India and Malaysia Relations

Context

Recently, the External Affairs Minister of India visited Malaysia and this can be a way forward to India-Malaysia relations.

Key Highlights

• The minister held a bilateral meeting along with his counterpart in Malaysia. Both leaders held wide ranging discussions on bilateral cooperation including political, trade and economic, defence, digital, culture and education.
• Malaysia is a key accomplice for India in ASEAN and Act East Policy.
• The visit to Malaysia furnished an opportunity to reiterate dedication to similarly increase the Enhanced Strategic Partnership.

Overview of India and Malaysia Relations

• Diplomatic Relations: India and Malaysia established diplomatic relations shortly after Malaysia gained independence from British rule in 1957.
  • Both countries are participants of various international businesses, consisting of the United Nations, ASEAN (Association of Southeast Asian Nations), and the Non-Aligned Movement.
• Trade and Economic Relations: Malaysia is the 13th biggest trading partner for India even as India stands between the ten largest trading partners globally.
  • Furthermore, Malaysia has emerged as the third biggest trading companion for India from the ASEAN region and India is the most important trading partner for Malaysia in most of the countries of the Southeast Asian region.
  • Malaysia stands as both nations have engaged in numerous financial agreements consisting of the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA).
  • Both nations have agreed to conduct trade agreements in Indian rupees, reflecting an aim to bolster trade relations. 
• Defense and Security: The defense ties have progressively multiplied, marked by the signing of a defense cooperation memorandum in 1993, everyday security cooperation conferences, joint military exercises, and Malaysia’s interest in acquiring 18 new Indian light fighter jets, indicating potential growth in arms trade between the two nations.
• Strategic Partnership: India and Malaysia have aimed to strengthen their strategic partnership by diverse initiatives, which include high-level visits, joint commissions, and dialogues.
  • Both countries have expressed pursuits in enhancing cooperation in regions which includes security, counter-terrorism, maritime security, and cultural trade.
• Tourism and diaspora: Over the last two decades, tourism has been a cornerstone in fostering relations between India and Malaysia.
  • Various agreements, including the India-Malaysia visa waiver for diplomatic and professional passport holders, a tourism-focused memorandum of understanding in 2010, a bilateral agreement on employment and people’ welfare in 2009, and a revised air services agreement in 2017, have significantly contributed to the growth of tourism between the countries.
• Cultural Ties: Indian impact in Malaysia can be seen in numerous factors of Malaysian way of life, along with language, religion (Hinduism and Buddhism), structure, delicacies, and fairs.

Challenges

• Trade Disputes and Imbalances: Trade disputes and imbalances were a significant challenge in India-Malaysia relations.
  • Issues associated with tariffs, non-tariff limitations, and trade restrictions have occasionally strained economic ties between the two countries.
• Geopolitical Considerations: Both countries have diverse foreign coverage priorities and engagements with different countries, that may result in differences in strategic views.

Conclusion

• India and Malaysia completed 65 years of modern diplomatic relations in 2022. 
• The relations between India and Malaysia have grown from a Strategic Partnership to an Enhanced Strategic Partnership within the closing 10 years, with new cooperation in cultural international relations, digital financial system, and agricultural commodities forthcoming.

Source: The Hindu

UPSC Mains Practice Question

Q.Highlight the Indo-Malaysia relations in the changing geopolitical scenario. Discuss the nuances between the relation of two countries. (250 words)

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