KUALA LUMPUR: Australia hopes to establish closer co-operation with Malaysia in the automotive and medical industries, Rory McEwen, South Australia's Minister of Trade, Industry and Regional Development said yesterday.

"Six medical specialists came down here to look into forging a very close relationship in the medical area," he told reporters after meeting the Minister of International Trade and Industry, Datuk Seri Rafidah Aziz, at the latter's office here.

McEwen is leading a 22-member trade delegation from South Australia for a week-long visit to look into areas of cooperation in the automotive and medical fields.

The Australian High Commissioner to Malaysia, James Wise, and the High Commission's First Secretary (Political & Trade) Andrew Mitchell, and Australia Malaysia Business Council Southern Australia, Bert Tailor were also present at the meeting with Rafidah.

"We are have been looking at your paperless hospital in Putrajaya, basically looking at the digital system and I think we can learn a lot from that," he said.

On the automotive industry, McEwen, who visited the Perodua manufacturing plant in Serendah near here, said Australia has expertise in robotics and instrumentation and these could be used by local automotive manufacturers.

"Australia provides these products to car plants throughout the world," he said, adding that Malaysian car manufacturers could consider using them.

Total trade between Malaysia and Australia from January to August 2003 stood at RM9.2 billion (US$2.4 billion) compared with RM13.4 billion (US$3.5 billion in 2002.

Exports amounted to RM6.1 billion (US$2.4 billion) while imports totalled RM3.1 billion (US$0.8 billion).

In 2002, Australia was Malaysia's ninth largest export and import source and its 10th largest trading partner.

Major exports to Australia include electrical and electronic products (31.8 percent), crude petroleum (17 percent), furniture and parts (4.5 percent) and television (2.8 percent).

Major imports include minerals such as aluminium, zinc, alloys and coal (22 percent), wheat (8.1 percent) and milk products (5.0 percent).

From 1998 to August 2003, 92 manufacturing projects with Australian participation were approved with capital investment of RM619.3 million (US$162.9 million).

Australia was ranked the 14th largest investor in 2002 in terms of capital investment.

Malaysia's investment in Australia from January to June 2003 stood at RM146 million (US$38.4 million) compared with RM 172 million (US$45.3 million) in 2002.

This made Malaysia the second largest Asean investor after Singapore. - Bernama