In the recent global scenario, with ever-evolving geopolitical ties, the relationship between India and Malaysia has been in the limelight. This relationship has traversed various facets from trade to defence cooperation and even traditional medicine. The significance of Malaysia for India is not only rooted in the historical connections but also its strategic geographical location.
India-Malaysia Relations: The Genesis
India established diplomatic relations with Malaysia in 1957, just after Malaysia’s independence. Since then, the relations have been on an upward trajectory. The Indian diaspora, which constitutes around 7.2% of Malaysia’s population, has played a significant role in strengthening the bond. The presence of Indians in Malaysia has greatly influenced the socio-economic fabric of the nation.
The Malaysian Navy Chief’s recent visit to India highlights the strengthening ties between the two countries. This visit was preceded by a bilateral exercise named Samudra Laksamana in May 2022 and Navy-to-Navy Staff Talks in June 2022.
Economic Relationship
The economic relationship between India and Malaysia is mainly governed by the Comprehensive Economic Cooperation Agreement (CECA) signed by both countries. CECA is a Free Trade Agreement (FTA) aimed at promoting trade and reducing trade barriers. Besides, India has also inked FTA in services and investments with the Association of Southeast Asian Nations (ASEAN), where Malaysia is the third-largest trading partner.
Although the bilateral trade has always been skewed in favor of Malaysia, India resumed buying Malaysian palm oil in 2020, following a four-month gap due to some diplomatic disagreement.
Defence and Security Cooperation
One of the noteworthy aspects of India-Malaysia relations is the robust defence and security cooperation. The annual joint military exercises named “Harimau Shakti” reflect the mutual commitment towards reinforcing regional security. Furthermore, Malaysia’s geopolitical position makes it a crucial partner in India’s maritime connectivity strategies.
Traditional Medicine: Unique Aspect of the Relationship
The agreement signed in October 2010 between India and Malaysia on cooperation in the field of Traditional Medicine further adds to the uniqueness of this relationship. The AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homoeopathy) systems originated in India are practiced and promoted in Malaysia.
Recent Developments and Challenges
Despite the generally positive trajectory of relations, certain disagreements have caused occasional hiccups. For instance, in 2020, the then Malaysian Prime Minister criticized India’s Citizenship Amendment Act, which was viewed as an interference in India’s internal affairs and led to a temporary halt in bilateral trade.
The Importance of Malaysia for India
The significance of Malaysia for India is multifaceted. A large Indian diaspora, the strategic location between the Strait of Malacca and South China Sea, and active participation in ASEAN make Malaysia a key pillar of India’s Act East policy.
Bilateral Disputes and Maritime Security
Amidst rising tension and territorial disputes in the South China Sea, safeguarding maritime security to ensure freedom of navigation remains a vital concern for both nations. While no direct bilateral issues exist between India and China in this context, the regional dynamics necessitate a coordinated approach to maintain peace and stability in the region.