Key touches down in Malaysia

Prime Minister John Key has arrived in Malaysia on the next leg of his tour of Asia.

Key flew into Kuala Lumpur last night aboard a commercial flight from Bangkok, Thailand, where he attended the East Asia Summit.

At Kuala Lumpur International Airport Key was met by a full guard of honour in the terminal building before being taken by motorcade to his hotel in the central city.

Today Key will open new offices for Datacom following the company's recent expansion in Malaysia and a new production line of chilled yoghurt and other consumer products at Fonterra's plant in Kuala Lumpur.

Later this afternoon he will pay a call on Malaysian Prime Minister Najib Razak before attending the signing of a Free Trade Agreement with Malaysia tonight with Trade Minister Tim Groser.

Details of the agreement are under wraps until the signing but Malaysia is New Zealand's eighth-largest market and officials hope to use the detail as a further step in New Zealand's economic integration with Asia.

The deal comes after a successful round of talks at the East Asia Summit for New Zealand, which managed to secure agreement from the 15 other leaders at the EAS for further work towards a pan-Asia free trade area.

Some 70 business leaders have accompanied Key to Kuala Lumpur to attend the FTA signing and a conference on doing business with Malaysia.