10 ways Anwar Ibrahim's India visit will redefine India-Malaysia relations

As Malaysia’s Prime Minister Anwar Ibrahim embarks on his inaugural state visit to India on Monday, the stage is set for a significant leap forward in bilateral relations. Over the next three days, from August 19 to 21, New Delhi will host discussions aimed at concluding crucial pacts on trade and mobility. These agreements are not just routine diplomatic exercises but are expected to cement a robust economic partnership and protect the rights of Indian professionals in Malaysia. With a broader agenda that includes human resources, tourism and regional security, Ibrahim’s visit signals a new era of cooperation between two of Asia’s dynamic economies marking a key moment in India’s ongoing Act East Policy.

As these discussions unfold, the outcomes of this visit could reshape the trajectory of India-Malaysia relations for years to come. Here are 10 key points that highlight the significance of this landmark visit:

1. Strategic bilateral visit: India and Malaysia are set to finalise a significant pact on trade and mobility during Malaysian Prime Minister Anwar Ibrahim’s first official visit to New Delhi marking a significant step in strengthening the bilateral relationship between the two nations.

2. Boosting investment ties: The trade agreement under discussion is expected to significantly enhance Malaysian investments in India, focussing on critical sectors like infrastructure, telecommunications and energy thereby reinforcing Malaysia’s substantial presence in the Indian market.

3. Safeguarding professional rights: The mobility pact is aimed at ensuring the rights and welfare of Indian professionals in Malaysia reflecting the deepening people-to-people ties and the increasing number of skilled workers from India contributing to Malaysia’s economy.

4. Expanding cooperation: In addition to trade and mobility, discussions will likely cover agreements on human resources and tourism, areas where both countries have shown strong interest in further cooperation, especially given Malaysia’s role as a key player in ASEAN.

5. Advancing the Act East Policy: Anwar Ibrahim’s visit is part of a broader diplomatic push by India to advance its Act East Policy. This follows New Delhi’s recent engagements with other Southeast Asian leaders, underscoring India’s strategic pivot towards the region.

6. Regional and global discussions: High on the agenda for the August 20 meeting between Prime Minister Narendra Modi and Anwar Ibrahim will be Malaysia’s potential interest in joining BRICS, the evolving situation in Palestine and the complex dynamics of the South China Sea, where Malaysia is a key claimant state.

7. Navigating China’s influence: With Malaysia’s significant stake in the South China Sea, India is particularly keen to understand Malaysia’s perspective on China’s expanding influence in the region, which could have broader implications for Indo-Pacific security.

8. Renewing ties post-Mahathir: While India’s political ties with Malaysia were occasionally strained during Mahathir Mohammad’s tenure due to his critical stance on Kashmir, the new leadership under Anwar Ibrahim presents an opportunity for revitalised relations, particularly in defence and economic cooperation.

9. Economic powerhouses: Malaysia stands as India’s third-largest trading partner within ASEAN, while India is Malaysia’s largest trading partner in Southeast Asia, with bilateral trade reflecting the strong economic interdependence between the two countries.

10. Significant investment footprint: Malaysia is a notable investor in India, ranking as the 28th largest, with its corporate sector injecting over $1.17 billion into the Indian economy between April 2000 and March 2023. Around 70 Malaysian companies have established operations in India covering a diverse range of sectors from construction to human resources.