NEW DELHI, Jan 20 (Bernama) -- India-Malaysia trade ties may hit a crescendo after Malaysian Prime Minister Datuk Seri Najib Tun Abdul Razak invited cash-rich Indian investors to consider Malaysia's growing capital market. The Malaysian capital market, currently worth over RM600 billion, is the third largest in Asia after Japan and South Korea and will be an ideal platform for Indian investors to raise funds, as many companies are focusing on regional expansion due to the global currency crunch.

"The other sector worthy of your attention is the Malaysian capital market, in particular its fund-raising capability. Our capital market is broad-based and our regulatory infrastructure meets international standards," Najib told a group of top Indian businessmen participating in the Malaysia-India Business Forum in Delhi Wednesday.

"Our investor protection framework has consistently been rated among the top four in the world by the World Bank," he said.

The Malaysian capital market plays an important role as a source of funding for both domestic and international institutions and firms, he added.

Describing India as a high-powered economy in the region, Najib said India and Malaysia could be strategic partners in developing better trade volume, breaching the current US$10 billion (RM35 billion) bilateral trade.

"India is promising, the future between both countries is enormous but the bilateral relations have not been fully tapped. It makes sense for us to look to India as key source for bioscience, ICT (information and communications technology) and education," he said.

"We invite Indian biotech companies to participate in the development of this industry and take advantage of the incentives that are being offered."

On the domestic economy's health, Najib said the current global economic slowdown had arrested Malaysia's growth pattern but signs of recovery were visible.

"We are confident that our GDP (gross domestic product) will grow to reach or exceed 3.5 per cent this year," he said.

"The recovery in part because of the swift action of the government to inject unprecedented stimulus (package) into the economy, while finding reforms that allow us to cut deficit."

Wednesday's forum was jointly organised by the Associated Chamber of Commerce, Confederation of Indian Industry, and the Federation of Indian Chambers of Commerce and Industry.

-- BERNAMA