UPDATE 1-Bursa Malaysia, Dubai exchange sign derivatives pact

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KUALA LUMPUR Jan 15 (Reuters) - Stock exchange operator Bursa Malaysia signed a pact with the Dubai Gold and Commodities Exchange (DGCX) to jointly develop derivatives markets in both Malaysia and the United Arab Emirates, Bursa said on Tuesday.

Bursa (BMYS.KL) said it and the DGCX will have a platform to share knowledge and explore potential strategic products to mutually benefit both their capital markets.

"This (pact) provides a platform for both parties to develop our strengths and product offerings in respect to palm oil, gold, crude oil, plastics and such other commodities," Bursa Head of Global Markets Raghbir Singh Bhart said at the signing in Dubai.

Commodities will attract more investors in 2008, extending a trend that has boosted investment in this asset class by more than $160 billion since 2001, Barclays Capital said on Jan. 11.

Commodity assets under management reached $175 billion in 2007, a rise of $41 billion over the year -- second only to the record increase of $48 billion in 2006, Barclays said.

In Kuala Lumpur, Malaysian crude palm oil futures are hitting new peaks almost daily, boosted by across-the-board rallies in commodity markets as concerns mount over tight supplies.

Bursa shares climed about 75 percent last year.