Indian Prime Minister Narendra Modi and Malaysian Prime Minister Anwar Ibrahim pledged Sunday to aggressively expand bilateral trade and launch new joint ventures in semiconductors, defense, and digital technologies.
The high-level meeting in Putrajaya marks Modi’s first visit to Malaysia since the two nations upgraded their relationship to a Comprehensive Strategic Partnership in late 2024.
Central to the discussions was a new commitment to integrate India’s growing tech sector with Malaysia’s established semiconductor ecosystem, which currently accounts for roughly 13% of global testing and packaging.
"We are moving beyond routine diplomacy to a partnership of speed and depth," Modi told reporters. The leaders oversaw the exchange of 11 agreements spanning disaster management, UN peacekeeping, and vocational training.
To reduce dependence on the U.S. dollar, the two leaders fast-tracked a plan for local-currency settlement, allowing businesses to use the ringgit and rupee for cross-border transactions. Prime Minister Anwar expressed optimism that bilateral trade would soon eclipse the $18.6 billion recorded in 2025.
"This is a vital, strategic shift," Anwar said. "We are executing these commitments in a speedy manner to ensure our growth engines remain linked."
Malaysia also confirmed its support for India’s plan to open a new consulate in the state of Sabah on Borneo island to facilitate increasing maritime and commercial ties.
