Prime Minister Narendra Modi began a two-day visit to Malaysia, his third trip to the country, with defence and semiconductor cooperation topping the agenda.
Modi will hold talks with Malaysian Prime Minister Anwar Ibrahim to deepen trade, investment, and collaboration in defence, semiconductors, and digital technologies. India is exploring the sale of Dornier aircraft to Malaysia, along with cooperation in upgrading Scorpene submarines and SU-30 jets. Naval platforms built in Indian shipyards are also part of the discussions.
Malaysia, a global hub for semiconductor assembly and testing, accounts for nearly 30 per cent of exports in this sector. India and Malaysia are working on government-to-government agreements for semiconductor research, fabrication centres, and testing facilities. Private Indian companies are keen to establish joint ventures with Malaysian firms to boost semiconductor production.
The visit also includes the India-Malaysia CEOs Forum in Kuala Lumpur, where Modi will meet business leaders from key sectors. Malaysia is India’s third-largest trading partner in ASEAN, with bilateral trade valued at around $20 billion. Over 200 Indian companies, including joint ventures and public sector undertakings, operate in Malaysia across IT, construction, and pharmaceuticals.
Relations between India and Malaysia improved significantly under Anwar Ibrahim, after earlier tensions during Mahathir Mohamad’s tenure. In 2024, ties were elevated to a comprehensive strategic partnership during Ibrahim’s state visit to India. Modi’s current trip reflects India’s commitment to strengthening its Act East Policy, Vision MAHASAGAR, and Indo-Pacific strategy.
