India and Malaysia sign pacts to expand ties

India and Malaysia sign pacts to expand ties

India and Malaysia on Sunday vowed to expand their ties in the high-priority sectors of trade and investment, defence, energy, advanced manufacturing and semiconductors with Prime Minister Narendra Modi asserting that both sides are committed to peace and stability in the Indo-Pacific.

Following his wide-ranging talks with Malaysian Prime Minister Anwar Ibrahim, Mr. Modi reiterated India’s position on combating terrorism as he said: “Our message on terrorism is clear; no double standard, no compromise.” The two sides inked a total of 11 agreements and documents to expand cooperation in a range of key areas, including a framework pact for deeper engagement in the semiconductor sector.

Mr. Modi, who arrived in Kuala Lumpur on Saturday, and Mr. Ibrahim appreciated efforts to promote the usage of local currencies — the Indian rupee and Malaysian ringgit — for trade settlement.

“We will pave the way for economic transformation through strategic trust,” Mr. Modi said, describing the India-Malaysia relationship as “special”.

During the visit, Mr. Modi met Malaysia’s Indian-origin Ministers, MPs, and Senators and interacted with four leading industry leaders.

“We are maritime neighbours. For centuries, our peoples have had deep and cordial ties,” he said in his media statement. Mr. Modi also announced India’s decision to establish an Indian Consulate General in Malaysia. In his remarks, Mr. Ibrahim noted India’s economic growth and said his country would benefit immensely if it could secure more ways and opportunities to collaborate with New Delhi.

“It [India’s economic growth] is on spectacular rise in the international trade scene,” he said, describing the decision to use local currencies for bilateral trade as “remarkable”.

In the talks, Malaysia extended its support for India’s permanent membership in a reformed United Nations Security Council (UNSC).

Elaborating on engagement in the security domain, Mr. Modi said cooperation in counter-terrorism, intelligence sharing, and maritime security will be strengthened, adding that both sides will further expand defence ties.

“Along with AI and digital technologies, we will advance partnerships in semiconductors, health, and food security,” he said, noting that the discussions at the CEO Forum opened new opportunities for trade and investment.

The Prime Minister touched upon India’s position on Indo-Pacific and its steadfast views on the 10-nation Association of Southeast Asian Nations’s (ASEAN) centrality in the region. “The Indo-Pacific region is emerging as the world’s growth engine. We, along with ASEAN, are committed to development, peace, and stability throughout the Indo-Pacific region,” he said.

“With the support of friendly countries like Malaysia, India will further expand its relations with ASEAN. We agree that the review of the ASEAN-India Trade Agreement, ITIGA, should be completed expeditiously,” he added.

Mr. Modi said he and Mr. Ibrahim also had a “meaningful discussion” on regional and global issues. “In this environment of global instability, the growing friendship between India and Malaysia is of vital importance to both countries.”

“We share the view that reform of global institutions is essential to address today’s challenges. We will continue to support all efforts for peace. And our message on terrorism is clear: No double standard; no compromise,” he added. “We appreciate your commitment to India-Malaysia relations. Let us together realise your dream of a prosperous Malaysia and our resolve for a developed India,” he said.