AUCKLAND, New Zealand, Oct. 28 (Xinhua) -- The New Zealand dairy products giant Fonterra, has spent 9.8 million NZ dollars (7.3 million U.S. dollars) in upgrading its plant in Kuala Lumpur as a sign of its confidence in the Malaysian market after signing a free-trade agreement with the country at the weekend.

    During their visit to Malaysia, New Zealand Prime Minister JohnKey and Fonterra chairman Henry van der Heyden, unveiled a plaque to commemorate the expansion, which will increase the production capacity for cultured products in Malaysia.

    With a 64 percent market share, Fonterra Brands is the largest dairy supplier in Malaysia. Fernleaf CalciYum is now the number one yogurt brand in Malaysia.

    Malaysia relies upon imports to meet over 95 percent of domestic dairy consumption as its climate does not suit to dairying.

    Mark Wilson, regional manager director for Fonterra Asia/Africa and Middle East, said earlier that the cultured dairy market in Malaysia was expected to grow in double digits over the next couple of years,

    Fonterra now regards its operations in Malaysia as a vital test market for its products in Southeast Asia.