INDIA – MALAYSIA TIES TO COMPREHENSIVE STARTEGIC PARTNERSHIP

INDIA – MALAYSIA TIES TO COMPREHENSIVE STARTEGIC PARTNERSHIP

WHY IN NEWS?

1. India and Malaysia have taken significant steps in order to elevate ties to Comprehensive Strategic Partnership during the recent visit of Malaysian Prime Minister to India.
2. Discussions were done between both the PMs to foster deeper cooperation and enhanced focus on the mutual interest of both the countries.

RECENT DEVELOPMENTS AFTER THE VISIT

1. The existing Enhanced Strategic Partnership established in 2015 has been replaced with the Comprehensive Strategic Partnership.
2. The decorum of bilateral trade between both the countries has been enhanced with a record of high USD 19.5 billion determining the robust economic ties and mutual interest in expansion of the trade relations of both the countries.
3. Digital investment has also been a key focus and both the countries have mutually agreed upon investing in fintech, energy sources, digital technologies, start-ups etc. in order to gain a strong economic cooperation.
4. The review process of AITIGA (ASEAN – India Trade in Goods Agreement) has been revised to make it more effective and business friendly. Further, the review has been decided to b concluded by 2025 enhancing the supply chain connection of India and ASEAN.
5. Several MoUs have also been signed in order to gain bolster cooperation between both the countries like –

1. PROCEDURE OF WORKERS - Recruitment, employment and repatriation of workers to manage the movement and working conditions off workers in both the countries.
2. AYURVEDA – Cooperation in the field of traditional system of medicines like Ayurveda has been sought in MoU.

India is looking forward to establish an Ayurveda Chair at University Tunku Abdul Rahman in Malaysia to promote traditional medicine education and research work.

1. ART & CULTURE – Encouraging the exchange of culture and its preservation.
2. GOVERNANCE AND SPORTS - The best practices have been decided to be shared in the MoU signed to bring administrative reforms in governance and youth engagement in sports.

FROM THE VISION OF INDIA

1. To strengthen ties with Southeast Asian nations, this visit aligns with India’s Act East Policy to continue its strategic front towards the ASEAN region.
2. Malaysia is a notable investor in India and is the 28th largest investor, with over USD 1.17 billion invested between April 2000 and March 2023.

• Approximately 70 Malaysian companies operate in India, covering diverse sectors from construction to human resources.
• Malaysia is India’s third-largest trading partner within ASEAN, while India is Malaysia’s largest trading partner in Southeast Asia. 

1. The visit aims to further secure and expand these investments, enhancing bilateral trade and economic collaboration.