Prime Minister Recep Tayyip Erdogan on Saturday said Turkish and Malaysian businessmen need to forge new and stronger economic ties such as in the reconstruction of Iraq since existing business links between the two countries is negligible.

"Our level of bilateral trade is far from satisfactory," Erdogan said in a speech at a business forum in Kuala Lumpur.

Total trade between the two moderate Muslim countries in 2002 was US$269.8 million, in favour of Malaysia. But trade volume fell 34.2 percent from the previous year.

Malaysia's exports worth US$211.1 million consisted of textiles, palmoil and electric and electronic products while imports valued at US$58.7 million made-up of steel, tobacco and motor vehicles parts.

Erdogan arrived here Friday for a three-day official visit, accompanied by his wife, Emine, and a 200-member entourage including five ministers.

Erdogen said contact between the business leaders of both countries should be encouraged to increase commercial activities in the industrial and services sectors.

"I consider establishing a long-term realtionship as another issue of priority," he said.

Bilateral agenda

Erdogen said Malaysian industrialists could cooperate with their Turkish counterparts to carry out infrastructure projects in a third country as happened in war-hit Iraq.

"Participation in the reconstruction activities of Iraq can be a part of our bilateral agenda as an issue of prior concern," he said.

Erdogen said Turkey could share its expertise in the construction of railways, cement, petrochemicals, iron-steel, defense and ship building with Malaysia.

The two countries could also promote the tourism industry, he said.

Erdogen said during his talks with Prime Minister Dr Mahathir Mohamad Friday, both leaders agreed that bilateral trade must be increased to US$1 billion.

"Both countries must work towards this end. I believe it is one way to stengthen solidarity between the two countries," he said. - AFP