Opinion PM Modi in Malaysia: Future-proofing an ‘Act East’ partnership
By continuing joint military exercises like Harimau Shakti and maritime deployments, India and Malaysia are signalling that they are part of the guardians of the shipping lanes in the Malacca Strait and the wider Indo-Pacific
The true test of any joint statement lies in the follow-through. To ensure these outcomes aren’t relegated to dusty archives, the visit empowered the India-Malaysia CEO Forum.(Photo: X/@narendramodi) The visit of Prime Minister Narendra Modi to Malaysia on February 7-8 was more than a routine diplomatic exercise; it was a “reboot” of a relationship that has found its second wind. In the corridors of Putrajaya, Modi and PM Anwar Ibrahim moved beyond the pleasantries of shared history to ink a future that is unapologetically digital, industrial, and strategically aligned. The positive outcomes of this visit can be distilled into three transformative pillars: Economic future-proofing, financial sovereignty, and strategic security.
The most significant outcome is the formalisation of the Malaysia-India Digital Council (MIDC) and an Exchange of Notes on Semiconductors. While the world has talked about “China Plus One” strategies, this visit puts it into practice. Malaysia is a global packaging and testing powerhouse, while India is rapidly scaling its design and fabrication ecosystem.
These outcomes will be realised through a “talent-first” approach. By linking the Advanced Semiconductor Academy of Malaysia with IIT-Madras Global, the two nations are creating a shared workforce. This isn’t just about building chips; it’s about ensuring that the next generation of engineers in both Chennai and Penang are working on the same technological architecture.
Perhaps the most immediate “win” for the common citizen, be it a student in Cyberjaya or a tourist in Kuala Lumpur, is the integration of NIPL (UPI) and PayNet Malaysia. By allowing cross-border payments through a seamless digital link, the two countries are bypassing expensive traditional remittance channels.
The commitment by the Reserve Bank of India and Bank Negara Malaysia to encourage trade in local currencies (INR and MYR) is aimed at financial resilience. As global markets face dollar volatility, realising this outcome will require Indian and Malaysian businesses to move away from “dollar-default” invoicing. If successful, this will lower transaction costs for SMEs, making Indian textiles more affordable in Malaysia and Malaysian palm oil more competitive in India.
The visit also marked an effort to consolidate the security partnership. The establishment of a Strategic Affairs Working Group (SAWG) and a dedicated Su-30 Forum — since both nations operate the Russian-origin Sukhoi jets — shows a pragmatic military synergy. The realisation of these security goals will be seen in 2026 through the Expert Working Group on Counter-Terrorism, which Malaysia will host.
By continuing joint military exercises like Harimau Shakti and maritime deployments, India and Malaysia are signalling that they are part of the guardians of the shipping lanes in the Malacca Strait and the wider Indo-Pacific. For a cautious Malaysia, this is a shuffle forward. Perhaps they will consider buying Indian defence equipment too.
Beyond the MoUs, the establishment of the Thiruvalluvar Centre at Universiti Malaya and the announcement of dedicated scholarships for Malaysian nationals provide a cultural anchor to the high-tech deals. This ensures that the relationship isn’t just a transaction between two governments, but a conversation between two peoples. Student exchanges are on a low ebb and need nudging. Tourism is flourishing due to the inclusion of tier 2 cities in air connectivity. A million Indians visited Malaysia, and 30,000 Malaysians visited India in 2024.
The true test of any joint statement lies in the follow-through. To ensure these outcomes aren’t relegated to dusty archives, the visit empowered the India-Malaysia CEO Forum. By putting the private sector in the driver’s seat — specifically in areas like Green Hydrogen (GENTARI) and affordable healthcare — the leaders have ensured that market forces, rather than just bureaucracy, will drive the partnership. The G2G partnership has established enabling agreements. Now, industry and academia must step up. As Prime Minister Modi left Kuala Lumpur, he left behind a blueprint for a partnership that is no longer just “Acting East”, but “Growing East”.
Singh is former ambassador to Germany, Indonesia, ASEAN, Ethiopia and the African Union. His recent book is The Durian Flavour: India and ASEAN after a decade of the Act East Policy
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