KUALA LUMPUR, 8 February 2026 — Indian Prime Minister Narendra Modi and Malaysian Prime Minister Anwar Ibrahim reaffirmed their nations’ intent to deepen economic and strategic ties during Modi’s official two-day visit to Malaysia, underscoring a renewed focus on trade, technology, defence and people-to-people connections. 

The visit marks Modi’s first trip to Malaysia since the two countries elevated their relationship to a Comprehensive Strategic Partnership in August 2024 — a diplomatic milestone aimed at broadening collaboration across multiple sectors. 

Expanded Economic Engagement

At a joint press engagement in the administrative capital of Putrajaya, both leaders highlighted the need to expand bilateral trade and investment flows. While the nations recorded around US $18.6 billion in trade in 2025, officials expressed confidence that this figure could be surpassed as cooperation intensifies. 

The leaders agreed that future trade partnerships will place greater emphasis on local-currency settlements, encouraging businesses to use the Indian rupee and Malaysian ringgit in cross-border transactions, potentially reducing reliance on external currencies and streamlining financial exchanges. 

Strategic Sector Collaboration

Both countries witnessed the signing of 11 cooperation agreements, spanning critical areas such as semiconductors, disaster management, healthcare and peacekeeping cooperation. These agreements are part of a broader endeavour to facilitate high-value investment and knowledge sharing. 

A formal India-Malaysia CEO Forum meeting held alongside the official visit brought together industry leaders to explore opportunities in sectors including:

Advanced manufacturing

Digital economy and fintech

Healthcare and biotechnology

Green technologies and sustainable infrastructure

Connectivity and logistics systems 

Digital Payments and Connectivity

In a key development aimed at enhancing economic integration, Prime Minister Modi announced plans to roll out India’s Unified Payments Interface (UPI) in Malaysia, enabling seamless digital transactions between the two countries. This initiative is expected to benefit businesses, tourists, and expatriate communities by making cross-border payments more efficient. 

Both leaders also discussed expanding air and maritime connectivity to support trade and tourism, as well as reinforcing supply chains to improve the movement of goods and services across borders. 

Security and Regional Cooperation

In addition to economic topics, India and Malaysia reiterated commitments to work together on security challenges, including counter-terrorism, maritime security and defence cooperation. Shared concerns about regional stability and global peace were discussed as part of the broader strategic dialogue. 

The comprehensive discussions also included cooperation on education, technical and vocational training, and labour mobility — reflecting an inclusive approach to strengthening bilateral ties. 

People-to-People and Cultural Connections

During his visit, Modi also acknowledged the strong cultural links between the two nations. Emphasis was placed on the role of diaspora communities in Malaysia, particularly the Tamil Indian community, in fostering enduring social and cultural relationships