SYLLABUS

GS-2: Bilateral, regional, and global groupings and agreements involving India and/or affecting India’s interests.

Context: At the invitation of Malaysian Prime Minister Anwar Ibrahim, Prime Minister Narendra Modi undertook an official visit to Malaysia.

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• The visit reaffirmed the shared commitment of both leaders to consolidate and expand the India–Malaysia Comprehensive Strategic Partnership (CSP), which was elevated in August 2024.

• The leaders witnessed the exchange of 11 agreements/MoUs, aimed at strengthening institutional cooperation across multiple sectors.

• The visit helped reinforce momentum in bilateral ties after some diplomatic unease in 2025 and reaffirmed India’s strong commitment to ASEAN centrality and the Indo-Pacific.

Key Highlights of Visit

• 11 agreements/MoUs signed, covering semiconductors, disaster management, UN peacekeeping, healthcare, national security, vocational education (TVET), social security for Indian workers, counter-corruption, and audio-visual co-production.

• Strong and explicit condemnation of terrorism, including cross-border terrorism, with both leaders stressing “no double standards, no compromise” and pledging cooperation at the UN and FATF.

• Agreement to deepen semiconductor cooperation, building on collaboration between IIT-Madras Global and Malaysia’s Advanced Semiconductor Academy, and industry bodies from both sides.

• Renewed push for local-currency settlement in trade using the Indian Rupee and Malaysian Ringgit, alongside payment linkages between NPCI International Limited and PayNet Malaysia.

• Commitment to expand bilateral trade beyond $18.6 billion, enhance investments, and strengthen supply chains in food, energy, and critical technologies.

• Emphasis on Indo-Pacific peace and stability, freedom of navigation, and dispute resolution in accordance with UNCLOS 1982.

• Support for ASEAN centrality, early completion of the ASEAN–India Trade in Goods Agreement (AITIGA) review, and closer coordination in multilateral forums.

India–Malaysia Bilateral Relations

Significance of Malaysia for India

• Strategic Counterweight to China in Southeast Asia: Malaysia occupies a critical geopolitical space amid China’s expanding economic and maritime footprint. 

• Stronger ties with Malaysia allow India to balance China’s influence in ASEAN and reinforce a multipolar Indo-Pacific order.

• Maritime & Indo-Pacific Security Anchor: Located astride the Strait of Malacca, Malaysia is vital to freedom of navigation and regional sea-lane security. 

• Cooperation with Malaysia advances India’s SAGAR/MAHASAGAR vision, supports UNCLOS, and counters coercive maritime behavior without escalation.

• Pillar of Act East Policy & ASEAN Centrality: As a key ASEAN member, Malaysia strengthens India’s Act East engagement and helps preserve ASEAN Centrality against unilateral, China-centric regional architectures—keeping the Indo-Pacific inclusive and rules-based.

• China-Plus-One Supply Chain Diversification: Malaysia’s strength in electronics and semiconductor back-end manufacturing complements India’s design and fabrication ambitions, enabling resilient, non-China supply chains and reducing exposure to economic coercion.

Source :-
PIB
MEA
Business Standard