Semiconductors, Trade, Defence To Form Backbone Of India-Malaysia Ties

India and Malaysia on Sunday unveiled an expansive roadmap to deepen their Comprehensive Strategic Partnership, placing strong emphasis on semiconductors, digital payments, defence cooperation and trade facilitation, following wide-ranging talks between Prime Minister Narendra Modi and his Malaysian counterpart Anwar Ibrahim in Kuala Lumpur.

The joint statement issued after one-on-one and delegation-level meetings underscored a clear intent by both sides to future-proof bilateral ties amid global economic uncertainty, supply chain disruptions and evolving security challenges in the Indo-Pacific. The visit, Modi’s first official trip to Malaysia since the partnership was elevated to Comprehensive Strategic Partnership (CSP) in August 2024, marked a decisive shift from traditional cooperation to strategic and technology-driven engagement.

A key outcome was the decision to deepen collaboration in the semiconductor sector, which both leaders described as “strategic” for global technology resilience. India and Malaysia agreed to strengthen the semiconductor value chain through joint initiatives in innovation, workforce development and supply chain stability. Ongoing cooperation between IIT Madras Global and Malaysia’s Advanced Semiconductor Academy, as well as between industry bodies from both countries, was highlighted as a foundation for building a competitive ecosystem.

Trade and investment featured prominently in the discussions, with both leaders acknowledging strong growth in bilateral commerce and calling for greater balance and diversification. Malaysia recognised India as a vital global economic partner, while both sides agreed to enhance trade facilitation in emerging areas such as semiconductors, digital economy and advanced manufacturing. The leaders welcomed the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA) to make it more contemporary and business friendly, and urged optimal use of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA).

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