MALAYSIA and India have agreed to intensify cooperation across key strategic sectors, including the digital economy, semiconductors and local currency trade settlement, as both countries seek to elevate bilateral ties amid growing economic engagement.
Indian Prime Minister Narendra Modi said cooperation between the two countries had gained strong momentum under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, particularly in both traditional and emerging sectors.
“My friend, Anwar has played an important role in this. Our cooperation in energy, infrastructure and manufacturing has strengthened, while collaboration in the digital economy, biotechnology and information technology has driven higher joint investments,” Modi said at a joint press conference with Anwar here today.
Modi, who is on a two-day official visit to Malaysia from Feb 7, said tourism and people-to-people exchanges between the two countries continued to expand, with both sides agreeing to further strengthen collaboration in these areas.
Separately, Anwar said Malaysia and India had agreed to fast-track the use of the ringgit and rupee in bilateral trade and investment, with Bank Negara Malaysia and the Reserve Bank of India continuing close cooperation to promote local currency settlement.
“Likewise, this applies to cooperation in digital connectivity, energy and semiconductors,” Anwar said at the same press conference.
Anwar, who is also the Finance Minister, said bilateral trade between Malaysia and India was expected to surpass the US$18.59 billion recorded last year.
In 2025, Malaysia’s exports to India stood at RM52.3 billion (US$12.24 billion), while imports amounted to RM27.19 billion (US$6.35 billion).
Malaysia’s key exports included palm oil and palm oil-based agricultural products as well as electrical and electronic goods, while imports were largely agricultural products, petroleum and chemicals.
He said Malaysia, within the ASEAN context, stood to benefit significantly from deeper engagement with India, describing the relationship as “very strategic and critical”.
“It is very strategic and critical to advance and enhance relations between India and Malaysia. Both countries have shared longstanding ties since 1957, which were elevated to a Comprehensive Strategic Partnership in 2024,” Anwar said.
He added that deep historical links, strong people-to-people connections and steadily expanding economic cooperation would continue to strengthen collaboration across all areas, including trade and investment, semiconductors, digital economy, local currency trade, connectivity, energy, agriculture, food security, defence, education and security.
Anwar also said both countries had agreed to accelerate the review and optimisation of the Malaysia-India Comprehensive Economic Cooperation Agreement, while strengthening cooperation in high-value sectors such as semiconductors, digital trade, green technology and advanced manufacturing.
“We also welcome the establishment of the Malaysia-India Digital Council, and discussions are currently ongoing on bilateral payment linkages between NPCI International Payments Ltd and PayNet Malaysia,” he said.
The leaders said the agreements and initiatives underscored a shared commitment to positioning Malaysia-India relations for long-term growth in future-oriented sectors. - February 8, 2026
