MALAYSIA, 26/08/2024 (Asia News Channels) - Malaysia and India are set to enhance their economic relationship by upgrading the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) following Malaysian Prime Minister Anwar Ibrahim’s recent visit to New Delhi.
During discussions, Anwar and Indian Prime Minister Narendra Modi explored closer cooperation in key areas such as the digital economy, semiconductor manufacturing, artificial intelligence, infrastructure, food security, and tourism. Malaysia’s Trade and Industry Minister Tengku Zafrul Aziz confirmed that the existing MICECA agreement, signed in 2011, would be expanded to cover more comprehensive areas of cooperation.
“We will elevate whatever cooperation we have towards a more comprehensive one,” Tengku Zafrul told Bernama. He added that both leaders have set a three-month timeframe to identify focus areas and parameters for the agreement's upgrade.
The talks between Malaysia and India also create new business opportunities in sectors like emerging technologies, renewable energy, chemicals, petrochemicals, and manpower development.
In 2022, trade between Malaysia and India reached US$16.5 billion (RM72.13 billion). India is currently Malaysia's 11th-largest export destination and 12th-largest source of imports. The trade landscape has shifted significantly, with Malaysia's exports of electrical and electronics products to India rising, while primary commodities now account for only a third of all exports. On the Indian side, petroleum products and engineering goods have seen substantial growth.
Prime Minister Anwar highlighted the semiconductor sector as a major area of potential cooperation, noting Malaysia’s strength in semiconductor assembly, testing, and packaging, while praising India’s leading software capabilities.
-- ASIA NEWS CHANNELS