Strengthening Ties Amid Geopolitical Shifts: Anwar Ibrahim’s Landmark Visit to India

Prime Ministers Narendra Modi and Anwar Ibrahim, discussed several key issues, leading to the decision to elevate their strategic partnership to the level of a Comprehensive Strategic Partnership. The two countries also deliberated on trade relations, with bilateral trade in 2023 estimated at $16 billion, and the mobility of labor.

During Malaysian Prime Minister Anwar Ibrahim’s visit to India from August 19-21, 2024, several important agreements were signed, with both sides reaffirming their commitment to expanding cooperation in emerging areas such as digitalization, semiconductors, and Artificial Intelligence (AI).

This marked the first visit by a Malaysian Prime Minister to India since 2018 and Ibrahim’s inaugural visit. Bilateral ties had previously soured due to former Prime Minister Mahathir Mohammad’s critical comments on India’s revocation of Article 370 in Jammu and Kashmir and his criticism of the Citizenship Amendment Act (CAA). Given this backdrop, Ibrahim’s visit was seen as significant in resetting and strengthening relations between New Delhi and Kuala Lumpur amid shifting global economic and geopolitical dynamics.

Since assuming office, Ibrahim has faced the dual challenge of revitalizing Malaysia’s economy and navigating the complex geopolitical landscape, particularly amid escalating tensions between the US and China. While he has sought to deepen economic ties with China and has been critical of US policies toward China, Malaysia has also benefited from the strained US-China relations. This has led to significant investments from Western companies, including German chip manufacturer Infineon and US firms GlobalFoundries and Intel, particularly in Malaysia’s burgeoning semiconductor sector, as the country positions itself as a global semiconductor hub.

During the meeting between Prime Ministers Narendra Modi and Anwar Ibrahim, several key issues were discussed, leading to the decision to elevate their strategic partnership to the level of a Comprehensive Strategic Partnership. The two countries also deliberated on trade relations, with bilateral trade in 2023 estimated at $16 billion, and the mobility of labor. In 2023, India imported a significant amount of palm oil from Malaysia, with over one-fourth of Malaysia’s palm oil exports directed to India. Additionally, Malaysia exports white rice to India, and on August 22, 2024, India approved the export of 200,000 metric tonnes of Basmati rice to Malaysia.

As previously mentioned, several Memorandums of Understanding (MOUs) were signed in the presence of both Prime Ministers, covering various sectors, including Employment and Repatriation of Workers, Technologies, Tourism, and Financial Services.

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One of the notable aspects of Anwar Ibrahim’s visit was his request for India’s support for Malaysia’s membership in BRICS+, a China-dominated organization. Earlier this year, BRICS, which initially comprised Brazil, Russia, India, China, and South Africa, expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates. India welcomed this expansion, given its cordial ties with the new members. One of BRICS’ key objectives is to reduce reliance on the US dollar for trade and establish a BRICS currency. Although India has been cautious about the idea of a BRICS currency, it has pursued agreements for transactions in non-dollar currencies with several countries, including Malaysia. During Ibrahim’s visit, both sides emphasized the importance of promoting Rupee-Ringgit trade.

Ibrahim praised India’s foreign policy, particularly its “unique, multi-aligned” approach. Prime Minister Modi, in turn, highlighted Malaysia’s significance as a key partner for India in ASEAN and the Indo-Pacific region and expressed support for Malaysia’s upcoming presidency of ASEAN in 2025. The visit was seen as an effort to reset and strengthen ties between the two countries, which share important economic linkages and a growing strategic convergence, particularly in areas like artificial intelligence and semiconductors.

The broader geopolitical context of the visit is also significant. Both India and Malaysia maintain good relations with Washington but have diverged from the US on several issues. Malaysia, in particular, has had to carefully balance its ties with both the US and China. India’s continued purchase of oil from Russia and its stance following the Russia-Ukraine conflict have also been points of contention with Washington. During his discussions with Ibrahim, PM Modi addressed the South China Sea dispute and advocated for the “peaceful resolution of disputes.” Ibrahim, on his part, praised India’s foreign policy and remarked that “in the Indian Ocean world, we can create a stable and resilient backbone for the global economy.”

Ibrahim’s emphasis on Malaysia’s support for BRICS membership is particularly noteworthy. While BRICS is dominated by China, he appears keen to avoid being perceived as aligning too closely with Beijing. Overall, Ibrahim’s visit to India is expected to boost ties between New Delhi and Kuala Lumpur and is important within the broader geopolitical landscape.

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