India and Malaysia on Sunday agreed to deepen cooperation across priority areas including trade and investment, defence, energy, advanced manufacturing and semiconductors, with Prime Minister Narendra Modi stressing that both countries remain committed to peace and stability in the Indo-Pacific.
Following comprehensive talks with Malaysian Prime Minister Anwar Ibrahim, Modi reiterated New Delhi’s stance on terrorism, saying, “Our message on terrorism is clear. No double standards. No compromise.”
The two sides signed 11 agreements and outcome documents aimed at expanding bilateral cooperation. These include a framework agreement to strengthen collaboration in the semiconductor sector and another pact between Malaysia’s Anti-Corruption Commission and India’s Central Bureau of Investigation (CBI) to enhance cooperation in tackling corruption.
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Modi, who arrived in Kuala Lumpur on Saturday, and Ibrahim also welcomed initiatives to promote the use of local currencies — the Indian rupee and the Malaysian ringgit — for trade settlements.
It is understood that the Reserve Bank of India (RBI) and Malaysia’s central bank are currently in discussions to work out the modalities for operationalising the arrangement.
”We will pave the way for economic transformation through strategic trust,” Modi said, describing the India-Malaysia relationship as ”special”.
”We are maritime neighbours. For centuries, our peoples have had deep and cordial ties,” he said in his media statement.
It is learnt that India continued to press Kuala Lumpur to extradite controversial Islamic preacher Zakir Naik, people familiar with the matter said adding there are technical aspects involved in it.
In his remarks, Ibrahim noted India’s economic growth and said his country would benefit immensely if it could secure more ways and opportunities to collaborate with New Delhi.
”It (India’s economic growth) is one spectacular rise in the international eco and trade scene,” he said, calling the decision to use local currencies for bilateral trade as ”remarkable”.
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In the talks, Malaysia extended its support for India’s permanent membership in a reformed UN Security Council.
Elaborating on engagement in the security domain, Modi said cooperation in counter-terrorism, intelligence sharing, and maritime security will be strengthened, adding both sides will further expand defence ties.
”Along with AI and digital technologies, we will advance partnerships in semiconductors, health, and food security,” he said, noting that the discussions at the CEO Forum opened new opportunities for trade and investment.
The two prime ministers also ”unequivocally and strongly condemned” terrorism in all its forms including cross-border terrorism and called for ”zero tolerance” of terrorism, according to a joint statement.
The two leaders also called for concerted global efforts to combat terrorism in a comprehensive and sustained manner and agreed to work towards countering radicalisation and violent extremism.
They also resolved to work towards combating financing of terrorism, preventing use of new and emerging technologies for terrorist purposes.
Modi announced the setting up of a dedicated Thiruvalluvar chair at University Malaya and also New Delhi’s decision to establish an Indian Consulate General in Malaysia.
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The prime mini