Modi and Anwar Reset India-Malaysia Relations, Boost Trade
Politics

Modi and Anwar Reset India-Malaysia Relations, Boost Trade

PM Modi and Malaysian PM Anwar Ibrahim are resetting bilateral relations years after ties soured over India’s 2019 decision to scrap Jammu and Kashmir’s special status. Ibrahim’s visit to India marks his first since becoming Malaysia’s Prime Minister in 2022.

During their meeting, the leaders agreed to upgrade their ties to a Comprehensive Strategic Partnership, focusing on cooperation in areas such as semiconductors, financial technology, and defence production. This announcement is significant as Anwar has recently moved closer to China, a country involved in a border dispute with India.

Relations between India and Malaysia deteriorated in 2019 after Malaysia’s then-Prime Minister Mahathir Mohamad criticised India’s Kashmir policy. Now, the two nations seek to expand economic ties and bolster defence and security cooperation.

PM further emphasised Malaysia’s $5 billion investment in India over the last year and the importance of continued collaboration in developing areas such as AI, quantum technology, and fintech. The leaders inked new agreements, including digital technologies, tourism, and traditional medicine. Anwar emphasised the significance of strengthening partnerships in areas such as building, agriculture, and military cooperation to protect borders.

Bilateral trade is substantial, totalling $20 billion, with major commercial exchanges between the two countries.