Malaysian Prime Minister Anwar Ibrahim to Seek Indian Investments to Revitalize Economy
Malaysian Prime Minister Anwar Ibrahim is set to embark on an official visit to India, with a primary focus on securing Indian investments to help revitalize Malaysia’s struggling economy. The visit, which marks the first prime-ministerial trip from Malaysia to India since 2018, will see Anwar meeting with Indian Prime Minister Narendra Modi on August 20.
Enhancing Collaboration in the Start-up Sector and Digital Technology
During Anwar’s visit, both countries are said to be working towards a substantial agreement in the start-up sector. Malaysian start-ups are increasingly utilizing India’s advanced digital technology expertise, resulting in Indian companies dominating the digital payment market in Malaysia, with a 70% share in the B2B segment. Anwar aims to explore further collaboration in this area, which holds immense potential for mutual growth and advancement.
Focusing on Electric Vehicles and Artificial Intelligence
Two significant areas of interest for Malaysia have emerged through conversations with industry leaders and policymakers in Kuala Lumpur. The first is leveraging India’s National Skill Development program to enhance Malaysia’s workforce skills and capabilities. The second is seeking collaboration and support from India in the Electric Vehicle (EV) and Artificial Intelligence (AI) sectors. Despite government efforts, Malaysia’s EV industry has seen slow demand, especially after Tesla withdrew plans to manufacture EVs in the country. Anwar is expected to seek Indian investments that can help develop and accelerate the growth of this promising yet underdeveloped sector in Malaysia.
Resolving Palm Oil Import Issues and Reviewing Economic Cooperation
In addition to the aforementioned areas of interest, Anwar’s visit will likely address the import of Malaysian palm oil, which was negatively affected by former Prime Minister Mahathir Mohamad’s stance on Kashmir. Anwar aims to resolve this issue with Prime Minister Modi. Between January and August 2023, India imported palm oil worth 7.08 billion Malaysian Ringgit from Malaysia. Both nations also plan to review their Comprehensive Economic Cooperation Agreement for potential inclusion of new trade items, further strengthening economic ties and encouraging bilateral trade.
Looking Ahead to India-Malaysia Collaboration
The visit of Malaysian Prime Minister Anwar Ibrahim to India signifies the importance both countries place on enhancing economic cooperation and exploring areas for mutual growth and collaboration. By focusing on key sectors such as start-ups, digital technology, EVs, AI, and resolving trade-related issues, the leaders of Malaysia and India hope to strengthen their economic ties, fostering an environment of innovation and economic revitalization. As both nations work towards common goals, the prospects for partnership between Malaysia and India continue to look promising. And the outcomes of Anwar’s visit may have far-reaching effects on not only the bilateral relationship but also the development and progress of both nations.
