India – Malaysia Relations 

India – Malaysia Relations 

Context:

Recently, during Malaysian Prime Minister Anwar Ibrahim’s visit to India, both countries agreed to elevate their relationship to a “Comprehensive Strategic Partnership.” This upgrade, decided in talks between Prime Minister Narendra Modi and Anwar Ibrahim, aims to advance bilateral ties beyond previous tensions.

Key Outcomes of the recent visit:

Strengthening Trade and Investment:

• • • The two countries agreed to accelerate the review of the Comprehensive Economic Cooperation Agreement (CECA) to further enhance trade relations, especially in emerging areas such as semiconductors, fintech, and the defence industry.
    • The Indian government agreed to a “one-time” special allocation of 200,000 MT of white rice to Malaysia, responding to its request for India to ease restrictions on rice and sugar exports.
    • India and Malaysia agreed to  settling bilateral trade in their own currencies.
    • Both sides welcomed the ongoing discussions between Start-up India and Malaysia’s Cradle Fund, along with other stakeholders, through the India-Malaysia Start-up Alliance.

Cooperation in Digital Technologies:

• • • Work will be done to link India’s payment system UPI with Malaysia’s PayNet.

Defence and Security Cooperation:

• • • India expressed interest in supplying defence equipment to Malaysia, including aircraft manufactured by Hindustan Aeronautics Limited (HAL).
    • Both countries attend each other’s biennial defence exhibitions, LIMA and MILAN.
    • India also contributes to the Cooperative Mechanism on the Straits of Malacca and Singapore (SOMS), focusing on navigational safety and environmental protection.

People-to-People Ties and Cultural Exchanges:

• • • Malaysia is home to nearly 3 million people of Indian origin, making it one of the largest Indian diaspora communities in the world.
    • A key agreement signed during the visit was a Memorandum of Understanding (MoU) on recruiting Indian workers to Malaysia. 
    • This pact addresses issues of illegal immigration and human trafficking, aiming to facilitate recruitment while protecting workers’ rights and interests.
    • To strengthen these ties, it was decided to establish an Ayurveda chair at Malaysia’s University Tunku Abdul Rahman and a Tiruvalluvar Chair at the University of Malaya.
    • Higher Education:The two Prime Ministers agreed to strengthen cooperation in higher education. Malaysia welcomed India’s allocation of 100 seats under the Technical and Economic Cooperation (ITEC) Programme for Malaysian nationals in cybersecurity, artificial intelligence, and machine learning.

Commitment to ASEAN Centrality:

• • • India reiterated its commitment to ASEAN centrality and agreed to complete the review of the FTA between India and ASEAN in a timely manner by 2025.

Combating Terrorism and Extremism:

• • • The two countries expressed unanimous views in combating terrorism and extremism, areas where they share common concerns.

Areas of convergence in Relations: 

Geopolitics 

• • • Both Support for multilateralism at UNSC And UNHRC 
    • Malaysia Supports India’s permanent membership of UNSC
    • The democratisation of UNSC by expanding its membership to better address global challenges and include more developing countries.
    • Indo-Pacific, India views Malaysia as a crucial partner in expanding its influence within ASEAN and enhancing maritime connectivity. 
    • This aligns with India’s Act East Policy, which aims to strengthen ties with Southeast Asian nations amidst China’s growing assertiveness in the region. 
    • Both countries are members of various global forums, including the Commonwealth, NAM, and G-77, which provide a platform for collaborative efforts in addressing regional and global challenges.
    • Both India and Malaysia’s non-aligned foreign policies help maintain their independence and facilitate their role as mediators in regional conflicts.

Geostrategic Partnership

• • • In the Indo-Pacific region, India and Malaysia navigate the complexities of US-China rivalry, with India’s rising military and economic power reshaping the geopolitical landscape.
    • This partnership enhances defence cooperation and strategic dialogue, focusing on maritime security and freedom of navigation in crucial sea lanes vital for their economic interests.

Areas of Divergence in Relation:

Trade Imbalances:

• • • Malaysia often has a trade surplus with India due to its palm oil exports and other commodities.
    • In 2022, Malaysia’s exports to India totalled $12.42 billion, while India’s exports were $7.19 billion.

Geopolitical Tensions:

• • • Geopolitical challenges, especially tensions in the South China Sea and regional power dynamics, influence bilateral relations.
    • South China Sea: While not directly involving India, Malaysia’s claims in the South China Sea and its relations with China can indirectly affect India’s strategic interests in the region.
    • Malaysia’s strategic position in the Indo-Pacific region requires it to balance its relationships with major powers. It employs a hedging strategy with both the United States and China, which can act as a roadblock to initiatives like QUAD, of which India is a member. 

Political Disagreements:

• • • Palm oil dispute: In 2019-2020, India restricted palm oil imports from Malaysia after then-Prime Minister Mahathir Mohamad criticised India’s actions of abrogation of Article 370 in  Kashmir and the Citizenship Amendment Act.
    • Zakir Naik controversy: Malaysia’s refusal to extradite the controversial Islamic preacher Zakir Naik, wanted in India on charges of money laundering and hate speech, has been a point of contention.

Way forward to strengthen the relation: 

Promoting Tourism:

• Agreements: The 2010 tourism-focused MoU and the revised 2017 air services agreement have improved travel facilitation and connectivity between the two countries.

• The Government of Malaysia announced visa-free travel for Indian Nationals from 01 December 2023 until 31 December 2024 to promote inbound tourism to Malaysia Between India and Malaysia.

• Commitment to sustainable Growth: Malaysia is involved in India’s combating climate change initiatives, including the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), and the International Big Cat Alliance (IBCA).