Malaysia hopes to elevate its bilateral trade relations with Iran in its post-sanction era, Datuk Seri Najib Tun Razak said.

The prime minister said the sanction on Iran resulted in total trade between Malaysia and Iran from January to June this year to drop to RM1.03 billion -- only half of what it used to be.

"Therefore, our immediate objective as agreed between President Dr Hassan Rouhani and I will be to double trade (volume) within the shortest possible time and to go even beyond that in the subsequent years," he told a joint press conference with Rouhani, who is on a two-day official visit here, today.

Najib said the key to this objective was to enable business transactions to take place within the two countries banking system.

"As you know, sanction has imposed a very restrictive way of doing business and the two central banks will get together almost immediately to find our workable new mechanism to enable the private sector of both countries to conduct business in an efficient and effective way.

"We want this to happen and I'm confident a new mechanism will be found in the shortest possible time," he said.

On palm oil, Najib said Malaysian Palm Oil Board (MPOB) had decided to open its regional office in Tehran by the first quarter of next year.

He said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong would lead a delegation to Iran soon.

On his meeting with the Iranian president, Najib said Malaysia was keen to participate in Iran's oil and gas, highway construction and automotive sectors.

"Iran has imported 12,000 Proton Saga (cars) in the past and we hope to participate in the automotive industry, particularly as supplier," he said.

On tourism, he said Malaysia and Iran hoped to increase the number of visitors between both countries.

"We see a somewhat decline in tourist (arrivals) from Iran and we hope the number will go up.

"We received about 65,000 Iranian visitors last year but it used to be double the figure and we hope that with efforts that will be taken, we will see more Iranians visiting Malaysia," he said.

Najib said both leaders also talked on the need to cooperate at the international level in various fora to ensure greatest stability and peace in the Muslim world.

"We can belong to different schools of taught, but we have the same desired objectives and goals. So, the closer we work together the better it will be for the Muslim world.

"During the two meetings, we had the opportunity to exchange views and opinion in an open manner on how both countries can elevate relations to a higher level.

"I am confident that his official visit will usher in a new period of enhance and deeper relations between Malaysia and Iran," he said.

Meanwhile, Rouhani said Iran was ready to receive Malaysian companies in various areas, including the oil and gas, and petrochemical sectors, as well as to invest in the country.

"Of course, the private sector of both countries should get familiar with the full capability and capacity that exist in both countries and they should explore it," he said, citing cooperation in the food industry and halal issue. - BERNAMA