India and Malaysia Deepen Semiconductor Partnership Amidst Broader Strategic Cooperation

Kathmandu. India and Malaysia on Sunday committed to further deepening their mutual partnership in the semiconductor sector during Prime Minister Narendra Modi's visit to Malaysia. As neighboring nations in the Indian Ocean region move forward to expand trade and security ties, both countries signaled a priority for technology-based collaboration.

Prime Minister Modi arrived in Malaysia on Saturday. This is his first visit in over a decade. During the visit, he signed agreements with Malaysian Prime Minister Anwar Ibrahim on cooperation in various sectors, including renewable energy, healthcare, and artificial intelligence (AI).

Prime Minister Modi stated that partnership would be advanced in AI and digital technology, as well as in semiconductors, health, and food security. He noted that these areas are of long-term strategic importance for both nations.

Prime Minister Anwar Ibrahim described the meeting and exchange between India and Malaysia as extremely significant and strategic. Speaking at a press conference in Putrajaya, Malaysia's administrative capital, he expressed confidence that this would further strengthen and promote relations between the two countries.

According to Malaysian government data, Malaysia ranks sixth globally in semiconductor exports. This sector contributes about 25 percent to Malaysia's Gross Domestic Product, highlighting its economic significance.

India's Ministry of External Affairs noted that Malaysia, a Southeast Asian nation, possesses a strong semiconductor ecosystem. The Ministry indicated that Malaysia has about 30 to 40 years of experience in this sector, which could create useful opportunities for India.

The Ministry also shared that Indian companies are keen to collaborate with Malaysia in areas ranging from research and development to manufacturing and testing plants. For instance, Indian and Malaysian media reported in June that Tata Electronics was in talks with global semiconductor companies to acquire a fabrication or outsourced semiconductor assembly and testing plant in Malaysia.

According to the India Brand Equity Foundation, last year India primarily exported goods worth $7.32 billion to Malaysia, mainly in engineering and petroleum products. Conversely, India imported minerals, vegetable oils, and electrical machinery and equipment worth $12.54 billion from Malaysia.

Malaysia also has a large population of Indian-origin citizens. Official statistics show that approximately 6.8 percent of the total population, around 3 million people, are of Indian origin.

Prime Minister Modi referred to this diaspora as a 'living bridge' between India and Malaysia, emphasizing their crucial role. He expressed confidence that steps taken for the welfare of Non-Resident Indians would provide a humanitarian foundation for the relationship between the two countries.