The Malaysian PM’s visit marked his first to India since assuming office and also represented the first high-level delegation from an ASEAN member state after Prime Minister Modi’s re-election in June this year.
On the invitation of India’s Prime Minister, Narendra Modi, the Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, made an official visit to India on 18-20 August 2024. This visit marked his first to India since assuming office and also represented the first high-level delegation from an ASEAN member state after Prime Minister Modi’s re-election in June this year.

Accompanied by a distinguished delegation, Prime Minister Anwar Ibrahim engaged in bilateral discussions with Prime Minister Modi and also met with President Droupadi Murmu. Their talks covered a broad spectrum of issues, ranging from bilateral cooperation to regional and global matters of mutual interest. The visit was further highlighted by the signing of 11 Memoranda of Understanding (MoUs), underscoring the deepening collaboration between the two nations.

Frequent high-level visits between India and Malaysia have long been a hallmark of mutual trust, interdependence, and a shared commitment to a long-term partnership. Since 1954, nearly every Indian Prime Minister has undertaken an official visit to Malaysia, reflecting the deep-rooted ties between the two nations.

This enduring trust has been instrumental in elevating the relationship from an Enhanced Strategic Partnership to what both leaders envision as a durable and dependable Comprehensive Strategic Partnership in the future. During this visit, both Prime Ministers reaffirmed their commitment to achieving this shared goal.

Significance of the visit

Malaysia holds a special place in India’s strategic calculus within the Southeast Asian region, owing to its strategic location, centuries-old cultural ties, and robust trade relations. This visit is particularly significant as it occurred at a time when Malaysia is aspiring to join BRICS, a move that could be bolstered by India’s support, given its rising global stature and influential role at both multilateral and bilateral levels.

 India has emerged as a prominent advocate for the concerns and rights of the Global South in the contemporary international arena. Prime Minister Ibrahim expressed his appreciation for India’s leadership in hosting the Voice of the Global South Summit (VOGSS), which provided a platform for these nations to deliberate on shared concerns, interests, and priorities, as well as to exchange ideas and solutions.

In a media interview, Prime Minister Ibrahim confirmed that Prime Minister Modi had agreed to support Malaysia’s bid to join BRICS. Earlier, on 18 June 2024, Prime Minister Ibrahim had conveyed Malaysia’s desire to join the group to Brazilian President Lula da Silva.  

From India’s perspective, this visit was of critical importance, especially in light of the ongoing domestic tensions in three key IORA (Indian Ocean Rim Association) member states—Bangladesh, Myanmar, and Thailand. Additionally, India has been deeply concerned about the growing interest of major powers in the strategically significant St. Martin’s Island in the Bay of Bengal.

Historical and bilateral partnerships

Since the establishment of diplomatic relations in 1957, the bilateral relationship between India and Malaysia has seen steady growth. A significant milestone was reached in October 2010 with the establishment of a strategic partnership, which was further upgraded to an Enhanced Strategic Partnership in 2015.

This relationship reached new heights in 2024 when it was elevated to a Comprehensive Strategic Partnership. Several bilateral institutional mechanisms have played a crucial role in fostering and strengthening these ties. In 2018, the two countries commemorated the 60th anniversary of their diplomatic relations and pledged to elevate the partnership to even greater heights.

Economic relations

Economic ties have been a cornerstone in strengthening the bilateral relationship between India and Malaysia, serving as a vital component of their Enhanced Strategic Partnership. Bilateral trade between the two countries reached US$20.01 billion in the financial year 2023-2024.

Malaysia is India’s 16th largest trading partner, while India ranks among Malaysia’s top 10 trading partners. The existing Malaysia-India Comprehensive Economic Cooperation Agreement has significantly facilitated this growing trade relationship.

During the recent visit, both Prime Ministers encouraged industries on both sides to further enhance bilateral trade in a sustainable manner, benefiting both nations. Additionally, the ASEAN-India Trade in Goods Agreement (AITIGA) has contributed to the thriving trade, with Malaysia being India’s 3rd largest trading partner within ASEAN. 

In terms of investments, Malaysia ranks as the 31st largest investor in India, with Foreign Direct Investment (FDI) inflows amounting to US$3.3 billion. This figure is expected to rise by an additional US$5 billion, as both leaders agreed to enhance cooperation in promoting sustainable energy and climate change adaptation. On the other hand, over 150 Indian companies, including 61 joint ventures and three public sector undertakings, are currently operating in Malaysia.  

An MoU on digital cooperation signed during this visit is set to further strengthen economic ties by accelerating collaboration in key areas such as Digital Public Infrastructure, digital B2B partnerships, digital capacity building, cybersecurity, and emerging technologies like 5G, quantum computing, cloud computing, and the Internet of Things, among others.  

Defence relations

Similar to the economic sector, defence cooperation between India and Malaysia has steadily grown, establishing a reliable partnership that includes joint ventures, training, procurement, and logistical and maintenance support. This collaboration is guided by the MoU on Defence Cooperation signed in 1993. Indian Navy ships regularly visit Malaysian ports, facilitating maritime understanding between the two countries. To maintain this momentum, both sides have agreed to further expand collaboration in the defence industry and in defence R&D.

Cultural and technical cooperation

India and Malaysia share a robust cultural connection, bolstered by the presence of approximately 2.9 million Indian diaspora and around 2.75 million Persons of Indian Origin (PIO) in Malaysia. Additionally, India is the 5th largest source country for inbound tourists to Malaysia.Malaysia was among the first countries to receive COVID-19 vaccines under the Vande Bharat Mission phase 1 in May 2020. During the current visit, India has allocated 100 additional special seats under its Technical and Economic Cooperation (ITEC) programme for Malaysian nationals, focusing on areas such as cybersecurity, artificial intelligence, and machine learning.

Visit outcomes

To enhance the impact and mutual benefits of their relationship, both countries reached agreements on several key issues during the visit. Eleven Memoranda of Understanding (MoUs) were signed, covering diverse areas such as Recruitment, Employment, and Repatriation of Workers; Ayurveda and other Traditional Systems of Medicine; Digital Technologies; Culture, Arts, and Heritage; Tourism; Public Administration and Governance Reforms; Youth and Sports; and Financial Services, including an agreement between the Labuan Financial Services Authority (LFSA) and the International Financial Services Centres Authority (IFSCA) of India.

Both Prime Ministers agreed that the current moment is ideal for further consolidating the relationship into a Comprehensive Strategic Partnership. They jointly articulated a vision for economic growth, and development for both nations while emphasising connectivity, trade, green energy, and defence collaborations.

Conclusion

The visit served as a pivotal moment for reinforcing diplomatic ties and deepening the bilateral relationship between India and Malaysia. For Malaysia, it marked a significant step in securing India’s support for its BRICS membership bid. For India, the visit provided an opportunity to enhance collaboration with Malaysia across diverse fields, including digital technologies, defence, and traditional medicine.

The discussions between the two Prime Ministers were comprehensive, addressing a wide range of issues and exploring new avenues to further the partnership. Additionally, the leaders addressed regional issues, emphasising their commitment to strengthening the bilateral relationship and advancing mutual interests.

***The writer is a Research Fellow at MP-IDSA; views expressed in this article are personal