TAIPEI, July 6 (Bernama) -- International Trade and Industry MinisterDatuk Seri Rafidah Aziz said that Malaysia has asked Taiwan to reduce the20 percent import duty on oil palm fibre which is used for orchid growingin the island state.

She said the matter was brought up at the Sixth Taipei-Kuala Lumpur TradeInvestment Meeting here Monday.

"From Malaysia, we have (brought up) one issue, that is the 20 percentimport duty on oil palm fibre. Palm oil does not attract any (import) dutybut its fibre and other by-products, yes," she said.

"They (Taiwan) said that there is a competition with coconut fibre andthey will review it if they can," she said.

"However, we would like it to be reduced," the minister told Bernama here.

Rafidah is leading a three-leg trade and investment mission to Taiwan,Japan and Hong Kong from July 4 till July 15. The mission will leave forJapan Tuesday evening.

Elaborating on the outcome of the meeting, the minister said Malaysia hadagreed to follow up several proposals submitted by the Malaysian privatesector on the construction industry, agriculture, research and development(R&D), exchanging information on small and medium-sized enterprises (SMEs)development and the innovation technology.

Proposals concerning agriculture would be handled by the Ministry ofAgriculture and Agro-Based Industries while the Science, Technology andInnovation Ministry would tackle matters concerning R&D and biotechnology,she said.

Malaysia's Small and Medium Industries Development Corporation (SMIDEC)will be the focal point for the development of SMEs, she said.

Rafidah also said Malaysia would participate in an SME Forum to be held inTaipei this year.

On Taiwan's request for a bilateral agreement to be signed on toxic waste,she said Malaysia would not sign any bilateral agreement with Taiwanbecause of the country's "One China Policy".

"I have made a very clear statement to the committee that Malaysia cannotmeet all the requirements simply because this would violate the One ChinaPolicy and Malaysia will continue to adopt the One China Policy," sheemphasised.

"I have also made it very clear that we cannot proceed anything that hadsomething to do with government to government," Rafidah explained.

She pointed out that only chambers of commerce, industry associations ororganisations such as the Malaysia External Trade Development Corporation(MATRADE) are allowed to have agreements or memoranda of understanding.

"That is alright."

Rafidah said Malaysia also refused to allow visa exemption for Taiwanesetravelling to Malaysia.

"I have to make it very clear, whereever we can do, we will certainly do.For example, they have asked for visa exemption. Again that is notpossible because this committee only works to enhance economicco-operation and facilitate trade and investment flows," she added.

Taiwan was Malaysia's seventh largest trading partner in 2003, accountingfor 4.3 percent of the country's global trade.

-- BERNAMA