India & Malaysia elevate ties to comprehensive strategic partnership

India and Malaysia have decided to elevate their Enhanced Strategic Partnership to a Comprehensive Strategic Partnership. 

Key-highlights

• The Enhanced Strategic Partnership between the two countries is going to complete its 10 years, and in the last two years, there has been a new momentum and energy in their partnership.
• Bilateral Cooperation:
  • MoUs Signed: Agreements were signed on various fronts, including recruitment and employment of workers, Ayurveda, digital technologies, culture, tourism, public administration, youth and sports, and financial services.
  • Economic and Trade: Bilateral trade reached a record high of USD 19.5 billion. Both sides encouraged further industry cooperation and investments and discussed the review of the ASEAN-India Trade in Goods Agreement (AITIGA).
  • Defence: Both countries committed to expanding defence cooperation, including joint exercises and capacity building.
• Digital and Technological Cooperation: A MoU on Digital Technologies was signed, aiming to establish the Malaysia-India Digital Council and enhance collaboration in areas like 5G, quantum computing, and cybersecurity.
• Education and Capacity Building: Malaysia welcomed the allocation of 100 seats under India’s Technical and Economic Cooperation (ITEC) Programme and the establishment of academic chairs in Ayurveda and Indian Studies.
• Tourism and People-to-People Ties: Both leaders agreed to promote tourism, streamline visa regimes, and enhance connectivity. Malaysia’s designation of 2026 as “Visit Malaysia” was noted.
• Climate Change and Sustainability: Both countries committed to advancing sustainable energy and climate adaptation efforts and welcomed Malaysia’s participation in the International Big Cat Alliance (IBCA).

Significance of Malaysia for India

• Cooperation in multilateral forums: Malaysia is an important partner of India in ASEAN and the Indo-Pacific region. India gives priority to ASEAN centrality. They also collaborate in global forums such as the UN, G20, and the World Trade Organisation (WTO)
• Trade: Bilateral trade between India and Malaysia is already robust, with a volume of around US$20 billion. Malaysia is India’s 16th largest trading partner, while India ranks among the top ten trading partners for Malaysia.
  • Malaysia ranks as the 31st largest investor in India with FDI inflow of $3.3 billion.
• Trade in respective currency: The two countries have also initiated the practice of settling bilateral trade in their respective currencies, the Indian Rupeeand the Malaysian Ringgit, which is seen as a significant step towards reducing dependency on third-party currencies like the US dollar.
• Defence Cooperation: Defence cooperation between India and Malaysia is a key aspect of their bilateral relationship, underscored by a Memorandum of Understanding (MoU) on Defence Cooperation signed in 1993. An amendment to the MoU was signed in July 2023.
  • The 12th edition of the Malaysia-India Defence Cooperation (MIDCOM) was held in September 2023 in New Delhi.
  • Indian Navy ships frequently visit Malaysian ports, fostering naval interaction amidst the context of territorial disputes in the South China Sea involving China.