KUALA LUMPUR - MALAYSIA has signed an agreement with Asean member countries to facilitate implementation of interstate travel for the transportation of goods within the region, which will see the abolition of the levy when it comes into effect in 2010.

Transport Minister Datuk Seri Ong Tee Keat said the Asean Framework on Facilitation of Interstate Transport which was signed during the Asean Transport Ministers (ATM) meeting in Manila on Nov 6, was aimed at facilitating transport of goods between and among the countries of the grouping.

The agreement was one of the three key memoranda of understanding sealed at the 14th ATM.

It was also to support the implementation of the Asean Free Trade Area and to work towards establishing an effective and efficient transport system that would address all aspects of inter-state transport.

'From 2005 onward, initiatives to facilitate the interstate land transport had been done and we had set a time frame until 2010 for this to be completed,' he told reporters after opening the World Heart and Diabetes Day here, today.

Presently, trucks and lorries which leave Malaysia for Singapore are required to pay RM200 per vehicle while, laden trucks from the republic to Malaysia will have to pay RM100 per vehicle.

'Ultimately all levy will have to go,' he said, adding that overnment was expected to lose some RM143 million in revenue when the plan was implemented.

Another crucial agreement signed was to liberalise all types of air services, including air cargo within the Asean region by Dec 31.

'By the end of this year, air services between capital cities in Asean will be liberalised in the sense that there will not be any limitation on frequencies, capacities, as well as type of aircraft deployed in providing such services,' he said.

However, he said implemetation of the open sky policy between Malaysia and Singapore will be implemented earlier on Dec 1.

Mr Ong, who is also MCA president, said the party's new key office-bearers will be decided and announced during the central committee meeting next Tuesday. -- BERNAMA