by Maria Casadei

After a year of diplomatic tensions, the Indian Prime Minister's visit to Kuala Lumpur on 7 and 8 February marked a rapprochement between India and Malaysia, with the signing of 11 agreements in various sectors. Modi also emphasised the importance of ties to Indo-Malaysians who represent the country’s third-largest ethnic group. Investment and technological cooperation have been revitalised.

Kuala Lumpur (AsiaNews) – Indian Prime Minister Narendra Modi's visit to Malaysia, a predominantly Muslim country, marked a revitalisation of bilateral relations after a year of mild tensions.

Arriving in Kuala Lumpur last weekend, Modi primarily sought to repair relations after the last-minute cancellation of a trip set for October 2025, coinciding with Diwali celebrations, during which he was scheduled to attend an Association of Southeast Asian Nations (ASEAN) summit.

Between 7 and 8 February, talks with Malaysian Prime Minister Anwar Ibrahim led to the signing of 11 agreements and memoranda of understanding (MoUs) centred on trade, investment, defence, energy, new technologies, advanced manufacturing, and semiconductors.

In particular, the semiconductor agreement strengthens the existing collaboration between IIT Madras Global and the Advanced Semiconductor Academy of Malaysia.

Relations between the two countries had gone through a delicate phase in 2025. Although Malaysia condemned the Pahalgam terrorist attack in India, Prime Minister Anwar had called for a thorough investigation and de-escalation between India and Pakistan, even offering to mediate.

The Malaysian prime minister then hosted Pakistani Prime Minister Shahbaz Sharif in October, irritating New Delhi.

The recently released joint statement, however, “unequivocally” condemns terrorism, including cross-border terrorism, and commits the two countries to stronger multilateral intelligence cooperation.

During the visit, Modi also emphasised the importance of people-to-people ties, calling them the heart of the "special" friendship between the two countries. Malaysia’s Indian community is one of its largest and most significant ethnic minorities.

According to official estimates, approximately 6.5-7 per cent of Malaysian citizens are of Indian origin, corresponding to more than 2 million people. When non-citizen residents of Indian origin are included, the total reaches approximately 2.7-2.9 million, or 8-9 per cent of the population.

Indo-Malaysians represent the third largest group after the Bumiputera (primarily ethnic Malays) and the Chinese.

Many Indians arrived in Malaysia during British colonial rule to work on plantations, transportation, and infrastructure, and their presence remains deeply rooted in many sectors of society.

The majority are of Tamil descent, but substantial numbers are ethnic Telugu, Malayala, Punjabi, and Gujarati.

Observers believe that the recently signed agreements, the free e-visa for tourism, and the introduction of the Unified Payments Interface (UPI) digital payment system in Malaysia will help further strengthen ties between the citizens of the two countries.

Modi himself met with Indo-Malaysian politicians and Malaysian business leaders, inviting them to invest in India in several strategic sectors.

Cooperation in the semiconductor sector could also prove crucial to India's aspirations. Malaysia is among the world's leading exporters, sixth globally, with the sector contributing approximately to 25 per cent of the country’s GDP.

Modi highlighted Indian companies' interest in working with Malaysia, particularly in research and the construction of manufacturing and testing facilities.

The opening of an Indian consulate general in the Malaysian capital was also announced.

The two sides have chosen not to publicly address sensitive issues, such as the permanence in Malaysia of preacher Zakir Naik, wanted in India on charges of money laundering and hate speech. So far, Kuala Lumpur has not agreed to extradition despite diplomatic pressure.

The two countries also avoided reviving differences over issues such as the ASEAN-India trade agreement, which Indian officials have criticised in the past for allegedly unduly favouring Southeast Asian countries, which can export their products more easily than India does to ASEAN markets.

Ahead of the BRICS summit, which India will chair this year, the joint statement released at the end of the visit acknowledges Malaysia's aspirations to join the group, in which it already participates as a partner country.

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• india
• malaysia
• asean
• narendra modi
• anwar ibrahim
• visit
• agreements
• tensions
• brics
• trade
• semiconductors