1.   As a step to further bolster bilateral trade, Dr Lim said Malaysia and China have agreed that they pursue the possibility of using counter trade.

2.   Counter trade measures could be introduced.

3.   Malaysia is expected to start conducting some trade through the counter trade or barter system in an effort to reduce dependence on foreign currencies, especially the U.S. dollar.

4.   Meanwhile, an official from the National Energy Policy Office said it is considering whether to make counter trade compulsory or voluntary for the oil industry.

5.   The counter trade agreement was signed by B.J. Habibie, state minister for research and technology, and Thai Minister for Agriculture and Cooperatives Sawit Khunkitti.

6.   The shift in the crude oil purchase philosophy is in accordance with government policy for state enterprises to increase counter trade to boost exports of Thai products.

7.   To encourage counter trade for oil, a reduction in oil fund contributions might provide an incentive to oil importers.

8.   Thus, counter trade will help.

9.   Government officials have said that foreign firms must agree to technology transfer, counter trade or local investment in order to win such orders.

10.   Indonesia has sold or offered to sell several of its planes under counter trade deals with neighbouring countries.