The Fourth Meeting on Malaysia-Japan
Closer Economic Partnership
(The Second Joint Study Group Meeting)

21 November 2003

The Fourth Meeting on Closer Economic Partnership (CEP) between Malaysia and Japan (The Second Joint Study Group Meeting) was held in Kuala Lumpur, Malaysia on 20th and 21st November 2003. This is the follow-up of the three previous successful Working Group meetings (including the First Joint Study Group) between officials from both governments held in Tokyo, Japan from 8 - 9 May 2003, in Langkawi, Malaysia from 4 - 5 July 2003 and in Kuala Lumpur, 29 - 30 September 2003. As in the First Joint Study Group Meeting, the Second Joint Study Group Meeting engaged in a robust exchange of views on the CEP. Representatives from the business and private sectors as well as academicians joined officials from both countries in the consultations.

The Japanese side was headed by Mr. Fumio Yawata, Director FTA/EPA Division, Economic Affairs Bureau, Ministry of Foreign Affairs while the Malaysian side was headed by H.E. Dato' Muhammad Noh, Under Secretary East and South Asia Division of the Ministry of Foreign Affairs.

The meeting was held in a cordial atmosphere befitting the warm relations that exist between the two countries. The Japanese delegation expressed their sincere gratitude to their Malaysian counterpart for the generous hospitality extended to them during their stay in Kuala Lumpur.

The Joint Study Group noted the findings of the academicians on the potential benefits of a bilateral CEP between Malaysia and Japan. The bilateral CEP would result in an increased in real GDP of Japan and Malaysia.

Both sides also continued their discussions on a broad range of issues relating to liberalization, facilitation and co-operation in trade and investment. Specific consultations were also held on trade in goods and services, rules of origin, investment, movement of natural persons, government procurement, customs procedures, paperless trading, standards and conformance, intellectual property, competition policy and business environment enhancement.

In addition, both sides discussed areas of co-operation to be considered for incorporation into the CEP, including education, science and technology, human resources development, co-operation in financial services, agriculture (especially in fruits, vegetables and food products), primary commodities, forestry, mining, information and communication technology, small and medium enterprises and research and development.

Both sides agreed that significant progress has been achieved in the consultation process. A report from the Joint Study Group will be submitted to the Leaders of both countries for their consideration. The Leaders will decide on the formal negotiations after completing the necessary domestic procedures.

The CEP is expected to further accelerate trade and business linkages between the two countries and further contribute towards enhancing competitiveness and productivity of the business community. Both delegations look forward to negotiations on the CEP.