India-Malaysia Comprehensive Strategic Partnership

Joint Statement on Enhanced Malaysia-India Strategic Partnership (2015)
Date: November 23, 2015

Context:
On November 23, 2015, Malaysian Prime Minister Dato' Sri Mohd Najib Tun Abdul Razak welcomed Indian Prime Minister Shri Narendra Modi to Malaysia. This visit followed Modi's participation in the ASEAN–India Summit and the East Asia Summit on November 21-22, 2015. The two leaders held official talks in Putrajaya and inaugurated the Torana Gate in Kuala Lumpur, symbolizing the enduring friendship between India and Malaysia.

Key Outcomes of the Official Talks: 2015

1. Strengthening Bilateral Relations:
   Both Prime Ministers acknowledged the significant progress in India-Malaysia relations and committed to advancing their Strategic Partnership, which was established in October 2010.
2. Cultural and Educational Initiatives:
   They celebrated the growing cultural and educational ties, including the successful Festival of India in Malaysia 2015. Future initiatives include enhancing student exchanges and mutual recognition of universities and degrees.
3. Economic and Trade Cooperation:
   The leaders agreed to deepen trade and investment ties, promote collaboration in infrastructure and construction, and energize the India-Malaysia CEOs' Forum to enhance business links.
4. Defence and Security:
   Plans were made to enhance defence cooperation through regular dialogues, joint exercises, and information sharing on maritime and humanitarian issues.
5. Human Resources and Health:
   Both nations welcomed the contributions of Indian workers in Malaysia and agreed to increase cooperation in traditional medicine, including Ayurveda and Siddha practices.
6. Science and Technology:
   They agreed to set up a Joint Working Group on New and Renewable Energy to strengthen energy security and promote collaboration in this sector.
7. Public Administration:
   Cooperation in public administration was highlighted , with a focus on implementing decisions from the recent Joint Working Group Meeting.
8. Regional and International Cooperation:
   Both leaders highlighted the importance of regional engagement and welcomed initiatives such as the ASEAN–India Trade in Services and Investment Agreements. They also called for UN reforms and supported the post-2015 Development Agenda with a focus on poverty eradication.

India-Malaysia Bilateral Relations

Historical Background

1. Diplomatic Relations: India established diplomatic relations with the Federation of Malaya (now Malaysia) in 1957.
2. Historical Ties: In the 1960s, strong ties were cultivated due to the personal rapport between Indian Prime Minister Jawaharlal Nehru and Malaysian Prime Minister Tunku Abdul Rahman Putra.
3. Recent Developments: In the 2000s, Prime Ministers Abdullah Badawi (2004-2009) and Dato’ Seri Mohd. Najib Tun Abdul Razak significantly advanced relations with India.

People-to-People Relations

1. Indian Diaspora: Malaysia hosts approximately 2.75 million Persons of Indian Origin (PIOs), the third-largest Indian diaspora globally. This community is predominantly Tamil-speaking, with smaller groups speaking Telugu, Malayalam, Punjabi, Bengali, Gujarati, and Marathi.
2. NRIs: Around 185,000 Non-Resident Indians (NRIs) live in Malaysia, contributing to the strong people-to-people ties.

Bilateral Institutional Mechanisms

1. Joint Commission Meeting (JCM)
2. Foreign Office Consultations
3. India-Malaysia Defence Cooperation Meeting (MIDCOM)
4. India-Malaysia CEOs' Forum

Additional Joint Working Groups:

1. Counter Terrorism and Transnational Crime
2. Science and Technology
3. Information Technology
4. Labor
5. Higher Education
6. Renewable Energy
7. Public Administration
8. Bilateral Technical Meeting (BTM) on Traditional Medicine

Economic and Commercial Relations

1. Trade: Bilateral trade reached USD 20.01 billion in FY 2023-24.
   1. Malaysia's Trade Position: 16th largest trading partner for India.
   2. India's Trade Position: Among the top 10 trading partners for Malaysia and the third largest trading partner within ASEAN.
2. Major Exports to Malaysia: Mineral fuels, aluminum, meat, iron, copper, organic chemicals, machinery, and electrical equipment.
3. Major Imports from Malaysia: Palm oil, mineral fuels, electrical machinery, fats and oils, wood, aluminum, and chemicals.

Bilateral Investments

1. Malaysian Investments in India:
   1. FDI: USD 3.3 billion, with announced investments of USD 5 billion in renewable energy (green hydrogen, green ammonia) and infrastructure.
   2. Key Companies: Petronas, Gentari (renewable energy), IHH Healthcare, and various construction companies.
2. Indian Investments in Malaysia:
   1. Companies: Over 150 Indian companies, including joint ventures and public sector undertakings.
   2. Sectors: Manufacturing (USD 2.62 billion), IT (USD 250 million), healthcare, and education.
   3. Prominent Companies: Biocon Malaysia, Recron Malaysia, UNZA Malaysia, Ranbaxy Malaysia, and educational institutions like Melaka Manipal Medical College.

Bilateral Initiatives and Collaboration

1. Trade Settlement in Indian Rupees: Effective from April 2023. India International Bank of Malaysia (IIBM) operationalized this mechanism.
2. ASEAN-India Business Summit (March 2023): Organized by ASEAN-India Business Council, High Commission of India, Malaysian Ministry of International Trade and Industry, and FICCI.
3. India-ASEAN Start-up Summit (December 2023): Held in Kuala Lumpur with participation from 35 Indian start-ups.
4. India Investment and Trade Promotion Roadshow (February 2024): Led by Secretary DPIIT, Ministry of Commerce.

Defence Cooperation

1. MoU on Defence Cooperation: Signed in 1993, recently amended in July 2023 to enhance cooperation in joint ventures, development projects, procurement, and training.
2. MIDCOM Meetings: The 12th edition was held on 19 September 2023 in New Delhi.
3. Naval Engagement: Regular Indian Navy port visits to Malaysia; participation in LIMA and DSA exhibitions.

Education

1. MoU (2010): Signed for cooperation in higher education.
2. Indian Students in Malaysia: Approximately 4,400 students in various fields.
3. Malaysian Students in India: Around 3,000 students.
4. Scholarships: India offers 40 slots under the ITEC programme, 3 scholarships under the General Scholarship Scheme, 2 under the Education Exchange Programme, and 20 under the AYUSH Scholarship Scheme.
5. Indian Scholarship and Trust Fund: Established in 1946, with contributions from Indian Prime Ministers, including RM 3 million from PM Narendra Modi in 2015.

Traditional Medicine

1. MoU (2010): Cooperation on Traditional Systems of Medicine.
2. Academic Chair: Ayurveda Chair at University Tunku Abdul Rahman (UTAR).
3. BTM on Traditional Medicine: The 7th meeting was held on 8 December 2023 in Goa.

Indian Community and PIOs

1. Demographics: 2.75 million PIOs, with a substantial presence in Malaysia.
2. Concerns: Issues include illegal immigration, workplace exploitation, and human trafficking.
3. Pravasi Bharatiya Divas: Malaysia frequently sends large contingents to this event.

Tourism and Civil Aviation Cooperation

1. Tourism: India is the 5th largest source of inbound tourism to Malaysia. Malaysia announced visa-free travel for Indian nationals from December 2023 to December 2024.
2. Flight Connectivity: 211 weekly flights between India and Malaysia as of May 2024.

COVID-19 and Vande Bharat Mission

1. Vande Bharat Mission: Malaysia was included in Phase 1 of the mission. Around 110,000 Indian nationals were repatriated from Malaysia.
2. Chartered Flights: Malaysia operated two chartered flights to repatriate Indian detainees in July 2020.

These elements highlight the multifaceted and evolving nature of the India-Malaysia relationship, with ongoing developments in trade, investment, defense, education, and cultural exchange.