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PM Modi, Malaysia PM Anwar back early conclusion of AITIGA review; push stronger India-ASEAN trade ties
Prime Minister Narendra Modi and Malaysian PM Anwar Ibrahim welcomed the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA), aiming to boost trade, investments, and cooperation in semiconductors, digital economy, and strategic sectors. India-Malaysia trade nears $20 billion.
Prime Minister Narendra Modi and Malaysian PM Anwar Ibrahim welcomed the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA), aiming to boost trade, investments, and cooperation in semiconductors, digital economy, and strategic sectors. India-Malaysia trade nears $20 billion.
Prime Minister Narendra Modi on Sunday thanked Malaysia for supporting the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA) and stressed the need for its early conclusion to further strengthen India’s engagement with ASEAN nations.
Speaking at a joint press statement with Malaysian Prime Minister Anwar Ibrahim during his official visit to Malaysia, PM Modi said, “With the support of friendly countries like Malaysia, India will further broaden its engagement with ASEAN. We agree that the review of AITIGA should be completed at the earliest.”
The Prime Minister, who is on a two-day visit from February 7–8, held restricted as well as delegation-level talks with Anwar at Seri Perdana, the Malaysian PM’s official residence.
Focus on trade and strategic partnership
Both leaders emphasised the importance of AITIGA and the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) in strengthening bilateral economic ties. They agreed to deepen the India-Malaysia Comprehensive Strategic Partnership, established in 2024, and exchanged views on regional and global issues, including Indo-Pacific developments, reforms in global governance, and the expanding India-ASEAN partnership.
According to the joint statement, the two sides welcomed the AITIGA review to make the pact more mutually beneficial, trade-facilitative and aligned with current global trading practices. They also highlighted the untapped potential of MICECA in boosting trade and investments.
Growing economic engagement
Addressing the media, P. Kumaran, Secretary (East), Ministry of External Affairs, said Malaysia remains India’s third-largest trading partner within ASEAN, with bilateral trade nearing $20 billion.
He noted that trade has diversified across agricultural products, chemicals, minerals, machinery and appliances, while cooperation in emerging sectors such as semiconductors and digital technologies has intensified.
PM Modi highlighted India’s growing appeal as a key investment destination for Malaysian businesses. In turn, Anwar welcomed the significant presence of Indian manufacturing and technology firms in Malaysia, which have generated high-skilled employment.
Connectivity and investments
Both leaders underscored that connectivity remains critical for economic growth, appreciating improved air and maritime links, and agreed to further strengthen them.
They also encouraged greater cooperation and investments in priority sectors such as:
- Infrastructure
- Renewable Energy
- Advanced Manufacturing
- Semiconductors
- Healthcare
- Digital economy and Fintech
- Startups and Artificial Intelligence
- Green technologies and hospitality
The two Prime Ministers welcomed the 10th India-Malaysia CEO Forum held in Kuala Lumpur and expressed hope that business-to-business engagement would further accelerate trade and investment flows.
They also appreciated ongoing collaboration between the Reserve Bank of India and Bank Negara Malaysia to promote local currency settlement in bilateral trade using the Indian Rupee and Malaysian Ringgit.
Trade set to rise further
Prime Minister Anwar expressed optimism that bilateral trade would expand beyond the $18.59 billion recorded last year.
“India is growing by leaps and bounds and is emerging as a major force in global trade. Malaysia, within the ASEAN framework, stands to benefit immensely by expanding collaboration and increasing trade with India,” he said.
