Prime Minister Narendra Modi begins his third visit to Malaysia on Saturday and there’s a buzz that the timing may have been done with an eye on the elections to the Tamil Nadu assembly in April. The point being that Malaysia has a Tamil population of close to two million and any Modi outreach to them could help the BJP’s fortunes in the state.
But all that is conjecture, what we do know from the External Affairs Ministry is that Modi will address a diaspora event.
At a briefing, the ministry said the visit is tied to an invitation from his Malaysian counterpart Anwar Ibrahim, who was in Delhi in August 2024. The agenda is advancing defence cooperation, deepening strategic coordination and expanding economic and digital linkages.
Senior diplomat P Kumaran, who is Secretary (East) in the ministry said, “There is a lot of promise as far as defence cooperation is concerned.”
There have been discussions on the sale of Dornier aircraft, collaboration on Scorpene submarines, mid-life upgrades for SU-30 fighter aircraft and the potential supply of naval platforms by Indian shipyards.
The Malaysia–India Digital Council, set up in 2024, is working on artificial intelligence, digital public infrastructure and cybersecurity. Kumaran confirmed that “NPCI is set to sign an agreement with PayNet during the course of the visit.”
The 10th India–Malaysia CEOs Forum will be held with Modi meeting leading Malaysian business leaders.
“Malaysia is India’s third largest trading partner in ASEAN with bilateral trade around 20 billion dollars,” Kumaran said, adding that trade has expanded beyond palm oil into manufacturing, chemicals, machinery and agricultural products.
The visit also comes as India and Malaysia work with ASEAN on trade re-balancing. “The AITIGA (Asean-India Trade in Goods Agreement) review process is on,” Kumaran said, with the focus on tariff structures and liberalisation. However, he clarified, “I don’t think there is anything ready as an outcome for this visit as far as AITIGA is concerned.” He said the review of the India–Malaysia CECA is “still early days.”
Strategically, the visit follows the elevation of bilateral ties to a Comprehensive Strategic Partnership in August 2024. He said the visit “reflects India’s strong commitment to our relations with Malaysia, a key partner in India’s Act East Policy, Vision MAHASAGAR and also the Indo-Pacific vision,” and also underlines India’s engagement with ASEAN, where Malaysia is a founding member and chair in 2025.
MoUs Under Discussion
Several MoUs are under discussion across defence-adjacent and strategic sectors, including disaster management, UN peacekeeping, national security cooperation, semiconductors, anti-corruption, healthcare and technical and vocational training.
On semiconductors, Kumaran said, “Malaysia has a very strong semiconductor ecosystem,” with “something like 30% of their exports” linked to the sector, and that both sides are working on government-to-government, industry and R&D collaboration.
