Anwar said Bank Negara Malaysia and India’s central bank will continue to work closely to promote local currency settlement using the ringgit and rupee, aimed at facilitating more efficient and cost-effective transactions.
“Similarly, (the use of local currency) in the digital connectivity, energy and semiconductor industries,” he said during a joint press conference with his Indian counterpart Narendra Modi here today.
Modi is on an official visit to Malaysia from Feb 7 until today at Anwar’s invitation, reciprocating the Malaysian Prime Minister’s official visit to India in August 2024.
Anwar, who is also the finance minister, said that Malaysia-India bilateral trade is expected to extend beyond the US$18.59 billion (US$1 = RM3.94) achieved last year.
He said Malaysia, in the Asean context, certainly benefits immensely if the region could secure more ways and opportunities to collaborate with India.
According to him, it is very strategic and critical to advance and enhance relations between India and Malaysia.
“The deep historical ties, strong people-to-people linkages and ever-expanding economic cooperation will continue to deepen collaboration in all fields, trade and investment, semiconductor, digital, economic, trade in local currency, connectivity, energy, agriculture, food security, defence, education and security,” he said.
Furthermore, Anwar said, both countries agreed to expedite review and optimise the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA), as well as strengthen cooperation in high-value sectors including semiconductors, digital trade, green technology and advanced manufacturing.
“We also welcome the establishment of the Malaysia-India Digital Council (MIDC) and ongoing discussions on bilateral payment linkages between NPCI International Payments Ltd (NIPL) and PayNet Malaysia,” he said.
Meanwhile, Anwar said Malaysia also requested India’s consideration to further expand air traffic rights, including additional capacity and access to more secondary cities, to support growing demand for tourism, trade and people-to-people exchanges.
Additionally, he welcomed the progress by Petronas and Gentari in India to strengthen semiconductor value-chain cooperation and talent development.
Malaysia’s exports to India amounted to RM52.3 billion (US$12.24 billion) and imports totalled RM27.19 billion (US$6.35 billion), with key export items comprising palm oil and palm oil-based agricultural products, as well as electrical and electronic products, while imports mainly consisted of agricultural, petroleum and chemical products.