Inside Modi’s high-profile Malaysia visit: Here’s why it’s big?

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India (Commonwealth Union)_ Indian Prime Minister Narendra Modi arrived in Malaysia for an official visit that marked a new phase in ties between the two countries. Malaysian Prime Minister Datuk Seri Anwar Ibrahim personally greeted Modi on the runway at Kuala Lumpur International Airport, demonstrating the warmth and importance of the visit. This was Modi’s third official visit to Malaysia, and the first after India and Malaysia upgraded their ties to Comprehensive Strategic Partnership in 2024.

 

The timing of the visit was significant, with both sides keen to expand cooperation in trade, defense, technology, energy, and people-to-people links. Modi was given a ceremonial welcome that included a red carpet, a royal guard of honor, and cultural performances. The atmosphere was cordial and optimistic, setting the tone for high-level discussions aimed at strengthening long-term bilateral ties.

 

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A grand cultural welcome for Modi

The visit began with a large-scale cultural extravaganza emphasizing the two countries’ common ancestry. Around 800 folk dancers (representing all regions of India) displayed the cultural richness and diversity throughout India’s various forms of traditional folk art at an event to celebrate both the Indian culture and its diversity. Prime Minister Anwar Ibrahim referred to this as an important symbol of historical continuity between India and Malaysia and that it goes far beyond the traditional formal treaties and agreements; he spoke of India-Malaysia’s history, culture, and many long-standing friendships over generations and concluded that these connections create a solid foundation for future connections between the two nations.

 

Anwar also acknowledged the important role of the Indian community in Malaysia. He said their contributions across business, education, culture, and public life have helped shape the country’s social harmony and economic progress. Both leaders underlined that cooperation in areas such as the economy, digital innovation, technology, and cultural exchange would continue to grow, reflecting shared aspirations for development and inclusivity.

 

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Modi meets the Indian diaspora

A major highlight of the visit was Modi’s address to the Indian diaspora in Kuala Lumpur. Malaysia is home to nearly three million people of Indian origin, making it one of the largest Indian communities outside India. Modi described India as a “trusted partner for growth” and said this reputation has been strengthened by recent trade and economic agreements with countries around the world. He greeted the audience in multiple languages, drawing warm applause. He spoke favorably of Malaysia’s cultural diversity and Anwar Ibrahim’s interest in Tamil music. Modi lauded Tamil’s global relevance, calling it one of India’s greatest cultural contributions to the globe.

 

Modi also noted that several senior Indian leaders, including cabinet ministers, the finance minister, and the foreign minister, come from Tamil Nadu. He said this reflected the state’s strong role in shaping modern India. Addressing the diaspora directly, Modi announced welfare measures, including expanded Overseas Citizen of India card eligibility for Malaysians of Indian origin up to the sixth generation. He assured the community that India would always remain connected to them.

 

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Launching the Thiruvalluvar Centre

To strengthen cultural and academic ties, Modi announced the establishment of a Thiruvalluvar Centre at the University of Malaya. The center will expand on the Thiruvalluvar Chair’s current research focus on arts, culture, leadership, and management. The project seeks to strengthen academic collaboration between Indian and Malaysian institutions. It will encourage student-faculty interactions, collaborative research, and information sharing across disciplines.

 

Modi also announced the Thiruvalluvar Scholarship for Malaysian nationals. The scholarship will help students pursue higher education in India, particularly in subjects such as culture, language, and social sciences. Modi also reaffirmed plans to build a new Indian consulate in Malaysia, which will improve diplomatic and people-to-people cooperation.

 

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Bilateral discussions in Putrajaya

Formal talks between Modi and Anwar Ibrahim took place in Putrajaya, covering a wide range of strategic and economic issues. Both leaders underlined their resolve to increase bilateral trade, which reached $18.6 billion last year. They agreed to pursue further partnership in semiconductors, defense production, food security, healthcare, tourism, and energy. Anwar expressed hope that trade volumes would continue to rise steadily in the coming years.

 

Semiconductor cooperation emerged as the key focus. Malaysia is a major participant in global chip testing and packaging, while India is making significant investments in creating its own semiconductor ecosystem. The two sides discussed joint projects, supply chain integration, and technology sharing. Energy security was another priority. Malaysia, a major provider of liquefied natural gas, may help India diversify its energy sources. Both countries also discussed cooperation in renewable energy, hydrogen, and biofuels.

 

A firm message on counter-terrorism

During a joint press conference, Modi delivered a clear message on terrorism. He said India’s approach leaves “no double standards and no compromise” when it comes to combating terrorism. The two leaders agreed to strengthen cooperation in defense, security, and intelligence sharing. Modi stressed the importance of a globally coordinated response to violent extremism, as well as India’s zero-tolerance policy. Anwar emphasized the necessity of regional and international collaboration in addressing similar security concerns such as marine safety and transnational crime.

 

Expanding cooperation in emerging sectors

In addition to traditional sectors, India and Malaysia have agreed to collaborate on development in newly identified sectors like artificial intelligence, digital technology, health innovation, and food security. Both governments see these as important for future development. One of the outcomes was increased support for local-currency trade settlement. The leaders complimented the Reserve Bank of India and Bank Negara Malaysia on their efforts to increase rupee and ringgit transactions, respectively. Digital payment integration was also examined, with both parties acknowledging its potential to enhance tourism, trade, and cross-border commerce.

 

India-Malaysia CEO Forum

The visit coincided with the 10th India-Malaysia CEO Forum, held in Kuala Lumpur. Business leaders from both countries presented a joint outcome report to government representatives. The meeting aimed to improve the Malaysia-India Comprehensive Economic Cooperation Agreement to reflect current economic realities. Participants advocated for increased coverage of fintech, renewable energy, healthcare, and digital infrastructure. They also advocated simplifying customs procedures, improving logistics, and adhering to larger regional trade agreements. Priority areas were supporting small and medium-sized businesses and increasing cross-border investment.

 

Strengthening semiconductor cooperation

One of the most significant commercial accomplishments was the formal exchange of notes on semiconductor cooperation. This alliance brings together government initiatives in an area where both countries are repositioning themselves globally. India is boosting its semiconductor manufacturing capacity through incentives and talent development. Meanwhile, Malaysia continues to serve as a worldwide hub for chip manufacturing and testing. Collaboration between Indian technical institutions and Malaysia’s semiconductor academies was highlighted, along with closer coordination between industry bodies in both countries.

 

India and Malaysia sign 11 MoUs

Modi and Anwar witnessed the exchange of 11 memoranda of understanding covering a wide range of sectors. These included disaster management, anti-corruption measures, and audio-visual co-production. Other agreements focused on peacekeeping cooperation, healthcare, vocational training, social security, and security collaboration. A framework related to wildlife conservation was also submitted. Earlier, the two leaders held a private meeting to review progress under the Comprehensive Strategic Partnership. Discussions covered trade, defense, labor mobility, tourism, agriculture, education, and regional issues.

 

India’s digital payments system comes to Malaysia

Modi announced that India’s Unified Payments Interface will soon be introduced in Malaysia. The system allows fast, secure digital payments directly between bank accounts using mobile phones. UPI has transformed digital payments in India and is now the world’s largest real-time retail payment system by transaction volume. Its introduction in Malaysia is expected to support tourism, retail, and small businesses.

 

New Indian Consulate in Kota Kinabalu

Malaysia welcomed India’s decision to open a new consulate in Kota Kinabalu, Sabah. Anwar said the move reflects the strength of bilateral relations. The consulate will support trade, investment, education, tourism, and cultural exchanges while also serving the Indian community in eastern Malaysia. Modi also announced youth exchange programs and scholarships for Malaysian students of Indian origin, further deepening people-to-people ties.

 

Modi concludes Malaysia visit

As the visit concluded, Modi thanked Anwar Ibrahim and the people of Malaysia for their hospitality. He described the discussions as productive and forward-looking. Modi invited Anwar to visit India in the near future. He said the visit had added new momentum to a partnership rooted in shared values, cultural bonds, and mutual respect. With agreements signed and new initiatives announced, the visit marked a significant step forward in India-Malaysia relations, setting the stage for deeper cooperation in the years ahead.

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