India, Malaysia agree to expand strategic partnership in defense and trade

India and Malaysia have agreed to significantly enhance bilateral cooperation across several strategic sectors, including defense, security, trade, and energy, during a two-day visit by Indian Prime Minister Narendra Modi to Kuala Lumpur. The discussions, held with Malaysian Prime Minister Anwar Ibrahim, focused on expanding the existing Comprehensive Strategic Partnership between the two nations.

Broadening Economic and Technological Ties

A joint statement issued at the conclusion of the visit outlined plans to boost collaboration in the digital economy, semiconductors, and industrial projects. Both leaders emphasized the importance of existing trade agreements—the Malaysia-India Comprehensive Economic Cooperation Agreement and the ASEAN-India Trade in Goods Agreement—and encouraged the use of local currencies for trade settlements to facilitate smoother economic exchanges. Bilateral trade reached $18.59 billion in 2025, reflecting substantial economic engagement.

Cooperation in Security and Food Sustainability

On defense and security, Modi and Ibrahim agreed to deepen coordination while issuing a strong joint condemnation of terrorism in all forms, advocating for "zero tolerance" and coordinated international action. In the realm of food security, the leaders agreed to enhance cooperation in the trade of staple commodities, with Malaysia reaffirming its commitment to remain a reliable supplier of sustainable palm oil, respecting each country’s domestic agricultural policies.

People-to-People and Regional Engagement

The talks also covered enhanced collaboration in science, technology, agriculture, health, education, tourism, and youth exchanges, underscoring the multifaceted nature of the partnership. With approximately 2.75 million people of Indian origin residing in Malaysia—about 9% of the population—people-to-people ties form a strong foundation for bilateral relations. Both leaders also exchanged views on regional and global developments of mutual interest, signaling alignment on key international issues.