Dhaka will formally propose a free trade agreement with Kuala Lumpur in the Bangladesh-Malaysia Joint Commission Meeting that begins in Dhaka today.

Dhaka will also seek duty-free access for 19 Bangladeshi products to the Malaysian market and propose setting up a joint trade commission at the two-day meeting, which is taking place after 11 years.

The last JC meeting was held in Kuala Lumpur in 1994 after its inception in Dhaka in 1992 to boost cooperation in various sectors between the two countries.

Export of manpower, easing off visa system, joint investment in energy and agriculture sectors, introduction of direct shipping as well as cooperation in IT, health, education and cultural sectors, among other issues, are likely to top the agenda at the 3rd JC meet.

The JC meeting bears a great significance for strengthening both

political and economic ties between the two states, official sources said.

Dhaka-Kuala Lumpur bilateral ties apparently plumbed the depths when Bangladesh announced its candidature for the OIC secretary general post, for which Malaysia too was a contender.

High officials of Bangladesh and Malaysia yesterday met and finalised the agenda of the meeting while secretary-level talks will be held today. These official level meetings precede the ministerial-level JC meeting tomorrow.

Foreign Minister of Malaysia Syed Hamid Bin Syed Zafar Al Bar is due in Dhaka today to lead his country at the meeting while Bangladesh Foreign Minister M Morshed Khan will lead the home side.

Both the foreign ministers will have a breakfast meeting tomorrow before the JC meeting. Political issues are likely to be discussed at the breakfast meeting, sources added.

The Malaysian foreign minister is scheduled to call on Prime Minister Khaleda Zia tomorrow.

Deputy Secretary-General at the Malaysian Foreign Ministry Haji Selim bin Hashim will hold talks with Economic Relations Division (ERD) Secretary Ismail Jabiullah today.

According to an official estimate, Malaysia's present investment in Bangladesh stands at around US$ 100 million in different sectors, including telecommunications, palm oil refinery and construction. It also has investment in capacity building in the fisheries sector under an OIC project.

Besides, the emerging economic powerhouse is keen to invest in lowcost housing projects and power sector in Bangladesh, sources said.

Presently, the two-way trade is heavily tilted towards Malaysia as Kuala Lumpur's export bill stood at US$ 254.66 million against Dhaka's US$ 8.66 million in 2003-04 fiscal year.

To reduce the trade gap, officials

said, Bangladesh will seek duty-free access of its various products, including jute and jute goods, leather and leather products, pharmaceuticals, frozen food, electric wires, melamine, tea and some other agro-products.

Besides, Bangladesh will offer special facilities to Malaysian investors willing to invest here, sources said adding that Malaysian investors have shown interest to invest in setting up agro-based industries, power units, rubber garden and processing units, IT and financial institutions.

Defence cooperation between the two countries is also expected to figure prominently in the discussion.

Dhaka will make a formal request to export manpower from Bangladesh, which has been suspended since the previous Awami League regime. Both the countries are expected to agree to fight Dengue and Nipa virus together.