Malaysia and India agree to accelerate the use of local currencies in bilateral trade, aiming to cut transaction costs and deepen economic ties.
PUTRAJAYA: Malaysia and India have agreed to expedite the use of the ringgit and rupee in bilateral trade and investment.
Prime Minister Datuk Seri Anwar Ibrahim said the nations’ central banks will work closely to promote local currency settlement for more efficient transactions.
“This also applies to digital connectivity, energy and semiconductors,” he said during a joint press conference with Indian Prime Minister Narendra Modi.
Anwar said bilateral trade is expected to grow beyond the US$18.59 billion achieved last year.
He described advancing relations with India as both strategic and critical for Malaysia within the ASEAN context.
The two countries elevated their long-standing ties to a comprehensive strategic partnership last year.
Anwar said collaboration will deepen in trade, semiconductors, digital economy, energy, agriculture and defence.
Both sides also agreed to review and optimise the Malaysia-India Comprehensive Economic Cooperation Agreement.
Cooperation will be strengthened in high-value sectors like semiconductors, digital trade and green technology.
“We welcome the establishment of the Malaysia-India Digital Council,” Anwar added.
He also noted ongoing discussions on bilateral payment linkages between Indian and Malaysian financial networks.
Malaysia has requested India to expand air traffic rights to support growing tourism and trade.
Anwar welcomed progress by Petronas and Gentari in strengthening semiconductor cooperation in India.
Malaysia’s exports to India last year totalled RM52.3 billion, while imports were RM27.19 billion.
Key exports included palm oil and electrical products, with imports comprising agricultural and petroleum good
