Chinese President Hu Jintao (胡錦濤) presided over the signing of a raft of deals with Malaysia yesterday and indicated an interest in its vast palm oil and timber sectors.
Hu, who is wrapping up a two-day official visit, and Malaysian Prime Minister Najib Razak witnessed the signing of five agreements and the awarding of a major infrastructure project to a Chinese firm.
Malaysia’s Bank Negara and the China Banking Regulatory Commission signed a deal to increase cooperation in banking supervision, in what finance officials said was a likely prelude to China being granted a banking license here.
“Today’s signing ... will open a new era of cooperation in the financial sector between the two countries,” Najib said as the two leaders addressed the media.
“This is very meaningful in view of the current global challenge as well as our goal to deepen integration of our two economies,” he said.
The other four deals include plans to cooperate in the education sector and in the sewerage services industry, and a loan agreement for the construction of a bridge in northern Penang state.
Najib said that Hu, whose country has an insatiable demand for natural resources to fuel its economic expansion, indicated an interest in Malaysia’s vast palm oil and timber sectors.
“President Hu remarked about China’s intention to increase the amount of trade with respect to palm oil and Malaysian timber,” he said, without giving further details.
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