Burma is offering Malaysian businessmen the opportunity to exploit the poverty-ridden Southeast nation's rich natural resources.

Chairman of the State Peace and Development Council (SPDC) senior general Than Shwe said today that the paper and pulp and iron ore industries are two sectors that hold great potential for cooperation between Malaysian and Burmese businessmen.

"Fifty-one per cent of our nation is still covered with forests, offering great opportunities for wood-based industries as well as for paper and pulp industries," said Than, who is leader of the country's military junta.

Than was speaking at a luncheon hosted by the National Chamber of Commerce and Industry of Malaysia in Kuala Lumpur.

According to Than, about 450,000 tonnes of pulp from bleached bamboo, 70,000 tonnes of pulp wood and 192,000 tonnes of paper could be produced annually from the 13 sites identified in Burma.

Working visit

The general is currently on a three-day working visit to Malaysia and met with Malaysian Prime Minister Dr Mahathir Mohamad in Putrajaya yesterday.

In the discussion, Malaysia and Burma have agreed to minimise the use of foreign exchange in trade between the two countries.

Than also said that substantial amount of iron ore deposits have been discovered in four different areas in Burma.

Geological surveys show that these sites have an estimated reserve of over 320 million tonnes of ore with high iron content, he said.

"Myanmar (Burma) has already initiated a nascent iron and steel industry by setting up rolled steel and integrated steel mills in the nation and I would like our Malaysian friends to look into this iron and steel sector as a possible area for cooperation," Than said.

Nevertheless, he assured Malaysian investors that his government is aware of environmental concerns.

"The utilisation of forest resources will be on a sustainable basis and we will not let our natural beauty be marred or polluted," said the general.

'Politically stable'

Than claimed that Burma is a country which is politically peaceful, stable and economically vibrant.

"It is on the threshold of rapid economic growth," he said, adding that although Burma had developed its economy on its own, it would like to obtain the assistance from 'friends' like Malaysia.

"We will surely be able to accomplish more in a shorter period of time. At the same time it will be mutually beneficial," he added.

Malaysia is the third biggest foreign investor in Burma with investments totaling almost RM2.3 billion in various sectors such as manufacturing, oil and gas, hotel and tourism and real estate development.

After the keynote address, five top officials from the junta held a question-and-answer session with the Malaysian business community.

Asked whether the junta would be able to come to an agreement with Burma's democratic leader Aung San Suu Kyi by year end, a representative of the junta declined to answer the question.

Minister in the Office of SPDC Brig-Gen David Abel said, "I personally would refrain from answering that question."

He explained that the officials were there to discuss economic matters which would affect those who would want to invest in Burma.