MALAYSIA has made significant strides in deepening investment and trade relations with India, with projects worth billions of ringgit now in various stages of implementation following the Prime Minister’s visit to India in 2024.
In response to a parliamentary question, Deputy Minister of Investment, Trade and Industry Liew Chin Tong highlighted that the visit catalysed interest from Indian investors in high-technology sectors, value-added manufacturing, and advanced services.
“Following a series of high-level meetings and business-matching sessions, investments valued at RM4.5 billion are currently under discussion or being executed,” he said. Two of three key projects have already received approval, focusing on pharmaceutical and chemical industries.
Historical data from the Malaysian Investment Development Authority (MIDA) shows that from 1980 to September 2025, Indian participation in Malaysian manufacturing projects totalled RM4.88 billion across 176 initiatives, covering pharmaceuticals, medical devices, chemicals, metal fabrication, oleochemicals, and machinery and equipment.
These investments have generated more than 16,000 new jobs for Malaysians.
Specifically, in 2024, MIDA approved ten Indian-invested projects valued at RM298.45 million, targeting strategic sectors such as petrochemicals, chemicals, and machinery in line with the National Investment and Manufacturing Policy (NIMP 2030).
In the first nine months of 2025, five additional projects worth RM23.85 million were approved, projected to create over 270 new employment opportunities.
The deputy minister also noted that a dedicated Malaysia Investment and Trade Mission to India in 2025 aimed to sustain economic cooperation and boost investor confidence.
“The mission included strategic roundtable meetings with industry leaders and discussions with the Federation of Indian Chambers of Commerce and Industry (FICCI) to explore expanded trade and investment opportunities,” he said.
Looking ahead, Malaysia is negotiating a Memorandum of Cooperation with India in the semiconductor sector to strengthen a resilient and comprehensive semiconductor value chain.
Concurrently, the Advanced Semiconductor Academy Malaysia (ASEM) has formalised a strategic collaboration with the Indian Institute of Technology Madras (IIT Madras Global) to pursue high-impact initiatives that will consolidate Malaysia’s position within the global technology ecosystem.
These developments underscore the growing economic partnership between Malaysia and India, with tangible benefits for high-value sectors, job creation, and technological advancement, reinforcing Malaysia’s ambition to be a competitive hub for innovation and manufacturing in the region. - December 10, 2025
