The prime ministers of India and Malaysia sought to restore ties between the two countries on Tuesday (20/8), when they agreed to increase trade, movement of workers and the use of their own currencies to settle bilateral transactions.
Indian Prime Minister Narendra Modi said, “We will enhance cooperation in areas that require new and modern technologies such as semiconductors, fintech, defense industry, AI and quantum technologies.”
Nearly three million Indians live in Malaysia, but relations between the two countries deteriorated around the end of 2019, following statements by then-Malaysian Prime Minister Mahathir Mohamad and Malaysia's largely Muslim population, against India revoking the autonomy of India's only Muslim-majority region of Kashmir.
Malaysian Prime Minister Anwar Ibrahim said, “We are starting many new programmes and look forward to Indian and Malaysian companies working together further in all areas, including new and challenging areas such as energy transition, digitalisation and also food security. We emphasise the need to leverage our experience and expertise in the field of semiconductors,” Ibrahim explained.
The trade relationship has also impacted purchases of Malaysian palm oil by India, the world's largest buyer of vegetable oils such as palm oil. (ps/you)
