Indian conglomerates are keen on Malaysia and more than RM2 billion of investments from two companies are on the cards this year, says Malaysia's investment agency.
The Malaysian Industrial Development Authority is in talks with two Indian companies involved in pharmaceuticals and biotechnology.
Director-general Datuk Jalilah Baba said both parties have not decided on the location for their operations in Malaysia. However, it could be finalised before Indian Prime Minister Manmohan Singh's visit to Malaysia at the year-end.
The plants will be their hub for Southeast Asia.
"There are also other Indian investing interest in Malaysia, but on a small scale," Jalilah told the media on the sidelines of a bilateral meeting between Malaysia and India at the Ministry of International Trade and Industry (Miti).
In the first four months of this year, Malaysia received investments totalling US$565,342 (RM1.8 million) for two projects involving chemicals and chemical products and transport equipment.
To date, there are 95 manufacturing projects with a total investment of US$1.11 billion (RM3.6 billion) with Indian participation, creating 13,032 jobs.
On Malaysian companies with projects in India, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said they had ventured beyond construction into sectors like healthcare and banking.
"We'd like to see 'greater' goals of trade and investment in biotech, energy, manufacturing and automation," he said.
On the Comprehensive Economic Cooperation Agreement (Ceca), Mustapa said negotiations, which have undergone five rounds, are still on track for a successful conclusion by September, ahead of Manmohan's visit.
"Our officials have been working very closely (and the talks) would need political push at some point.
"The future looks promising for Malaysian investments in India," he said.
On the Asean-India free trade agreement (Aifta), which have seen Mustapa and his Indian counterpart exchange views on key issues, Mustapa said it could be concluded in two months, in time for the Asean Summit in Hanoi, Vietnam, in October.
The Aifta negotiations on services and investment follow the successful implementation of the Aifta Trade in Goods Agreement on January 1 this year.
Indian Commerce and Industry Minister Anand Sharma said both Malaysia and India have agreed to cooperate for the larger integration of the Comprehensive Economic Partnership in East Asia involving Asean, Australia, China, Japan, South Korea and New Zealand.
"The Asean region is vibrant and today's global economic developments show significant growth from Asia and developing countries," Sharma said.
India is Malaysia's 12th largest global trading partner, with trade totalling US$7.1 billion (RM22.8 billion).
The Indian economy is poised to grow 9 per cent this year.
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