India and Malaysia Pledge to Boost Trade, Deepen Cooperation in Semiconductors and Defence

Putrajaya: India and Malaysia have agreed to strengthen bilateral trade and expand cooperation in key sectors including semiconductors, defence, food security, healthcare and tourism, following talks between Indian Prime Minister Narendra Modi and Malaysian Prime Minister Anwar Ibrahim on Sunday.
The meeting, held in Malaysia’s administrative capital Putrajaya, marked Modi’s first official visit to the country since India–Malaysia relations were upgraded to a Comprehensive Strategic Partnership in August 2024. The discussions underscored a shared commitment to deepening economic and strategic engagement, according to Reuters.
Addressing a joint press conference after the talks, Prime Minister Anwar Ibrahim said the partnership offered vast opportunities for cooperation across multiple sectors. “This is truly a comprehensive partnership. We believe that, in line with the commitments made by both governments, these decisions can be implemented swiftly,” he said.
In the presence of the two leaders, 11 cooperation agreements were exchanged, including memorandums on collaboration in the semiconductor industry, disaster management, and peacekeeping operations.
The two sides also agreed to continue efforts to facilitate bilateral trade by promoting the use of local currencies in cross-border transactions. Bilateral trade between India and Malaysia stood at USD 18.6 billion last year, a figure that Anwar said is expected to be surpassed in the current year.
Additionally, Malaysia announced its support for India’s proposal to open a consulate in the state of Sabah on the island of Borneo, a move expected to enhance diplomatic and economic engagement in the region.
The agreements reflect a growing convergence between New Delhi and Kuala Lumpur amid shifting global supply chains and rising strategic importance of semiconductor and defence cooperation in Asia.