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Prime Minister’s Office (PMO) | Ministry of External Affairs | Ministry of Commerce and Industry | Ministry of Electronics and Information Technology (MeitY) | Ministry of Health and Family Welfare | Ministry of Defence
India and Malaysia have reaffirmed their commitment to expanding the Comprehensive Strategic Partnership (CSP) established in 2024. During Prime Minister Narendra Modi’s official visit to Malaysia, the leaders held productive discussions covering the full spectrum of relations, ranging from political engagement and defense to health, education, and digital cooperation. This visit marks a strategic milestone, underscored by mutual support in multilateral fora, with Malaysia supporting India’s permanent membership in a reformed UNSC and India supporting Malaysia’s role as a BRICS Partner Country.
Strategic Pillars of the India-Malaysia Comprehensive Partnership The joint outcomes identify core strategic pillars driving the future of the bilateral relationship:
Trade, Investment, and Food Security: The leaders emphasized the importance of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) and called for the early completion of the ASEAN-India Trade in Goods Agreement (AITIGA) review. Cooperation is being deepened in food security, particularly in stable staple commodity supply chains and sustainable palm oil cultivation.
Digital, Financial, and Energy Cooperation: A key achievement is the formalisation of the Malaysia-India Digital Council (MIDC) to advance DPI, fintech, and AI. Both leaders welcomed the UPI and PayNet Malaysia payment linkage and emphasized the vast potential for collaboration in Green Hydrogen and solar energy through the International Solar Alliance (ISA).
Defence, Security, and Semiconductors: The partnership includes a Strategic Affairs Working Group (SAWG) and a dedicated Su-30 Forum. Both nations are deepening semiconductor value chain synergy through partnerships between IIT-Madras and the Advanced Semiconductor Academy of Malaysia.
Health, Education, and People-to-People Ties: Cooperation extends to Traditional Indian Medicine (TIM), Ayurveda, and affordable healthcare. Education is prioritized through the Thiruvalluvar Chair of Indian Studies at Universiti Malaya and enhanced TVET (Technical and Vocational Education and Training) to develop a skilled workforce.
Operational and Institutional Milestones The analysis grounds these pillars in specific institutional commitments:
Diplomatic Expansion: India will open its first Consulate in Malaysia to strengthen commercial and people-to-people ties.
Currency Settlement: Both sides encouraged industries to facilitate trade invoicing and settlement in local currencies (INR and MYR).
Environmental Stewardship: Malaysia ratified the Framework Agreement on the International Big Cats Alliance (IBCA).
Regional Cooperation: The leaders reaffirmed commitment to a free and open Indo-Pacific and respected freedom of navigation under UNCLOS 1982.
What is the “Malaysia-India Digital Council” (MIDC) in the context of bilateral cooperation? The MIDC is a strategic mechanism established to serve as the primary platform for digital cooperation and transformation between India and Malaysia. It is designed to foster innovation in fintech, cybersecurity, and Artificial Intelligence by leveraging India’s expertise in Digital Public Infrastructure (DPI) to support Malaysia’s digital agenda. By linking regulatory bodies and private sectors, the MIDC aims to create a seamless digital ecosystem that supports low-cost financial services, secure e-governance, and resilient technological supply chains.
Policy Relevance
The official visit represents a transition toward outcome-based strategic statecraft and comprehensive technological and economic interdependence. By institutionalizing digital councils, security dialogues, and semiconductor academies, the Prime Minister’s Office is securing India’s role as a leading digital and industrial provider while strengthening regional stability.
Strategic Impact:
Democratizing Cross-Border Finance: The UPI-PayNet linkage significantly lowers the cost of remittances, supporting MSMEs and the vibrant Indian diaspora in Malaysia.
Securing Technological Sovereignty: Partnerships in semiconductors and AI ensure that both nations build resilient and competitive ecosystems in high-value sectors.
Mainstreaming Traditional Medicine: Deploying Traditional Indian Medicine experts to Malaysian hospitals creates an integrated model of care, expanding the global reach of Indian healthcare expertise.
Strengthening Counter-Terrorism: Co-chairing the ADMM-Plus Counter-Terrorism Working Group ensures coordinated regional responses to violent extremism and cross-border terrorism.
Relevant Question for Policy Stakeholders: How can the Malaysia-India Digital Council be utilized to create a ‘Bilateral Startup Sandbox’ that allows Indian Fintech and Health-tech startups to test products in the Malaysian market under harmonized regulatory guidelines by 2027?
Follow the full news here: India-Malaysia Joint Statement | PIB