10/08/2011 (Bernama) - The potential for trade and economic cooperation between Sabah and East Kalimantan (Kaltim) is vast, and it would require serious exploration by both the neighbours, says Chief Executive Officer of Sabah Economic Development and Investment Authority (SEDIA) Datuk Dr Mohd Yaakub Johari.

Not only they are located next to each other but there is also indication of tremendous economic development prospects in the region, he said.

"Based on our survey, Kaltim is among the richest regions in Indonesia. From our survey of the gas and oil industrial centres, ports and suggested areas for oil palm industry, it is clear that the rulers of Kaltim are aware of the potential of their economy.

"We also understand that the Gross Domestic Product of Kaltim is almost three times that of Sabah although we have almost the similar number of population."

Kaltim has a population of 3.6 million people and Sabah close to 3.2 million.

"Last year, Kaltim which is about three times the size of Sabah, expanded by nine per cent. This economic expansion is tremendous compared with the growth of other Asean economies," Dr Yaakub told Bernama here.

He said this when asked to comment on the outcome for SEDIA which is currently participating in a trade and investment mission to Kaltim led by International Trade and Industry Minister, Datuk Mustapa Mohamed.

Dr Yaakub said the tremendous potential offered by Kaltim would have to be given serious attention by investors from both sides amid the current uncertain economy situation faced by the US and Europe.

The time is right for Malaysia especially for Sabah, which is next to Kaltim, to explore the business potential of Kaltim while most other countries are looking at countries like China, India and other Asean countries.

Dr Yaakub said one immediate area to look into would be tourism to promote Sabah and Kaltim as tourist destinations.

Agriculture including oil palm industry, as well as the oil and gas sector will be among other areas to look at for cooperation between the two states, he said.