most significant agreement was between the financial regulatory bodies of both countries to enhance trade and economic linkages and strengthen financial monitoring and integration.

An education MOU is likely to see more Malaysian graduates attend Chinese universities and vice versa.

Malaysia will be looking forward to boosting trade with China, its largest trading partner. Mr Najib said President Hu has indicated China's intention to buy more timber and palm oil from Malaysia.

In turn, Malaysia has given its commitment to award a string of contracts to Chinese construction companies - including the building a double tracking rail project in southern state of Johore, the Mengkuang dam in Penang as well as a pulp and paper mill and an aluminium smelter in the East Malaysian state of Sarawak.

Both sides have also agreed to maintain high level exchanges and explore new areas of cooperation in energy, tourism and services. - CNA/vm