India-Malaysia strengthens cooperation through Comprehensive Strategic Partnership, ink key pacts

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The Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim arrived in India on 20 August 2024 to Embark on State Visit in response the kind invitation extended to him by the Prime Minister of India, Shri Narendra Modi. This was the Malaysian Prime Minister’s first visit to the South Asian region, and the first meeting between the two Prime Ministers so as to ascertain the current status of the strengthened strategic relations.

The diverse topics under discussion encompassed many aspects that define the India-Malaysia relations as being rich in facets and layers. He was accompanied by a high level delegation.

India-Malaysia relations

India has always had a strong connection with Malaysia, where at present about 7% of the total population or Malaysian crowd in there has Indian origins which does play some important role in shaping India’s foreign policy to a certain extent. Malaysia is also an important component of India’s Act East policy and holds immense importance as far as India’s maritime connectivity plans are concerned. At the current stage of its development, India has established a successful multifaceted political, financial and socio-cultural cooperation with Malaysia.

Trade is one of the crucial areas where the two countries engage in both imports and export trade in products like palm oil, electronics, Information technology and so on. Besides, Malaysia houses a very significant number of Indian-origin population which enhances cultural ties between the two countries.

However, the relation has not been without some hitches, especially in political and diplomatic aspects. There have been occasional strains in relations due to Malaysia’s stand on the issue of Kashmir and Indian policies in the South East Asia region. Nevertheless, both countries remain committed to their bilateral relationship and negotiations on the matters in order to strengthen the cooperation. Thus, the partnership continues to be a critical part of Indian’s Act East Policy and, more broadly, its diplomacy with Southeast Asia.

PM Modi with his Malaysian counterpart Mr. Anwar Ibrahim

Recent meeting between the Indian and the Malaysian PM

In the meeting, the two Prime Ministers as encouraged by the rising bilateral investments, called for investments and cooperation in various sectors of the two countries. The two Prime Ministers were satisfied with the status of bilateral trade and stated that trade is one of the key levers of the two countries’ ESP, and welcomed that bilateral trade has risen up to the level of US $19.5 billion. They called upon industries on both sides to work towards deepening trade relations for the development of the two countries in the interest of all.

The two parties committed to improving and accelerating the ratification process of ASEAN-India Trade in Goods Agreement (AITIGA) with the view toward making it more efficient, convenient, straightforward, and beneficial to traders in order to strive to reach a significant result in 2025 and promote the supply chains connecting India with ASEAN members. With regards to the importance of realizing their current economic agenda, both Prime Ministers appreciated the conversion of discussions about holding the 2nd Joint Committee Meeting of Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA).

The two Prime Ministers recalled that defence and security cooperation has remained steady and strong as one of the supporting pillars of the Enhance Strategic Partnership. It was agreed by both sides to raise the level of defence cooperation through exchange and dialogue, exercise and capacity building cooperation. Both sides reiterated their commitment to further deepen cooperation in the defence industry as well as the field of defence research and development.

The two Prime Ministers declared that terrorism in all its forms and manifestations is criminal and unjustified and both of them pointed out their intention to urge states to refrain from terrorism. They both agreed that no country should allow itself to become a sanctuary for terrorists and pledged to cooperate to ensure that perpetrators of terrorism are brought to justice quickly and efficiently as permitted by domestic laws and international treaties. They also affirmed each other in acknowledging and proactively combat the nexus between terrorism and transnational organized crime. The two countries committed themselves to enhance collaboration in this regard, involving exchange of information and experience on measures against terrorism and other blatant and non-conventional threats.

Outcomes of the meeting

Two heads signed several bilateral MoUs earlier envisaging cooperation in Recruitment, Employment and Repatriation of Workers; Ayurveda and other Traditional System of Indian Medicines; Digital Technologies; Culture, Arts and Heritage; Tourism; Public Administration and Governance Reforms; Youth and Sports; and Financial Services between Labuan Financial Services Authority (LFSA) and International Financial Services Centres Authority, India (IFSCA).

Under the digital cooperation, both Prime Ministers appreciated the signing of the MoU on Digital Technologies and urged for the early meeting of Malaysia-India Digital Council that can chart out the course of cooperation in the digital sphere and promote collaboration in areas such as Digital Public Platforms, B2B digital partnership, digital capacity building, cyber security, new generation technologies including 5G, Quantum Computing, Cloud Computing, IO, and other pertinent aspects between two countries.

India also appreciated the Malaysia’s decision of becoming the founder member of International Big Cat Alliance (IBCA). The two Prime Ministers discussed the need for the speedy conclusion of the Framework Agreement of the IBCA.

The two Prime Ministers reaffirmed the need to expand cooperation in the field of tourism, to exchange experiences in the framework of sustainable tourism, and to discuss prospects for the development of tourist traffic between the two countries. India observed that 2026 was declared as the Visit Malaysia year and that Malaysia has opened its doors for more Indian tourists in the year. The Prime Ministers were aware that young people are crucial in the development of their respective countries and hence they agreed to encourage interchangeability between youths of the two countries.

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