India and Malaysia Comprehensive Strategic Partnership

Syllabus: GS2/IR

Context

• India and Malaysia decided to upgrade ties to a ‘Comprehensive Strategic Partnership’ during talks between Prime Minister Narendra Modi and Malaysian Prime Minister Anwar Ibrahim.

About

• Both leaders announced the decision to upgrade the 2010 Strategic Partnership, which had been made an ‘Enhanced Strategic Partnership’ in 2015, along with a number of agreements and MoUs signed in their presence.
  • These include MoUs on workers’ mobility, digital technology, culture, tourism, sports, and education. 
• The two Prime Ministers also discussed geopolitical challenges, including the current conflicts and tensions in the Indo-Pacific region.

Overview of India and Malaysia Relations

• Diplomatic Relations: India and Malaysia established diplomatic relations shortly after Malaysia gained independence from British rule in 1957.
  • Both countries are members of various international organizations, such as the United Nations, ASEAN (Association of Southeast Asian Nations), and the Non-Aligned Movement.
• Trade and Economic Relations: Malaysia is the 13th largest trading partner for India while India stands amongst the 10 largest trading partners globally.
  • Furthermore, Malaysia has emerged as the third largest trading partner for India from the ASEAN region and India is the largest trading partner for Malaysia among the countries of the Southeast Asian region.
  • Malaysia stands as an important trade partner, as both countries have engaged in various economic agreements such as the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA).
  • Both countries have agreed to conduct trade settlements in Indian rupees, reflecting an intention to bolster trade relations. 
• Defense and Security: The defense ties have steadily expanded, marked by the signing of a defense cooperation memorandum in 1993, regular defense cooperation meetings, joint military exercises, and Malaysia’s interest in acquiring 18 new Indian light fighter jets, indicating potential growth in arms trade between the two nations.
• Strategic Partnership: India and Malaysia have aimed to strengthen their strategic partnership through various initiatives, including high-level visits, joint commissions, and dialogues.
  • Both countries have expressed interests in enhancing cooperation in areas such as defense, counter-terrorism, maritime security, and cultural exchanges.
• ASEAN Centrality: Malaysia holds a crucial position in expanding India’s trade with ASEAN, aligning with India’s Act East Policy, advancing maritime connectivity in the Strait of Malacca and South China Sea, and supporting ASEAN’s Indo-Pacific Perspective (AOIP) and the Indo-Pacific Initiative (IPOI).
• Tourism and diaspora: Over the last two decades, tourism has been a cornerstone in fostering relations between India and Malaysia.
  • Various agreements, including the India-Malaysia visa waiver for diplomatic and official passport holders, a tourism-focused memorandum of understanding in 2010, a bilateral agreement on employment and workers’ welfare in 2009, and a revised air services agreement in 2017, have significantly contributed to the growth of tourism between the nations.
• Cultural Ties: Indian influence in Malaysia can be seen in various aspects of Malaysian culture, including language, religion (Hinduism and Buddhism), architecture, cuisine, and festivals.

Challenges

• Trade Disputes and Imbalances: Issues related to tariffs, non-tariff barriers, and trade restrictions have occasionally strained economic ties between the two countries.
• Domestic Politics: Internal political developments in either country often strain relations. For example, changes in government or political leadership lead to shifts in foreign policy priorities.
• Geopolitical Considerations: Both countries have diverse foreign policy priorities and engagements with other nations, which lead to differences in strategic perspectives.
• South China Sea: While not directly involved, Malaysia’s stance on South China Sea disputes impact its broader regional strategies.
  • India’s interest in regional stability and maritime security sometimes align or conflict with Malaysia’s positions.

Conclusion

• India and Malaysia completed 65 years of modern diplomatic relations in 2022. 
• The relations between India and Malaysia have grown from a Strategic Partnership to an Enhanced Strategic Partnership and to a comprehensive partnership now, with new cooperation in cultural diplomacy, digital economy, and agricultural commodities forthcoming.

Source: TH