INDIA–MALAYSIA RELATIONS

NEWS: India and Malaysia signed multiple agreements (around 11 MoUs/documents) during the Prime Minister’s visit to Kuala Lumpur to expand bilateral ties.

India–Malaysia Relations

• Diplomatic relations since 1957.
• Malaysia: A key partner in Southeast Asia and a member of ASEAN.
• The relationship is “special”, rooted in: Historical links, Indian diaspora in Malaysia, maritime proximity in the Indo-Pacific

Key Outcomes of the Visit

• Agreement to promote bilateral trade in local currencies → Indian Rupee (INR) and Malaysian Ringgit (MYR).
  • Reduce dependence on the US Dollar, Lower transaction costs
• Expansion of cooperation in: Defence ties, counter-terrorism, intelligence sharing, maritime security
  • Important for: Stability in the Indo-Pacific, securing Sea Lines of Communication (SLOCs)
• Framework pact: Semiconductor sector, AI and digital technologies
  • Reducing global supply-chain vulnerabilities, supporting India’s semiconductor mission
• Malaysia expressed support for India’s permanent membership in a reformed United Nations Security Council.
  • Reiterated commitment to ASEAN centrality
  • Stressed peace and stability in the Indo-Pacific
  • Called for reform of global institutions
• Establish an Indian Consulate General in Malaysia: Consular services, diaspora engagement

Strategic Significance for India

• Strengthens India’s Act East Policy
• Deepens engagement with ASEAN
• Enhances India’s role as a net security provider in the IndoPacific
• Balances regional geopolitics amid global instability