KUALA LUMPUR: India and Malaysia have officially elevated their bilateral relationship to a Comprehensive Strategic Partnership following Prime Minister Narendra Modi’s high-profile visit to Malaysia. The two nations signed a total of 11 agreements and Memorandums of Understanding (MoUs), covering a diverse range of sectors from digital finance to semiconductor manufacturing.

Economic and Digital Integration

In a major move to de-dollarize bilateral trade, both countries agreed to promote local currency trade settlement using the Indian Rupee (INR) and the Malaysian Ringgit. This initiative is expected to lower transaction costs and reduce dependence on third-party currencies. Furthermore, a formal agreement was reached to link India’s Unified Payments Interface (UPI) with Malaysia’s PayNet, enabling seamless cross-border digital payments for tourists and businesses alike.

Technology and Industry Cooperation

The visit also saw the formalization of the Malaysia-India Digital Council (MIDC) framework, which will oversee policy cooperation in Artificial Intelligence (AI) and Digital Public Infrastructure (DPI). Additionally, both sides pledged to cooperate in the semiconductor value chain, leveraging India’s growing design ecosystem and Malaysia’s established backend manufacturing capabilities.

Defense and Security

To deepen security ties, the Strategic Affairs Working Group (SAWG) was established under the existing Malaysia-India Defence Cooperation Committee (MIDCOM). The two nations also signed an MoU on Anti-Corruption to combat transnational financial crimes and institutionalized a regular Security Dialogue.

Social and Cultural Milestones

Key social agreements include a guarantee of social security benefits for Indian workers in Malaysia through an agreement between ESIC and PERKESO. On the cultural front, a permanent Thiruvalluvar Centre for Indian Studies will be established at Universiti Malaya to promote the study of the Tamil language and heritage.

Other Significant Current Affairs (Last 24 Hours):

• Strategic Petroleum Reserve (SPR): Union Minister Hardeep Singh Puri informed Parliament that India’s strategic oil reserves, including stocks held by refineries, can now sustain the country for 74 days in the event of a global crisis.
• India-Seychelles Relations: India has announced a $175 million economic package for Seychelles to support maritime security and infrastructure development.
• Performance-Based Bureaucracy: The Centre has introduced a new evaluation framework for Union Secretaries, where performance will be assessed based on measurable outcomes rather than traditional file movement.
• Sports: Pakistan has officially withdrawn its boycott call, confirming that the India-Pakistan T20 World Cup match will proceed as scheduled on February 15 in Colombo.