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MALAYSIA and India have recognised the progress made by Petroliam Nasional Berhad (Petronas) and Gentari in advancing India’s renewable energy and green hydrogen sector, underscoring the potential for further collaboration in large-scale solar energy initiatives.
In a joint statement issued today, Prime Minister Datuk Seri Anwar Ibrahim and his Indian counterpart Narendra Modi said the partnership could leverage Malaysia’s expertise to accelerate clean energy solutions and help both countries achieve their net-zero ambitions.
Prime Minister Anwar held a bilateral meeting with Modi at the Seri Perdana Complex, describing India’s leadership in renewable energy, including the establishment of the International Solar Alliance, as a model for regional cooperation. “Malaysia appreciates India’s initiative in establishing the International Solar Alliance,” the statement said.
The two leaders also emphasised the strategic importance of the semiconductor industry in the global technology landscape, highlighting the mutual benefits of closer cooperation.
“They emphasised the importance of deepening cooperation to strengthen the semiconductor value chain, focusing on technological innovation, workforce development, and supply chain stability to build a resilient and competitive ecosystem,” it said.
Specific initiatives cited included partnerships between IIT-Madras Global and the Advanced Semiconductor Academy of Malaysia, as well as collaboration between the Indian Electronics and Semiconductor Association and the Malaysia Semiconductor Industry Association.
On digital cooperation, the leaders welcomed the formalisation of the Malaysia–India Digital Council (MIDC) as a platform to foster innovation, explore joint projects in fintech, e-governance, cybersecurity, artificial intelligence, digital public infrastructure, and other emerging technologies.
Anwar and Modi described MIDC as a strategic mechanism to strengthen bilateral digital engagement and support the digital transformation agendas of both nations.
They also lauded the collaboration between NPCI International Limited and PayNet Malaysia to establish bilateral payment linkages. “They noted that this integration will significantly enhance the ease of doing business and provide seamless, low-cost remittance and payment solutions for tourists, students, and small businesses, thereby enabling closer economic and people-to-people connectivity between Malaysia and India,” the statement added.
In a related announcement, Prime Minister Anwar said Malaysia and India have agreed to expedite the use of the ringgit and rupee in bilateral trade and investment. “Bank Negara Malaysia and India’s central bank will continue to work closely to promote local currency settlement using the ringgit and rupee, aimed at facilitating more efficient and cost-effective transactions,” he said.
“Similarly (the use of local currency) in the digital connectivity, energy and semiconductor,” he added during a joint press conference.
Modi is in Malaysia on an official visit from February 7 to 8, reciprocating Anwar’s visit to India in August 2024. Anwar, who also serves as Finance Minister, said Malaysia-India bilateral trade is expected to exceed the US$18.59 billion recorded last year, noting that deeper regional collaboration with India brings significant strategic advantages.
“The deep historical ties, strong people-to-people linkages and ever-expanding economic cooperation will continue to deepen collaboration in all fields — trade and investment, semiconductors, digital, trade in local currency, connectivity, energy, agriculture, food security, defence, education and security,” he said.
Both leaders agreed to review and optimise the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) and strengthen cooperation in high-value sectors including semiconductors, digital trade, green technology, and advanced manufacturing. “We also welcome the establishment of the Malaysia-India Digital Council and ongoing discussions on bilateral payment linkages between NPCI International Payments Ltd and PayNet Malaysia,” Anwar said.
Anwar added that Malaysia has requested India to consider expanding air traffic rights, including additional capacity and access to secondary cities, to support tourism, trade, and people-to-people exchanges. - February 8, 2026
