The agreement, which was signed by deputy prime minister Ahmad Zahid Hamidi and Timor-Leste foreign minister Bendito dos Santos Freitas at a hotel here, seeks to facilitate joint initiatives and expand economic opportunities in Timor-Leste’s rural areas.

Zahid, who is also the rural and regional development minister, said Malaysia would share its experience in digital entrepreneurship, and technical and vocational education and training to help Timor-Leste build a stronger and more inclusive rural economy.

“It took us six decades to reach where we are today in rural development. I hope Timor-Leste can achieve the same progress within three decades,” said Zahid.

He added that Malaysia had sent a delegation to Timor-Leste to identify potential areas of collaboration in improving rural infrastructure.

Zahid also said Malaysia’s commitment extends beyond technical assistance, noting that discussions are already under way between Malaysian investors and their Timor-Leste counterparts.

“We are engaging with various private players, but there are still limitations when it comes to foreign direct investment and incentives,” he said.

Freitas described the agreement as a testament to true cooperation and bilateral relations becoming a reality, adding that Timor-Leste hopes to benefit from Malaysia’s knowledge and experience in rural development.

“With these MoUs, we can bring our two countries closer together for rural development. We hope Malaysia’s experience can help bring common good to the people of Timor-Leste,” he said.

The MoU follows two other agreements signed last Saturday to increase cooperation in the telecommunication and media sectors.

It also comes just a day after Timor-Leste officially became Asean’s 11th member, with Timor-Leste prime minister Kay Rala Xanana Gusmão signing the declaration of accession at the 47th Asean Summit in Kuala Lumpur.