India, Malaysia Agree To Boost Trade, Local Currency Settlements And Defence Cooperation

India and Malaysia have agreed to work towards strengthening bilateral trade, expanding the use of local currencies in cross-border transactions, and deepening cooperation in defence and security during Prime Minister Narendra Modi’s visit to Malaysia, officials said.

The discussions focused on boosting two-way trade by easing market access, improving supply chain linkages, and encouraging greater participation by small and medium enterprises from both countries. Leaders from both sides underlined the need to diversify trade beyond traditional sectors and explore new opportunities in manufacturing, digital services, renewable energy, and critical minerals.

A key area of emphasis was the increased use of local currencies for trade settlement, which both countries see as a way to reduce transaction costs and limit exposure to global currency volatility. Officials noted that encouraging invoicing and payments in the Indian rupee and Malaysian ringgit could provide greater stability for businesses and support long-term trade growth.

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Defence and security cooperation also featured prominently in the talks. India and Malaysia agreed to enhance collaboration in areas such as maritime security, defence training, and information sharing, particularly in the strategically important Indo-Pacific region. The two sides reiterated their commitment to freedom of navigation, respect for international law, and regional stability.

The visit also reviewed progress in broader strategic cooperation, including people-to-people ties, education, tourism, and cultural exchanges. Malaysia remains an important partner for India within ASEAN, while India is seen as a key economic and strategic partner for Malaysia. Officials said the outcomes of the visit are expected to provide fresh momentum to the bilateral relationship and translate into tangible benefits for businesses and citizens in both countries.

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