21/11/2012 (Bernama) - More mergers and acquisitions (M&As) between Malaysian and Indian companies are expected to take place in the near future as Malaysia is being seen as the springboard for the latter's foray into other Asean countries.

High Commissioner of India to Malaysia Vijay K Gokhale said Indian companies are looking at the opportunities to tap into sectors such as electronics and healthcare.

"At the end of this week, one of India's healthcare services sector company, VLCC Healthcare is going to make a major acquisition in Malaysia involving an investment of about US$30 million.

"The company will acquire a Malaysian fitness company, called Wyann International, which owns a chain of fitness salons in Malaysia," he told Bernama.

To date, Malaysia received an investment of US$1.5 billion from Indian companies as several major Indian companies located their offices in Malaysia such as technology, engineering, construction and manufacturing company, Larsen & Toubrou and energy firm, Reliance Industries Ltd.

"Firstly, the ease of doing business in Malaysia in a very important factor. Secondly, the comfort of language and also the law. We both evolved from English law and thirdly, of course, the proximity to India," he said.

Between January and August, bilateral trade between Malaysia and India had crossed US$8.1 billion and is expected to hit US$13 billion by year-end.

"Even with the global slowdown, the bilateral trade is actually growing and we expect next year will be better," he said.

Gokhale pointed out that both countries were on track to achieve bilateral trade of US$20 billion by 2015 due to strong growth trade achieved in 2011.

"Last year, the bilateral trade grew 30 per cent after the signing of the free trade agreement (FTA)," he said.

Indian exports to Malaysia include chemicals, pharmaceuticals, textiles and food products while Malaysia exports electronics and electrical products, palm oil, petroleum products, synthetic textiles, furniture and wooden products to that country.

The FTA between Malaysia and India came into effect from July 1, 2011 and the India-Malaysia Comprehensive Economic Agreement envisaged liberalisation of trade in goods and services, investments and other areas of economic cooperation.

India's exports of items such as Basmati rice and mangoes are subjected to lower or no duty in Malaysia, thus giving them a boost.