On Sunday, February 8, 2026, India and Malaysia pledged to deepen their partnership in the semiconductor industry, boosting trade and security links during Prime Minister Narendra Modi's visit to Kuala Lumpur. Modi's arrival in Kuala Lumpur on Saturday, February 7, was marked by a red-carpet reception, signaling a new phase in bilateral relations.
"Along with AI and digital technologies, we will advance our partnership in semiconductors, health, and food security," Modi stated. He also affirmed India's commitment to ASEAN centrality and emphasized the importance of enhanced cooperation in emerging technologies following discussions with Malaysian Prime Minister Anwar Ibrahim.
Anwar Ibrahim stated that Malaysia and India would continue to expand collaboration in trade, investment, connectivity, and defense. He described the partnership as "truly comprehensive," expressing his government's commitment to swiftly executing the initiatives. He also voiced optimism that bilateral trade would exceed the $18.6 billion recorded the previous year and reaffirmed the shared aim of promoting local-currency settlements for cross-border transactions. To further facilitate diplomatic and economic ties, Anwar confirmed Malaysia's support for India's plan to open a new consulate in Kota Kinabalu, Sabah.
Malaysia is a significant player in the semiconductor industry, ranking sixth in worldwide exports, with the sector contributing approximately 25% of the country's gross domestic product. This makes Malaysia a valuable partner as India seeks to strengthen its position in the global semiconductor market.
In addition to semiconductors, both countries have agreed to strengthen cooperation in counter-terrorism, intelligence sharing, and maritime security. Modi emphasized the importance of deepening cooperation in these areas, stating, "In the security sector, we will strengthen cooperation in counter-terrorism, intelligence sharing, and maritime security. We will also make defense cooperation more comprehensive".
The two countries also inked a number of agreements on the second day of Modi's official visit, with Modi and Ibrahim witnessing the exchange of 11 pacts in Putrajaya, targeting semiconductor growth and peace efforts. Agreements spanned across areas including health care, national security and labor.
Modi also spoke of the "shared love for the Tamil language" that binds the two countries, as both sides pushed to deepen cultural, economic and strategic ties in Kuala Lumpur. "Shared love for the Tamil language also connects India and Malaysia. In Malaysia, the strong and living presence of Tamil can be seen in education, media and cultural life" Modi said.
India is also seeking to boost defense ties, and was in talks with Malaysia on a potential sale of Dornier aircraft as well as servicing and upgrades to Scorpene-class submarines and Sukhoi Su-30 fighter jets, a ministry official said.
The visit underscores the strengthening Comprehensive Strategic Partnership between India and Malaysia, initially elevated in August 2024. Modi's visit, his first foreign visit of 2026, has paved the way for enhanced collaboration in various sectors, promising a deeper and more robust relationship between the two nations.
