New Delhi, Aug 20 (UNI) India and Malaysia decided to elevate their ties to Comprehensive Strategic Partnership, and increase cooperation in the fields of semiconductor, fintech, defence industry, AI and quantum, Prime Minister Narendra Modi said on Tuesday after holding talks with visiting Malaysian PM Anwar Ibrahim. The two sides also inked nine MoUs.

In a post on X, PM Modi said he had held fruitful talks with PM Anwar Ibrahim.

“Had fruitful talks with PM @anwaribrahim of Malaysia. We took stock of the full range of bilateral ties between our nations and considering the extensive engagements between the two nations, we have decided to elevate our partnership to a Comprehensive Strategic Partnership.”

Earlier, in his media statement after holding bilateral talks in Hyderabad House, PM Modi said that their Enhanced Strategic Partnership, which was announced in 2015, has completed 10 years. “In the last two years, with the support of Prime Minister Anwar Ibrahim, our ties have got new momentum and energy.”

He said the two sides have begun trade in Rupay and Ringitt.

“We believe there is a lot of potential in trade and two-way investment, and we should increase cooperation in the area of semiconductor, fintech, defence industry, AI and quantum,” the PM said.

He also said that the two countries are working on linking their payment systems, India’s UPI and Malaysia’s Paynet.

“We have also discussed new possibilities of mutual cooperation in the defence sector. We are also unanimous in the fight against terrorism and extremism,” PM Modi said.

Speaking of the Indian diaspora, the PM said that India and Malaysia are joined by three million strong PIOs who are a living bridge, with Indian music, food and culture, and festivals celebrated in both countries. “Our people give strength to the partnership,” he added.

He said today’s agreement on employment of workers -- Recruitment, Employment and Repatriation of workers - will promote recruitment of workers from India as well as protect their interests. “We have simplified visa procedures to facilitate the movement of people”.

PM also said that India is for ASEAN centrality, and that both sides are for a peaceful and secure Indo-Pacific and the rights of overflight in the region.

The Malaysian PM Anwar Ibrahim, in his remarks, termed PM Modi a true friend and brother. “His friendship is sincere, not just when I am PM but when I was nobody, he was very kind. He makes deliberations very easy.”

He said the two sides held discussions as “true brothers on all issues sensitive to us, in the true meaning of friendship”.

“India is an important and great nation, and Malaysia is much smaller but very proud of its civilisation, culture and multi-ethnicity,” he said.

He said Malaysia and India will emerge as two strong brotherly nations.

PM Anwar admitted that the relationship between Malaysia and India had not been actively pursued in recent years, in a reference to the time in 2019 when under former PM Mahathir Mohamad the relations had soured over the latter’s remarks on Kashmir following India’s abrogation of Article 370.

“It is unfortunate that in the last many years, our relations have not been truly forthcoming,” he remarked.

PM Anwar called for the two countries to work more closely in areas like digitalisation, energy transition, food security and the semiconductor industry.

Anwar said he and Modi had set a timeframe for results.

“Knowing Modi’s style of work, he doesn’t tolerate long delays, so we have set a timeframe of three months for our staff to take action and report on the progress,” he said.

India is a key trading partner for Malaysia, especially for palm oil and palm oil products. Last year, this totalled 3.3 million tonnes, valued at US$3 billion (RM14 billion), or 13% of Malaysia’s total palm oil exports.

Following the talks, the two sides inked nine MoUs/agreements and made 10 announcements.

The MoUs/Agreements are on:

*Recruitment, Employment and Repatriation of workers

*Co-operation in the field of Ayurveda and other traditional systems of medicine.

*Cooperation in the field of Digital Technologies.

*Program on Cooperation between the Government of the Republic of India and the Government of Malaysia in the field of Culture, Arts and Heritage.

*Cooperation in the field of Tourism.

*Cooperation in Youth and Sports

*Cooperation in the field of Public Administration and Governance Reforms.

*MoU between International Financial Centre Services Authority (IFSCA) with Labuan Financial Services Authority in relation to mutual cooperation.

*Presentation of Report of the 9th India- Malaysia CEO Forum held on 19 August 2024

The Announcements were:

*India-Malaysia relationship elevated to Comprehensive Strategic Partnership

*India- Malaysia Joint Statement

*Special Allocation of 200,000 MT of White Rice to Malaysia

*Allocation of 100 additional ITEC slots for Malaysian nationals

*Malaysia joining the International Big Cat Alliance (IBCA) as founding member

*Establishment of Ayurveda Chair at University Tunku Abdul Rahman (UTAR), Malaysia

*Establishment of Thiruvalluvar Chair of Indian Studies at the Malaya University, Malaysia

*Co-operation between Start-up Ecosystems in both countries under an India-Malaysia Startup Alliance

*India- Malaysia Digital Council

*Convening of the 9th India- Malaysia CEO Forum

Secretary East Jaideep Mazumdar, briefing the media, said the talks between the two PMs was marked by great warmth and personal rapport. When Anwar Ibrahim had visited India in 2019, when he was not PM, he shared close rapport with PM Modi, which was reflected in today’s talks.



Secretary East said the agreement on Recruitment, Employment and Repatriation of Workers “paves the way for the welfare of Indian workers, ensuring their welfare, proper conditions of work and repatriation” and would help in opening up the entire field of employment in Malaysia for Indian workers as well.

Asked if the issue of repatriation of radical Islamic preacher Zakir Naik, who is staying in Malaysia, had come up, the top official said that: “In the wide-ranging and comprehensive talks many issues were discussed that came up in the past as well, wide ranging talks on important topics. They talked about extremism and radicalism, and both see eye to eye on that and on how to counter it.”

He said that defence and security are an important pillar of engagement, and talks covered the topic of India being the source country of defence exports, of defence equipment.

UNI RN