Britain's Prime Minister David Cameron (L) gestures during a question and answer session with Malaysia's Prime Minister Najib Razak (R) during their visit to the University of Nottingham in Semenyih, outside Kuala Lumpur, April 12, 2012. Cameron arrived for a two-day official visit to hold talks with the Malaysian leadership on bilateral and international issues.

Britain and Malaysia agreed on Thursday to double the bilateral trade to 8 billion pounds (12.74 billion U.S. dollars) by 2016 and expand education and defense links during British Prime Minister David Cameron's official visit in Malaysia.

"We both agreed that the opportunity for us to enhance bilateral trade is simply enormous and both our economic ministers have agreed we should try to double our bilateral trade by 2016. It's an ambitious goal but we will try to work towards that," Najib told a joint press conference after meeting Cameron at his residence in the federal administrative center of Putrajaya.

"In trade and investment, our ambition is simple. It is to do a step change in business and investment, that is why I came with a strong delegation," Cameron said.

Cameron praised Najib for his commitment to global moderation and the political reforms he introduced in his country.

The Malaysian government has recently abolished the controversial Internal Security Act -- a decades-old law that allows for detention without trial, and is replacing it with a less harsh legislation.

Both agreed to intensify student exchanges and educational links as well as promote bilateral collaboration in tertiary institution.

Several British universities including the Newcastle University and Marlborough college have campuses in Malaysia while an estimated 13,000 Malaysian students study in Britain every year.

On defense, both premiers pledged their commitment to the Five- Power Defense Arrangements, a multilateral agreement signed in 1971 that places the responsibility on member countries to protect Peninsular Malaysia and Singapore in cases of external aggression or threat of attack.

Najib said there would be "opportunities for Britain to take part in the future procurement prospect for Malaysia."

Cameron came to Malaysia on a two-day visit with his 83-member delegation.

He was the first British prime minister in nearly two decades to visit Malaysia.

The visit was the second leg of his Asian tour which also included Japan, Indonesia, Singapore and Myanmar to strengthen trade ties affected by the Eurozone financial crisis.

Britain was Malaysia's fourth largest trading partner in Europe with total trade in goods valued at 15 billion ringgit (4.8 billion U.S. dollars) in 2011 from 13 billion ringgit (4.23 billion U.S. dollars) in 2010.

But Britain only accounts for one percent of Malaysia's total imports in 2011 and Cameron said he is determined to change that.

"My message today is very simple: the era of benign neglect is over, Britain is back, back to do business with Malaysia and back to build our partnership on vital global issues... it is just the start of a much refreshed and invigorated relationship between the two of us," Cameron said.

Both Najib and Cameron later in the day spoke to students at the Nottingham University's branch school south of Kuala Lumpur on a host of topics that touched on moderation, terrorism and the Middle East situation.