India, Malaysia elevate ties to comprehensive strategic partnership

Malaysian PM says that his government may consider an Indian request to extradite Naik if compelling evidence is produced

India and Malaysia on Tuesday elevated their ties to a comprehensive strategic partnership during the Malaysian premier Anwar Ibrahim’s maiden visit in his official capacity.

Prime Minister Narendra Modi and Ibrahim discussed ways to grow cooperation in fields such as defence, security, digitalization, semiconductors and artificial intelligence (AI).

Both nations signed agreements ranging from employment conditions for Indian workers in Malaysia to recruitments and also a deal to link India’s unified payments interface (UPI) with Malaysia’s payments network, or PayNet.

“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,” Modi posted on his social media handle on X.

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Both the Prime Ministers welcomed the record $19.5 billion in bilateral trade and urged industries on both sides to enhance it sustainably and mutually.

The two PMs also condemned terrorism, stressing that no country should harbor terrorists, and agreed to work together to swiftly bring perpetrators of terrorism to justice, in line with domestic laws and international conventions.

Agreeing to hold regular exchanges on bilateral, plurilateral, and multilateral issues of mutual interest, including joint commission meetings (JCMs) and foreign office consultations, Modi and Ibrahim exchanged MoUs on cooperation in employment, worker repatriation, ayurveda, digital technologies, and financial services between Labuan Financial Services Authority (LFSA) and International Financial Services Centre Authority, India (IFSCA).

The leaders discussed cooperation in politics, defense, security, trade, digital technologies, startups, fintech, energy (including renewables), healthcare, higher education, culture, tourism, and people-to-people relations.

Modi posted on X about strengthening supply chains between India and members of the Asean grouping, with both sides agreeing to conclude the Asean-India Trade in Goods Agreement (AITIGA) review process by 2025 to make it more effective, user-friendly, and trade-facilitative.

Both the premiers also welcomed discussions on convening the 2nd Joint Committee Meeting of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA).

The Prime Ministers appreciated the collaboration between the Reserve Bank of India and Bank Negara Malaysia to promote local currency settlement in bilateral trade and investments, encouraging industries to further facilitate invoicing and settlement in Indian rupees and Malaysian ringgit.

They welcomed the signing of the MoU on digital technologies, urging the early convening of the Malaysia-India Digital Council to accelerate collaboration in areas like digital public infrastructure, digital B2B partnership, digital capacity building, cybersecurity, and emerging technologies such as 5G, quantum computing, cloud computing, and IoT.

The leaders also recognized the digital economy priorities of both countries, acknowledging the success of India’s UPI and ongoing engagement in payment systems between India and Malaysia.

Both sides welcomed the discussions between Startup India and Cradle Fund of Malaysia through an India-Malaysia Start-up Alliance.

The two Prime Ministers also acknowledged the steady cooperation in bilateral defense and security partnerships as core pillars of their enhanced strategic partnership, agreeing to intensify defense cooperation through regular exchanges, dialogues, exercises, and capacity-building efforts.

Both sides agreed to expand collaboration between the defense industry and defense research and development.

During his three-day visit, the Malaysian PM was accompanied by a high-level delegation including foreign minister Utama Haji Mohamad Bin Haji Hasan, trade and industry minister Zafrul Abdul Aziz, and tourism minister Tiong King Sing, among others.

Ibrahim received a ceremonial reception at Rashtrapati Bhavan and visited Raj Ghat to pay tribute to Mahatma Gandhi.

Meanwhile, speaking at an event at the Indian Council of World Affairs, Ibrahim said his country is open to any ideas and if evidence is submitted with regards to fugitive preacher Zakir Naik, Malaysia “will not condone terrorism”.

He was responding to a question about India’s request for the extradition of the controversial preacher who is wanted for money laundering and inciting extremism.

Ibrahim said Naik’s extradition didn’t arise during his talks with Modi, but noted that the Indian PM had raised the issue earlier. He stated that his government might consider the extradition if compelling evidence is provided, adding, “Malaysia does not condone terrorism.”

He emphasized that India and Malaysia are collaborating on many issues, including terrorism, and that this should not hinder their bilateral relations.

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