KUALA LUMPUR – Malaysia and India have agreed to fast‑track the use of the ringgit and rupee in bilateral trade and investment, Prime Minister Datuk Seri Anwar Ibrahim announced today.
Anwar said Bank Negara Malaysia and India’s central bank will intensify cooperation to promote local currency settlement, aimed at making transactions more efficient and cost‑effective.
“Similarly, (the use of local currency) in the digital connectivity, energy and semiconductor,” he said during a joint press conference with Indian Prime Minister Narendra Modi, who is on an official visit to Malaysia from Feb 7 to 8, reciprocating Anwar’s trip to India in August 2024.
Anwar, also Finance Minister, noted that Malaysia‑India trade is expected to surpass the US$18.59 billion (US$1 = RM3.94) recorded last year. He stressed that ASEAN as a region stands to benefit greatly from deeper collaboration with India.
“It is very strategic and critical to advance and enhance relations between India and Malaysia. 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, semiconductor, digital, economic, trade in local currency, connectivity, energy, agriculture, food security, defence, education and security,” he said.
The two nations, which established diplomatic ties in 1957, elevated relations to a comprehensive strategic partnership in 2024.
Anwar added that both sides agreed to expedite review and optimisation of the Malaysia‑India Comprehensive Economic Cooperation Agreement (MICECA), while strengthening cooperation in high‑value sectors such as semiconductors, digital trade, green technology and advanced manufacturing.
“We also welcome the establishment of the Malaysia‑India Digital Council (MIDC) and ongoing discussions on bilateral payment linkages between NPCI International Payments Ltd (NIPL) and PayNet Malaysia,” he said.
Malaysia also requested India’s consideration to expand air traffic rights, including additional capacity and access to more secondary cities, to support rising demand for tourism, trade and people‑to‑people exchanges.
Additionally, Anwar welcomed progress by Petroliam Nasional Bhd (Petronas) and Gentari in India to strengthen semiconductor value‑chain cooperation and talent development.
Malaysia’s exports to India amounted to RM52.3 billion (US$12.24 billion), while imports totalled RM27.19 billion (US$6.35 billion). Key exports included palm oil and palm‑oil based agricultural products, as well as electrical and electronic goods, while imports were dominated by agricultural, petroleum and chemical products. - February 8, 2026
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