India Malaysia sign agreements on semiconductors digital payments

India and Malaysia on Sunday announced separate agreements to cooperate in semiconductor manufacturing and enable digital payment linkages

The announcements were made after Prime Minister Narendra Modi met his Malaysian counterpart, Dato’ Seri Anwar Ibrahim, for a bilateral meeting. The two Prime Ministers unequivocally and strongly condemned terrorism in all its forms and manifestations, including cross-border terrorism — an apparent reference to Pakistan-sponsored terror.

Both leaders called for zero tolerance towards terrorism and for concerted international efforts to combat it in a comprehensive and sustained manner.

Secretary (East) in the Ministry of External Affairs P Kumaran told mediapersons after the meeting that the two sides also discussed the possible sale of India-made Dornier aircraft and the maintenance of Sukhoi-30 fighter jets. The Malaysian Air Force and the Indian Air Force operate the same Russian-origin aircraft. Malaysia is also among the five countries involved in maritime territorial disputes with China in the South China Sea.

In his opening remarks, Modi said the core message of his visit was that India wants to take relations with Malaysia “to a new level” and expand cooperation “in every field”.

India also announced the establishment of a Consulate General in Malaysia. In addition, a dedicated ‘Thiruvalluvar Centre’ will be set up at University Malaya in Kuala Lumpur. Malaysia is home to nearly three million people of Indian origin.

An agreement was signed between India’s NPCI International Limited (NIPL) and Malaysia’s PayNet to establish bilateral payment linkages. The integration is expected to enhance ease of doing business and provide seamless, low-cost remittance and payment solutions for tourists, students and small businesses. Bilateral trade between the two countries stands at around $20 billion.

Further strengthening fintech cooperation, the two sides formalised the Malaysia-India Digital Council (MIDC), envisaged as a key platform to advance digital collaboration, foster innovation and explore projects in areas such as fintech, e-governance, cybersecurity, artificial intelligence, digital public infrastructure (DPI) and other emerging technologies.

The Prime Ministers commended ongoing cooperation initiatives, including partnerships between IIT-Madras Global and the Advanced Semiconductor Academy of Malaysia, and between the Indian Electronics and Semiconductor Association (IESA) and the Malaysia Semiconductor Industry Association (MSIA).

Malaysia is a key player in the global semiconductor industry, accounting for about 13 per cent of global trade. India, meanwhile, is seeking to emerge as an international producer of semiconductors for commercial applications.

The two leaders also said the Reserve Bank of India and Bank Negara Malaysia would work towards promoting the use of local currency settlement in bilateral trade and investments. Industries on both sides were encouraged to facilitate invoicing and settlement in Indian Rupees and Malaysian Ringgit.

A joint statement said the two sides reaffirmed their commitment to further consolidate and expand the India-Malaysia Comprehensive Strategic Partnership.

The leaders held discussions covering the full spectrum of bilateral relations, including political engagement, defence and security cooperation, maritime cooperation, trade and investment, the digital economy, science and technology, energy, agriculture, health, education, culture and tourism.

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Courtesy: The Tribune -09-Feb-2026