UK Trade & Investment (UKTI), a government body that facilitates inward and outward investments and trade, has come out with a new five-year, target-driven strategy that aims to attract high-value investments.

UKTI head for Asia Pacific, Tony Collingridge, said under the five-year strategy, Malaysia has been identified as one of the high-growth markets in Asia, outside China and India.

"Malaysia is one of not-many-priority markets in Asia. It is one of the key emerging markets which UKTI will be putting in extra efforts," he said in an interview with Business Times in Kuala Lumpur recently.

Collingridge said major investors from Malaysia are already present in the UK in various fields.

Among Malaysian companies that have invested substantially in the UK include YTL Power International Bhd's ownership of Wessex Water Ltd - STG1.2 billion (RM8.20 billion); national oil company Petronas' £80 million (RM547 million) investment in 30 per cent stake in an LNG terminal in Wales; and MUI Group's ownership of Laura Ashley Holdings Plc and Corus Hotels Plc.

Others include Proton Holding Bhd's controlling stake in Lotus; Usaha Tegas Sdn Bhd' ownership of the ExCeL Exhibition Centre in London Docklands; mobile content developer Billadam Europe Ltd's £50 million (RM342 million) deal to provide the map of London city on mobile phones; Unisem (M) Bhd and HT Consulting (Asia) Sdn Bhd).

According to him, Malaysian investors in the UK are seeing good returns from their investments.

UKTI is now wooing the younger, high-tech companies in Malaysia to leverage opportunities available in the UK.

He said these companies need to grow while the UK has expertise in areas like telecommunications, software development, display technology and gaming software technology.

"We'll talk to companies about their business development and how they can do research and development (R&D), in partnership with British companies or British universities," he said.

Collingridge said 40 per cent of R&D conducted in the UK is done by foreign companies.

He said the UK has conducive business environment with highly skilled and international workforce, labour flexibility, low tax regime and excellent infrastructure.

London, which is one of the international financial centres, has liquidity and financial expertise to facilitate companies raising funds.

He said there are abundant opportunities in the UK, in areas like ICT, bio-science, renewable energy, environmental technology and automotive.

"The UK is the second largest country in the world with a population of bio-tech companies.

"With one per cent of the world's population, we fund 4.5 per cent of the world's science, while 18 per cent of the world's scientific papers come from the UK," he said.

UKTI director for trade and investment (Malaysia) Gordon B Reid said the UK is an important market for technology in the whole of Europe, while the country is only second after the US in biotech, in terms of patent and output.

"Malaysian Government is encouraging local companies, especially technology firms, to go abroad.

"The companies should consider getting expertise and partners from the UK," he said.