Putrajaya, 8 February 2026 – Malaysia and India have reaffirmed their commitment to deepen economic, technological and strategic cooperation, with Prime Minister Datuk Seri Anwar Ibrahim and Indian Prime Minister Narendra Modi overseeing the exchange of multiple agreements aimed at accelerating bilateral trade and strengthening regional collaboration.
Modi’s two-day official visit marks a significant milestone in advancing ties between the two nations, following their elevation to a comprehensive strategic partnership in August 2024.
Semiconductor, Defence and Strategic Cooperation in Focus
Both leaders pledged to expand collaboration across critical sectors, including semiconductors, defence, disaster management and peacekeeping, reflecting the growing importance of technological resilience and security cooperation amid shifting global supply chains.
A total of 11 cooperation agreements were exchanged during the visit, highlighting the breadth of engagement between the two countries. These agreements signal increasing alignment in emerging industries such as advanced electronics, alongside traditional areas like trade and investment.
Anwar emphasised the comprehensive nature of the partnership, noting that both governments are committed to accelerating implementation across multiple sectors, including healthcare, tourism, food security and economic development.
Bilateral Trade Expected to Surpass US$18.6 Billion
Malaysia and India are also intensifying efforts to promote local currency settlement for cross-border trade, a move aimed at reducing reliance on global reserve currencies and strengthening financial cooperation.
Anwar expressed confidence that bilateral trade would exceed last year’s US$18.6 billion, underscoring the strong economic momentum and expanding commercial engagement between the two countries.
In addition, Malaysia pledged support for India’s proposal to open a consulate in Sabah, reflecting growing diplomatic engagement and strategic coordination in Southeast Asia.
Strategic Implications for ASEAN and Regional Economic Integration
The strengthened partnership between Malaysia and India comes at a time when Asia’s economic landscape is being reshaped by geopolitical realignments and supply chain diversification.
India’s expanding role in global manufacturing and digital technology, combined with Malaysia’s strategic position as a regional semiconductor and trade hub, positions both countries to benefit from deeper industrial integration.
For investors and policymakers, enhanced cooperation between the two nations could unlock new opportunities in semiconductor manufacturing, defence technology, infrastructure investment and cross-border digital economy initiatives.
As ASEAN continues to emerge as a global growth engine, Malaysia-India collaboration is expected to play an increasingly important role in shaping Asia’s economic and technological future.
