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Indian Prime Minister Narendra Modi met with Malaysian leader Anwar Ibrahim in Putrajaya on Sunday to discuss deeper cooperation on computer chips and trade, marking his first trip to the country since the two nations elevated their ties last August. The visit comes less than two weeks after India signed a major trade agreement with the European Union on January 27. While that deal focuses on opening markets for Indian goods and services across Europe, the Malaysia talks center on building the manufacturing capacity India needs to meet that demand. Semiconductor cooperation drives new partnership Both countries are trying to take advantage of global companies looking for alternatives to Chinese factories. The Sunday meetings produced agreements on semiconductor production, currency exchanges, and defense matters. Computer chips dominated the agenda. Malaysia currently does 13% of the world’s chip testing and packaging operations and wants to move into more sophisticated production. India recently put $10 billion into programs designed to attract semiconductor factories. “Our partnership in the digital and semiconductor sectors is not just about bilateral gains; it is about building a resilient global supply chain,” Modi said at the Seri Perdana complex, speaking alongside Anwar Ibrahim. The plan connects India’s chip design capabilities and new factories being constructed in Gujarat with Malaysia’s existing facilities in Penang. Government officials believe this arrangement between the two South Asian nations could compete with established industry centers in the West. The two governments also agreed to speed up efforts to allow businesses to pay each other in rupees and ringgit rather than US dollars, which often shift in value unpredictably. Last year, India and Malaysia traded $18.6 billion in goods. Anwar said that number should climb higher under the new arrangements. “We are moving beyond the era of simple buyer-seller relationships,” Anwar told reporters. “We…

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Filed under: News - @ February 8, 2026 2:22 pm