India and Malaysia pledge to deepen semiconductor ties and boost trade during Prime Minister Narendra Modi’s landmark visit to Putrajaya
PUTRAJAYA: India and Malaysia pledged to deepen their semiconductor partnership as the Indian Ocean neighbours ramp up trade and security links.
Prime Minister Narendra Modi touched down in Malaysia on Saturday for his first visit in more than a decade. He inked a number of agreements with Malaysian counterpart Anwar Ibrahim, including deals on renewable energy, health care and artificial intelligence.
“Along with AI and digital technologies, we will advance our partnership in semiconductors, health, and food security,” Modi said.
“This meeting and these exchanges are very vital, very strategic and critical to advance and enhance relations between India and Malaysia,” Anwar added at a news conference.
Malaysia ranks sixth in worldwide exports of semiconductors, with the sector contributing around 25% of gross domestic product. India’s foreign ministry said the Southeast Asian nation had a “very strong semiconductor ecosystem” built over 30 to 40 years.
“Our companies are… interested in collaborating with Malaysia,” the ministry stated ahead of Modi’s arrival. This includes collaboration in research and development and building manufacturing and testing plants.
For instance, Tata Electronics was in talks last June with global semiconductor companies to buy a fabrication or outsourced semiconductor assembly or test plant in Malaysia. Last year India exported USD 7.32 billion in goods to Malaysia, mainly engineering and petroleum products.
Imports from Malaysia amounted to USD 12.54 billion, consisting mainly of minerals, vegetable oil and electrical machinery. Malaysia also has a large Indian-origin population, around 6.8% or almost three million people.
“This living bridge… of diaspora is a great strength for us. The steps taken for their welfare lend a human foundation to our relationship,” Modi said.
