Malaysia

Malaysia and India deepen strategic ties as bilateral trade surges to US18.59 billion

Expanding cooperation in AI, digital technology, food security and education reflects the growing strength of Malaysia-India relations under their Comprehensive Strategic Partnership

Updated 1 month ago · Published on 18 May 2026 5:58PM

Malaysia and India deepen strategic ties as bilateral trade surges to US18.59 billion
Economic engagement between the two countries had continued to expand steadily despite global geopolitical uncertainty and evolving international trade dynamics - May 18, 2026

MALAYSIA and India are moving to further strengthen their expanding strategic partnership as both nations accelerate cooperation in trade, digital technology, artificial intelligence and regional economic development amid an increasingly complex global environment.

Prime Minister Datuk Seri Anwar Ibrahim said the growing relationship between the two countries now reflected a Comprehensive Strategic Partnership built upon deeper economic collaboration, technological integration and stronger people-to-people ties.

The matter was discussed during a farewell courtesy call by Indian High Commissioner to Malaysia B.N. Reddy, who is expected to conclude his diplomatic service in the country soon.

According to Anwar, the meeting provided an opportunity for both sides to review the rapid progress achieved in bilateral relations and identify new areas of strategic cooperation as Malaysia and India continue strengthening regional connectivity and economic resilience.

“It reflects our shared commitment to expanding cooperation across various sectors including trade, digital technology, artificial intelligence (AI), food security, education and people-to-people relations,” he said in a statement posted on social media.

Anwar said bilateral trade between Malaysia and India reached USD18.59 billion in 2025, reinforcing India’s position as Malaysia’s largest trading partner in South Asia.

The prime minister noted that economic engagement between the two countries had continued to expand steadily despite global geopolitical uncertainty and evolving international trade dynamics.

He also highlighted the growing momentum in digital and emerging technology collaboration, citing the recent organisation of the inaugural Malaysia–India Digital Council (MIDC) meeting and the Malaysia–India AI Conclave held in Kuala Lumpur.

According to Anwar, both initiatives demonstrated the increasing importance of technology-driven partnerships in shaping future economic growth and regional competitiveness.

“Malaysia will continue strengthening this close relationship for mutual benefit, regional stability and more inclusive prosperity for both countries,” he said.

The strengthening of Malaysia-India relations comes as both governments seek to position themselves more prominently within the rapidly evolving digital economy while enhancing cooperation in strategic sectors such as semiconductor development, AI infrastructure, food supply resilience and innovation-driven investment.

Analysts view the growing partnership as increasingly significant for Malaysia’s broader regional economic strategy, particularly as global supply chains continue shifting towards Asia amid heightened geopolitical competition and technological transformation. - May 18, 2026

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