India – Malaysia Relationship: Got Boosted

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News Highlights

The India – Malaysia relationship got strong as the Indian Defence Minister visited  Malaysia.

Focus Points

  • The meeting focused on Indian defence industries to assist the Malaysian defence sector.
  • India asked top officials from Malaysia to visit the country so they could see the infrastructure and goods produced by the country’s defence sector firsthand.
  • Malaysia put forward a view to engage women in peacekeeping and both countries agreed to engage on the issue.
  • The capabilities for Humanitarian Assistance and Disaster Relief (HADR) activities will be improved, as agreed upon by the two nations.
  • Both parties talked about methods to improve the current Malaysia-India Defence Cooperation Meeting (MIDCOM) framework’s existing defence cooperation activities and framework between the two nations.

India-Malaysia Relation

  • India – Malaysia shared a vibrant relationship for 65 years and Malaysia plays a key role in India’s Act East Policy.

Areas of Cooperation 

Political Relations 

  • India formally established diplomatic relations with the Federation of Malaya (predecessor state of Malaysia) in 1957.
  • India and Malaysia share common platforms like the UN, and India – ASEAN summits, East Asian Summit, ASEAN-India Foreign Ministers’ Meeting, Commonwealth, and Non-Aligned Movement.
  • Bilateral visits and summits include 
    • India-Malaysia Joint Commission
    • India-Malaysia Parliamentary Friendship Group
  • Bilateral Agreements Signed 
    • Framework for Strategic Partnership – It aims at the development of a multi-faceted relationship with a view to elevate bilateral relations to the level of a long-term and strategic partnership. 
    • Agreement on Cultural Exchange Programme for 2015-2020.
    •  MoUs on “Cooperation in the area of Performance Management, Project Delivery and Monitoring related to Government Programmes and Delivery” and “Cooperation on Cyber Security”.
  • Both countries also issued a Joint Statement of Enhanced Strategic Partnership between India and Malaysia.
  • As part of a bilateral visit, the Indian Minister of Commerce and Industries visited Malaysia and participated in the RCEP(Regional Economic Comprehensive Partnership) Inter-sessional Ministerial Meeting
India - Malaysia Relation

Defence Relation

  • As part of the initial step of defence cooperation, both countries signed MoU in 1993 since then both countries have had a good relationship.
  • India – Malaysia Defence meeting takes place regularly.
  • Joint Exercise – Harimau Shakti
  • The Indian Air Force Training Team was deployed in Malaysia to train Malaysian pilots on the SU-30 SKM aircraft from 2008 to 2010. 
  • Indian naval ships also make regular port calls in Malaysia.
  • Joint operations in the field of counter-terrorism.
  • Indian assistance to the Malaysian navy due to the increasing presence of China in the South China Seas.
India - Malaysia Relation

Economic Relation

  • To boost bilateral trade India avoided double taxation.
  • Both countries signed agreements like 
    • Comprehensive Economic Cooperation Agreement (CECA)
    • Free Trade Agreement (FTA) in services and investments with the 10-member Association of Southeast Asian Nations (ASEAN)
    • Established  India-Malaysia CEOs Forum
  • Malaysia is our third-largest trading partner in ASEAN and India is the largest trading partner for Malaysia among the countries of the South
  • Bilateral trade between India and Malaysia is significantly biased in favour of Malaysia.

Connectivity and Tourism 

  • Connectivity 
    • Air links have improved significantly following a bilateral agreement in 2007.
    • The two sides have finalised a revised Air Services Agreement in October 2011 and internal approvals are being sought.
  • Tourism
    • India is the sixth-largest source country for inbound tourism to Malaysia with around 7 lakhs Indian tourists visiting Malaysia in 2015.
    • Malaysia is the tenth largest source country for foreign tourists visiting India 
    • It is estimated that 1.6 lakhs of Malaysian tourists visited India in 2015

Cultural Relation 

  • Traditional Medicines 
    • As an initial step, India and Malaysia signed an MoU in this field in 2010.
    • Traditional and Complementary Medicine (TCM) Division, Ministry of Health of Malaysia has been working to popularise AYUSH systems in Malaysia. 
    • Ayurveda, Siddha, Unani, and Homeopathy systems are practiced in Malaysia.
    •  Since 2010 the AYUSH Information Cell in Netaji Subhash Chandra Bose Indian Cultural Centre (NSCBICC) has been working to promote the AYUSH sector in Malaysia.
  • Education Cooperation 
    • Every year, nearly 2000 Indian students come to study in Malaysia, while nearly 1500 Malaysian students enroll themselves in Indian colleges. 
    • Out of these, more than 95% of Malaysian students join for Medical and Dental courses in India
  • Diaspora 
    • Malaysia has one of the largest communities of Persons of Indian Origin in the world, numbering close to 2 million (about 7 to 8% of Malaysia’s population). 
    • There are over 130,000 Indian ex-pats legally employed in Malaysia in skilled and semi-skilled categories.
    •  A bilateral MoU on Employment and Welfare of Workers signed in January 2009 establishes an institutional framework to deal with issues concerning Indian workers.

Why is Malaysia Significant for India?

  • Strategic Significance
    • Malaysia is located close to strategic sea routes like Malacca Strait which can act as a check on Chinese movement.
  • Political Significance
    • By engaging ASEAN members like Malaysia India’s influence on the grouping also gets stronger.
  • Economic Significance
    • Malaysia has the potential to act as an engine for driving FDI toward India.

Issues in India – Malaysia Relation

  • Trade imbalance.
  • Interference of Malaysia in Indian internal matters like the Citizenship Amendment Act (CAA).
  • Malaysia showing a tilt toward China.

Way Forward

  • India – Malaysia relations can be cordially developed through the use of common soft powers like diaspora and religion and mutual talks.

Malaysia 

  • It is a southeast Asian country.
  • Capital 
    • Administrative – Putrajaya
    • Ceremonial, legislative, and judicial – Kuala Lumpur
  • Peninsular Malaysia shares a land and maritime border with Thailand and maritime borders with Singapore, Vietnam, and Indonesia. 
  • East Malaysia shares land and maritime borders with Brunei and Indonesia and a maritime border with the Philippines and Vietnam.
India - Malaysia Relation

Pic Courtesy: Hindustan Times, The Week, Economic Times

Content Source: The Hindu

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