Prime Minister Narendra Modi and his Malaysian counterpart Anwar Ibrahim used a joint press conference to reaffirm their commitment to an expanded and mutually beneficial economic partnership, centred on the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA).

They emphasised that the review should be completed at the earliest opportunity and highlighted the importance of friendly countries like Malaysia in broadening India’s engagement with ASEAN. The dialogue underscored that AITIGA remains a key instrument for advancing trade facilitation and aligning with current global trading practices.

Both leaders stressed the strategic value of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) and the broader bilateral framework, noting that the partnership has strengthened regional economic ties since its impetus in 2024.

They discussed how MICECA and related measures can deepen economic ties, encourage more robust trade, and support diversified cooperation in areas such as semiconductors, the digital economy, and industrial collaboration. The emphasis was on making trade arrangements more mutually beneficial and responsive to contemporary market realities.

During their talks, Modi and Anwar also reaffirmed their shared interest in enhancing connectivity, particularly in air and maritime links, as a critical enabler of trade and investment. They welcomed efforts to improve logistics and cross-border movement, with a view to facilitating smoother bilateral commerce.

The leaders noted the potential of stronger connectivity to unlock opportunities across priority sectors, including Infrastructure, Energy (notably Renewable Energy), Advanced Manufacturing, Healthcare, Digital Economy, Fintech, Start-ups, Artificial Intelligence, and Green Technologies.

On the investment front, Modi highlighted India’s appeal as a destination for Malaysian investment, while Anwar pointed to the significant presence of Indian manufacturing and technology firms in Malaysia, which have contributed to high-skilled job creation. They welcomed the growing bilateral investments and agreed to encourage greater collaboration across diverse sectors, aiming to sustain and accelerate momentum in trade and investment flows.

The joint statement reflected recognition of India as a vital global economic partner by Malaysia, with bilateral trade approaching twenty billion US dollars. It acknowledged the diversification of trade into sectors ranging from agricultural products to chemicals, minerals, appliances, and machinery, and noted intensified engagement in emerging domains such as semiconductors and digital technology. Both leaders stressed that their partnership is built on mutual value and strategic synergy, and they committed to leveraging this foundation to enhance trade facilitation and explore new opportunities.

In a positive note on regional and global governance, Modi and Anwar discussed reforms and shared perspectives on developments in the Indo-Pacific and the expanding India-ASEAN partnership. They also welcomed the outcomes of the 10th India-Malaysia CEO Forum, held in Kuala Lumpur, and expressed optimism that the Forum would continue to complement government-level efforts in strengthening trade and investment relations.

The two PMs commended ongoing collaboration between the Reserve Bank of India and Bank Negara Malaysia to promote local currency settlement in bilateral trade and urged industries to increasingly settle transactions in Indian Rupee and Malaysian Ringgit, aiming to reduce currency risks and enhance financial efficiency.

Looking ahead, both leaders expressed ambition for the bilateral relationship to grow beyond the current high baseline, with Malaysia projecting further trade expansion beyond last year’s figure of USD 18.59 billion. Anwar’s remarks reflected enthusiasm about deeper collaboration with India to unlock more opportunities, and Modi reaffirmed India’s role as a dynamic investment destination and partner in regional economic integration.

Overall, the pink line of the discussions was a shared resolve to accelerate the review of AITIGA, reinforce MICECA, expand sectoral cooperation, and deepen connectivity and investment flows—an approach intended to strengthen the India-ASEAN strategic partnership within the broader Indo-Pacific economic framework.

Based On ANI Report