INDIA AND MALAYSIA RELATION

About:

• Both leaders announced the decision to upgrade the 2010 Strategic Partnership, which had been made an ‘Enhanced Strategic Partnership’ in 2015, along with a number of agreements and MoUs signed in their presence.
  Š These include MoUs on workers’ mobility, digital technology, culture, tourism, sports, and education.
• The two Prime Ministers also discussed geopolitical challenges, including the current conflicts and tensions in the Indo-Pacific region.

Significance:

• Diplomatic Relations: India and Malaysia established diplomatic relations shortly after Malaysia gained independence from British rule in 1957.
  Š Both countries are members of various international organizations, such as the United Nations, ASEAN (Association of Southeast Asian Nations), and the Non Aligned Movement.
• Trade and Economic Relations: Malaysia is the 13th largest trading partner for India while India stands amongst the 10 largest trading partners globally.
  Š Furthermore, Malaysia has emerged as the third largest trading partner for India from the ASEAN region and India is the largest trading partner for Malaysia among the countries of the Southeast Asian region.
  Š Malaysia stands as an important trade partner, as both countries have engaged in various economic agreements such as the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA).
  Š Both countries have agreed to conduct trade settlements in Indian rupees, reflecting an intention to bolster trade relations

Défense and Security: The Défense ties have steadily expanded, marked by the signing of a Défense cooperation memorandum in 1993, regular Défense cooperation meetings, joint military exercises, and Malaysia’s interest in acquiring
18 new Indian light fighter jets, indicating potential growth in arms trade between the two nations.

• Strategic Partnership: India and Malaysia have aimed to strengthen their strategic partnership through various initiatives, including high-level visits, joint commissions, and dialogues.
• Š Both countries have expressed interests in enhancing cooperation in areas such as defense , counter-terrorism, maritime security, and cultural exchanges.
• ASEAN Centrality: Malaysia holds a crucial position in expanding India’s trade with ASEAN, aligning with India’s Act East Policy, advancing maritime connectivity in the Strait of Malacca and South China Sea, and supporting ASEAN’s Indo-Pacific Perspective (AOIP) and the Indo-Pacific Initiative (IPOI).
• Tourism and diaspora: Over the last two decades, tourism has been a cornerstone in fostering relations between India and Malaysia.
  Š Various agreements, including the India-Malaysia visa waiver for diplomatic and official passport holders, a tourism-focused memorandum of understanding in 2010, a bilateral agreement on employment and workers’ welfare in 2009, and a revised air services agreement in 2017, have significantly contributed to the growth of tourism between the nations.
• Cultural Ties: Indian influence in Malaysia can be seen in various aspects of Malaysian culture, including language, religion (Hinduism and Buddhism), architecture, cuisine, and festivals.

Challenges:

• Trade Imbalance: India experiences a trade deficit with Malaysia, highlighting the need for increased Indian exports to balance the relationship and diversify trade.
• Political Dynamics: Domestic political changes in Malaysia can affect bilateral relations, leading to fluctuations in policy and engagement levels.
• Cultural and Ethnic Tensions: Differences in cultural and ethnic identities may lead to misunderstandings, impacting people to-people connections and cooperation.
• Geopolitical Rivalries: The influence of larger regional players, particularly China, can complicate India’s strategic interests in Malaysia, requiring careful diplomatic navigation.

Way Forward:

• Strengthen Economic Cooperation: Focus on enhancing trade agreements that promote Indian exports, especially in sectors like technology, pharmaceuticals, and agriculture.
• Enhance Diplomatic Engagement: Foster consistent high level diplomatic dialogues to navigate political changes and reinforce commitments to mutual interests.
• Cultural Exchange Programs: Implement initiatives to promote cultural exchanges, tourism, and educational collaborations to build stronger people-to-people ties.
• Collaborate on Regional Security: Work together on regional security initiatives and counter-terrorism efforts to address common threats and ensure stability in the region.

INDIA AND MALAYSIA RELATION

#INDIAANDMALAYSIARELATION

CBL Practice Questions for Prelims

Which of the following agreements was signed between India and Malaysia to enhance economic cooperation?

A) Comprehensive Economic Cooperation Agreement (CECA)
B) Free Trade Agreement (FTA)
C) Bilateral Investment Treaty (BIT)
D) Strategic Partnership Agreement

Answer: A) Comprehensive Economic Cooperation Agreement (CECA)

CBL Mains Practice Question

Analyze the strategic significance of India-Malaysia relations in the context of the Indo-Pacific region.

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