On 25th May 2005, the Prime Minister of Japan,
Mr Junichiro Koizumi, and the Prime Minister of Malaysia, Dato’ Seri Abdullah
bin Haji Ahmad Badawi met, whereby it was confirmed that agreement in principle
has been reached on major elements of the Japan-Malaysia Economic Partnership
Agreement (hereinafter referred to as the “JMEPA”).

The JMEPA will mark a new era for Japan-Malaysia
strategic partnership, by forging closer economic relations through
cooperation, liberalization and facilitation in trade and investment between
the two countries.

The JMEPA will also cover a wide range of economic
activities including intellectual property, competition policy, enhancement of
business environment, and bilateral cooperation in the fields of agriculture,
forestry, fisheries and commodities, education and human resource development,
information and communications technology, science and technology, small and
medium enterprises, tourism and environment.

The two leaders agreed to expedite work in finalizing
the text of the JMEPA so as to enable it to come into force as early as
possible.