Digital economy takes centre stage as India, Malaysia push faster, deeper partnership
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India and Malaysia will deepen cooperation in digital technologies, artificial intelligence, and emerging sectors such as semiconductors, health and food security, Prime Minister Narendra Modi said today, signalling a sharper technology-led push in bilateral ties as part of a broader economic and strategic reset.
Speaking alongside Malaysian Prime Minister Anwar Ibrahim during a joint press statement in Kuala Lumpur, Modi said mutual investments in the digital economy, biotechnology and IT have already gained momentum, and the two countries had now decided to bring “unprecedented speed and depth” to the partnership.
“Along with AI and digital technologies, we will advance partnerships in semiconductors, health, and food security,” Modi said, underlining technology as a key pillar of future cooperation. He added that the CEO Forum held earlier in the day had opened new avenues for trade and investment and would help “pave the way for economic transformation through strategic trust.”
The visit marks Modi’s first foreign trip of 2026 and comes after he was unable to attend the ASEAN Summit in Malaysia last year. Calling Anwar Ibrahim a “close friend”, Modi said the relationship between the two countries had received fresh momentum in recent years, aided by stronger political engagement.
January 2026
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India and Malaysia are maritime neighbours with deep historical and cultural ties, Modi said, noting that Malaysia is home to the world’s second-largest population of people of Indian origin. “Our civilisations are linked by shared cultural heritage and democratic values,” he said.
People-to-people ties and security cooperation
Beyond technology and trade, Modi highlighted concrete steps aimed at easing mobility and improving the everyday lives of citizens. These include a social security agreement to protect Indian workers in Malaysia, a gratis e-visa regime for tourism, and the rollout of India’s Unified Payments Interface (UPI) in Malaysia.
“Any partnership succeeds only when the benefits reach the people directly,” he said, describing the nearly three million-strong Indian diaspora in Malaysia as a “living bridge” and the relationship’s “greatest strength”.
On security, Modi said the two sides would step up cooperation in counter-terrorism, intelligence sharing and maritime security, while also expanding defence ties. “In this environment of global instability, the growing friendship between India and Malaysia is of vital importance to both countries,” he said.
The Indo-Pacific region is emerging as the world's growth engine, he added.
Modi reiterated India’s support for ASEAN centrality and congratulated Malaysia on its successful ASEAN chairmanship. Both sides agreed that the review of the ASEAN–India Trade in Goods Agreement (ITIGA) should be completed at the earliest.
Touching on global governance, Modi said both countries shared the view that reform of international institutions was necessary to address contemporary challenges. On terrorism, his message was unequivocal: “No double standards. No compromise.”
The two countries also announced steps to deepen cultural and educational ties, including an audio-visual agreement focused on film and music, particularly Tamil cinema, expanded university exchanges, startup linkages, and skill development initiatives. India will also open a new consulate in Malaysia to support the growing relationship.