India and Malaysia to Strengthen Bilateral Trade and Defence Ties

Indian Prime Minister Narendra Modi and Malaysian Prime Minister Anwar Ibrahim have reaffirmed their commitment to strengthening trade ties between the two countries. The leaders met on Sunday in Putrajaya, Malaysia’s administrative capital, where they signed 11 cooperation agreements covering various sectors.

The agreements include disaster management, peacekeeping, and promoting local-currency settlement for cross-border activities. India and Malaysia aim to increase bilateral trade, with Anwar expressing hope that it will surpass last year’s $18.6 billion.

Modi is on a two-day visit to Malaysia, his first since the countries elevated ties to a comprehensive strategic partnership in August 2024. The partnership covers areas such as defence, healthcare, food security, and tourism.

During their meeting, Anwar and Modi witnessed the exchange of cooperation agreements, including those related to semiconductor technology. India and Malaysia plan to deepen their semiconductor partnership, with both countries having a strong interest in collaborating on research and development and building manufacturing and testing plants.

Malaysia is ranked sixth globally in semiconductor exports, accounting for 25% of its gross domestic product. The Indian Ministry of External Affairs stated that the country has a “very strong semiconductor ecosystem” with over 30-40 years of experience in the field.

Source: Al Jazeera