Malaysia, India agree to strengthen economic ties

By AJU PRESS Posted : August 21, 2024, 15:21 Updated : August 21, 2024, 15:50
Indian Prime Minister Narendra Modi (right) greets Malaysian counterpart Anwar Ibrahim before their meeting in New Delhi on Aug. 20, 2024. Yonhap
SEOUL, August 21 (AJU PRESS) - Malaysian Prime Minister Anwar Ibrahim's visit to New Delhi marks a significant step in mending relations with India, which had cooled since 2019. The leaders agreed to expand trade, allow increased migration of Indian workers to Malaysia, and use local currencies for bilateral transactions.

This trip, Anwar's first to India since taking office in November 2022, aims to reverse the negative impacts of previous tensions, including reduced palm oil imports by India. The strained relationship stemmed from former Malaysian PM Mahathir Mohamad's criticism of India's Kashmir policy.

Both nations signed treaties to enhance cooperation in digital technology, tourism and traditional medicine. Prime Minister Narendra Modi stated, "With the support of Prime Minister Anwar, a new impetus has been given to our partnership," adding, "We have decided to elevate our bilateral partnership to a 'Comprehensive Strategic Partnership' today."

Modi further emphasized, "We see that there is still a lot of potential for economic cooperation between the two countries," and "Trade and investment between the two countries will increase."

Anwar reciprocated, stating that Malaysia would revitalize ties with India across all sectors. He acknowledged that the relationship's full potential had been underutilized in recent years.

Analysts suggest this diplomatic effort aligns with India's strategy to counterbalance China's growing influence in Asia, noting Malaysia's recent closer engagement with Beijing.

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