Kuala lumpur: India is increasingly viewing Malaysia as a strategic gateway to expand its economic footprint in Southeast Asia, using the country as a springboard to deepen trade and business engagement across the region, an academician said. University of Nottingham Malaysia Assistant Professor of Business Economics Dr. Chee Meng Tan highlighted this perspective, emphasizing India's strategic partnership ambitions in the region.
According to BERNAMA News Agency, Dr. Tan noted that India seeks strategic partners to enhance its influence and visibility in Southeast Asia, a region that has drawn heightened attention in recent years from major global players, including China and the United States. He articulated these insights during a segment titled Malaysia-India Relations: The Road Ahead, produced by Bernama TV.
In a related development, US President Donald Trump announced that tariffs on Indian goods will be reduced to 18 percent following a trade deal with Indian Prime Minister Narendra Modi. Under this agreement, India has committed to halting purchases of Russian oil and lowering trade barriers on US exports.
Touching on trade relations, Dr. Tan pointed out that China remains Malaysia's largest trading partner, followed by Singapore and the United States, making up a substantial share of the country's total trade. Although India is a moderate trading partner, it has shown strong growth potential, with bilateral trade valued at about US$20 billion, or approximately RM80 billion to RM90 billion.
Dr. Tan observed that global companies, particularly in the technology sector, are restructuring supply chains to reduce dependence on China, with manufacturing increasingly shifting to Southeast Asia and South Asia. He mentioned Apple's expanded manufacturing capacity in India, which still relies on key components such as semiconductors, where Malaysia is the world's sixth-largest exporter.
He added that closer collaboration between Malaysia and India could deliver significant benefits, especially in technology, semiconductors, and advanced manufacturing. However, he cautioned that Malaysia must carefully balance its foreign and economic relations to avoid aligning too closely with any single major power.
Dr. Tan also highlighted Malaysia's strategic location, noting that the Straits of Malacca is a vital export, import, and petroleum transport route, essentially controlled by three countries: Indonesia, Malaysia, and Singapore. This makes it a coveted corridor for India, the US, and China. He emphasized that Malaysia, despite its relatively small size in terms of population and economy, possesses technological capabilities and investment potential that attract major global interests.
'If Malaysia plays its cards well, we could be in a position to make certain demands going forward,' he remarked.