Kuala lumpur: India is keen to deepen its already robust business linkages with Malaysia in the fast-growing semiconductor industry and digital economy. India’s High Commissioner to Malaysia, B N Reddy, emphasized Malaysia’s established role as a leader in the semiconductor sector and expressed India’s interest in enhancing collaboration.
According to BERNAMA News Agency, Malaysia has shown a strong interest in partnering with India in the semiconductor sector. Reddy stated the potential for bilateral partnership is promising, given India’s increasing focus on semiconductors through its India Semiconductor Mission (ISM), which aims to develop a domestic chip and display manufacturing ecosystem. The mission targets chip production in the 28-nanometre to 90-nanometre range, covering over 60 per cent of the industry under the ISM. India aims to triple its semiconductor market size to US$109 billion by 2030, up from US$38 billion in 2023, with six major semiconductor manufacturing facilities already approved und
er the initiative.
Reddy also highlighted that trade between India and Malaysia has continued to strengthen, reaching about US$20 billion in 2024 despite global economic headwinds and geopolitical uncertainties. In June 2024, India exported US$765 million to Malaysia and imported US$1.23 billion. India’s exports surged by 93.9 per cent compared to the same month last year, while imports grew by 14.5 per cent.
The ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA), which began in 2023 and is expected to conclude by year-end, is set to further enhance regional trade and investment, particularly in the digital economy. One of the key objectives is to make trade more effective, user-friendly, and simpler for businesses. Recent talks in Kuala Lumpur between an Indian delegation and Malaysia, in its role as ASEAN coordinator, marked significant progress.
India has been a full dialogue partner of ASEAN since December 1995, with the partnership elevated to summit level in 2002. Reddy acknowledged
challenges to two-way trade, including asymmetries in market access and issues surrounding rules of origin, which need to be addressed through the AITIGA review. Solutions must be found to align the agreement with evolving global trading practices.
Reddy also mentioned the potential for cooperation in digital payments, expressing hope that India’s unified payments interface could soon be accepted in Malaysia. The development of interoperable QR code networks would enable seamless cross-border transactions, benefiting users from both nations and improving digital connectivity between the economies.
As India deepens its engagement with ASEAN, its expanding trade and technology ties with Malaysia are expected to play a key role in shaping regional economic integration.