Kuala lumpur: Malaysia and India have agreed to expedite the use of the ringgit and rupee in bilateral trade and investment, announced Prime Minister Datuk Seri Anwar Ibrahim. Anwar highlighted that Bank Negara Malaysia and the Reserve Bank of India will collaborate to promote local currency settlements, aiming to facilitate more efficient and cost-effective transactions.
According to BERNAMA News Agency, Prime Minister Anwar made this announcement during a joint press conference with his Indian counterpart Narendra Modi. Modi is on an official visit to Malaysia, reciprocating Anwar's visit to India in August 2024. The two leaders discussed advancing the strategic partnership between their countries, which have maintained diplomatic relations since 1957 and elevated them to a comprehensive strategic partnership in 2024.
Anwar, also Malaysia's Finance Minister, pointed out that Malaysia-India bilateral trade is poised to surpass the US$18.59 billion achieved last year. He emphasized the strategic importance of enhancing relations between India and Malaysia, noting the potential benefits for Malaysia within the ASEAN context through increased collaboration with India.
The Prime Minister underscored the historical ties and strong people-to-people linkages between the two countries, which will foster deeper cooperation in various fields, including trade, investment, semiconductors, digital economy, energy, agriculture, food security, defence, and education.
Both nations agreed to expedite the review and optimization of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) and to strengthen cooperation in high-value sectors such as semiconductors, digital trade, green technology, and advanced manufacturing. Anwar also welcomed the establishment of the Malaysia-India Digital Council (MIDC) and ongoing discussions on bilateral payment linkages between NPCI International Payments Ltd (NIPL) and PayNet Malaysia.
Furthermore, Malaysia has requested India's consideration to expand air traffic rights, allowing additional capacity and access to more secondary cities to meet the growing demand for tourism, trade, and people-to-people exchanges. Anwar also welcomed progress by Petroliam Nasional Bhd (Petronas) and Gentari in strengthening semiconductor value-chain cooperation and talent development in India.
Malaysia's exports to India amounted to RM52.3 billion (US$12.24 billion), with imports totaling RM27.19 billion (US$6.35 billion). Key export items include palm oil and palm oil-based products, along with electrical and electronic products, while imports primarily consist of agricultural, petroleum, and chemical products.