India and Malaysia recently discussed ways to deepen bilateral ties in several areas of mutual interest including trade, the movement of workers, and the use of their own currencies to settle bilateral transactions. Following a meeting with Malaysian Prime Minister Anwar Ibrahim, India’s Prime Minister Narendra Modi said that ties between India and Malaysia will transform into a Comprehensive Strategic Partnership.
Bilateral trade ties strengthen
Malaysia is home to almost 3 million people of Indian heritage. Prime Minister Modi added that Malaysian investments in India reached over $5 billion last year. Lauding the new ties, Modi said that the two countries have “more potential” to expand the relations.
“We observed that our bilateral trade is making steady progress. Trade between India and Malaysia can now be settled in Indian Rupee and Malaysian Ringgits,” he added.
In addition, Modi highlighted the potential for investments and cooperation in areas of new technology, such as semiconductors, fintech, defense, AI, and quantum. Therefore, both sides agreed to establish a Digital Council and a Start-up Alliance to boost cooperation in digital technology.
Furthermore, the two countries agreed to connect India’s UPI, the instant payment system, and Malaysia’s Paynet.
“India gives priority to ASEAN centrality. India will extend full support to Malaysia’s successful ASEAN Chairmanship in 2025,” he said. The Indian PM also reiterated the country’s commitment to the peaceful resolution of all disputes with Malaysia while stressing the freedom of navigation and overflight in accordance with international laws.
Eight agreements in key sectors
On the sidelines of the meeting, India and Malaysia signed 8 memoranda of understanding in the field of Ayurveda and traditional systems of medicine, digital technologies, culture, arts and heritage, tourism, youth and sports, public administration and governance reforms, and mutual cooperation in the financial sector.
The two countries also agreed on a framework for the welfare of Indian workers going to Malaysia, which sources labor from around 15 countries including India for its palm plantations and other industries. There are already around 140,000 Indian workers in Malaysia, the number highest ever. This total could also rise as India seeks job opportunities for people at home and abroad.
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