India, Malaysia ink key pact, expand ties; PM Modi holds bilateral talks with Anwar Ibrahim

Prime Minister Narendra Modi held bilateral talks with his Malaysian counterpart on Tuesday with a focus on expanding cooperation in several sectors. The two countries have signed at least eight pacts amid PM Anwar Ibrahim's visit — including an agreement on promoting recruitment of Indian workers in Malaysia and protection of their interests. The two leaders also stressed the need to complete review of the free trade agreement between India and the ASEAN ‘in a timely manner’.

“Today we have decided to elevate our partnership to a ‘Comprehensive Strategic Partnership’. We believe that there is still a lot of potential in economic cooperation. The bilateral trade and investment should be expanded. We should enhance our mutual cooperation in areas of new technology, such as semiconductors, Fintech, defense industry, AI and quantum. We have emphasized upon stepping up the review of the Comprehensive Economic Cooperation Agreement between India and Malaysia. It has been decided to establish a Digital Council and to create a Start-up Alliance for cooperation in digital technology. Work will also be done on connecting India's UPI and Malaysia's Paynet,” read an excerpt from the press statement released by PM Modi.

The talks are viewed as a bid to ‘reset’ ties that came under some strain during the prime ministership of Mahathir Mohamad. The two countries also discussed “new possibilities of mutual cooperation in the defense sector” and stressed the need for an unanimous fight against ‘terrorism and extremism’.

“The President expressed satisfaction that both sides have decided to upgrade their relationship to a Comprehensive Strategic Partnership, and are working towards an action-oriented roadmap for its implementation across various sectors of cooperation,” added President Droupadi Murmu after a meeting with Ibrahim.

The President also reiterated India's commitment towards shared goals of a “peaceful and prosperous Indo-Pacific region” as Malaysia assumes the ASEAN chair in 2025. Murmu noted that the other country is a key partner for India within the Association of Southeast Asian Nations and an important country in the Act East Policy and in the Indo-Pacific vision. 

Meanwhile Ministry of External Affairs official Jaideep Mazumdar said that Malaysia supported India's bid to become a permanent member in a reformed UN Security Council. He also explained during a press briefing that Kuala Lumpur had agreed to consider India as a source for procuring various defence platforms and hardware.

(With inputs from agencies)