By Teh Eng Hock

TEHERAN, MALAYSIA: Malaysia's relationship with Iran was further enhanced with the signing of three memorandums of understanding (MoU), two of which were between the governments and one between private companies.

Foreign Minister Datuk Seri Rais Yatim signed the MoU on science and technology cooperation with Iran's Deputy Science and Technology Minister Vaez Zaden, while Home Minister Datuk Seri Syed Hamid Albar signed the MoU on cooperation in combating the illicit trafficking of drugs with Iran's Interior Home Minister Muksouli.

Both heads of state, Prime Minister Datuk Seri Abdullah Ahmad Badawi and Iran President Mahmoud Ahmadenijad witnessed the signing ceremony at the presidential office.

"Today, the Malaysian and Iranian sides will sign three documents which reflect the commitment of both countries to enter into new areas of cooperation or to upgrade existing ventures.

"Indeed, Malaysia and Iran share common views on many international issues affecting the peace and security of the world.

"We pledge to work closely, especially in multilateral forums for global stability, progress and prosperity," said Abdullah.

On the private sector front, Proton Holdings Bhd managing director Datuk Syed Zainal Abdidin Syed Mohamed Tahir inked a parts supply agreement with its sole Iranian distributor Zagross Khodro, which was represented by managing director Siroos Gholami.

The agreement will pave the way for Zagross to assemble Proton Gen2s through a completely-knocked-down (CKD) arrangement as soon as 2009 at its plant in Borujerd, some 400km from Teheran.