Malaysia and Japan are expected to conclude discussions on a free trade agreement (FTA) within a year, Trade Minister Rafidah Aziz said today.

Rafidah, who is leading a trade mission to Japan and South Korea, was quoted by the official Bernama news agency as saying that Japan needed more time to seek agreement from its various ministries.

Speaking from Seoul she said the proposed FTA, which comes under a framework called the Close Economic Partnership (CEP) initiative, was right on track.

"We had a meeting between officials from Japan and Malaysia and they were very positive," she said.

"Ministers are working to realise the CEP as soon as possible. My Japanese counterpart said it would be concluded within a year."

Similar pacts

The proposed FTA will cover liberalisation of trade in goods, services and investment, trade and investment promotion and facilitation measures, and cooperation, Bernama said.

Japan set up its first-ever FTA in November last year with Singapore, and is working on similar pacts with other members of the Association of Southeast Asian Nations (Asean) as well as South Korea and Mexico.

Rafidah said South Korea was also studying the possibility of setting up an FTA with Malaysia.

"We are talking about having a framework agreement first and trade investment facilitation, which may include the longer-term FTA. They want to study the concept first," she added. - AFP