By IANS,
New Delhi: Bolstered by an upswing in their economic ties, India and Malaysia Wednesday signed an extradition treaty and other accords to scale up their cooperation in areas ranging from education to trade.
Pitching for expanded economic ties across sectors, including infrastructure and energy, the two countries decided to fast-track negotiations to clinch a free trade area agreement by the end of 2010.
Prime Minister Manmohan Singh and Malaysian Premier Mohammed Najib Tun Abdul Razak, on a five-day state visit here, held talks on a wide range of bilateral, regional and global issues here.
Expanded cooperation in countering terrorism, more collaboration in knowledge industries and a proposed FTA figured prominently in the discussions.
After the talks, the two sides signed a clutch of agreements, including an extradition treaty, a memorandum of understanding on higher education and another pact between Securities and Exchange Board of India (SEBI) and Securities Commission of Malaysia. Called the Malaysia-India Capital Collaborative Agreement, it promises to be a key step in accelerating two-way foreign investment.
The extradition treaty, which the two sides have been negotiating for years, was signed by External Affairs Minister S.M. Krishna and his Malaysian counterpart Anifah Aman.
In 2002, a Malaysian court had refused to extradite Ottavio Quattrocchi, one of the prime accused in the multi-billion dollar Bofors payoff scam that rocked India over two decades ago. There was no formal extradition treaty between India and Malysia at that time. Quattrocchi was arrested in Malaysia in 2000.
India hopes that the extradition treaty will help both countries in countering trans-national crimes, official sources said.
Interacting with Indian industrialists, the Malaysian leader suggested the formation of a bilateral forum of chief executives and called for the finalisation of a Comprehensive Economic Cooperation Agreement by the end of this year.
“I believe the time has come to move forward towards a resolution that will spur economic growth for both our nations,” Razak said at a joint interaction with leading industry chambers.
Razak’s decision to visit India, in the first year of his government, soon after visiting China, underlines a shift in perception about India in Malaysia and other ASEAN countries and their keen desire to forge a closer relationship with a rising Asian power.
India is increasingly seen in Malaysia as a source of quality technology and a hub of innovations in biotechnology, IT and education.
“India has high quality technology to serve diverse sectors, and vast experience in a wide range of sciences,” Razak said.
“Malaysia, on the other hand, needs expertise in bioscience, ICT, and in education. It makes sense for us to look to India as a key source for them,” he stressed.
Bilateral trade crossed $10 billion in 2008.
Razak also advocated a greater role for Malaysian construction companies, which have already completed projects worth $2.3 billion here, in India’s infrastructure expansion.
Razak, who arrived in New Delhi Tuesday on a five-day state visit, was given a ceremonial welcome in the forecourt of Rashtrapati Bhavan Wednesday morning. He called on President Pratibha Patil and discussed bilateral relations.
He also met the ruling United Progressive Alliance chairperson Sonia Gandhi and External Affairs Minister S.M. Krishna.