PM Modi’s Malaysia Visit Seals Local-Currency Trade

Kuala Lumpur, Malaysia/ New Delhi: Prime Minister Narendra Modi visited Malaysia on February 7, 2025, giving a major push to India–Malaysia relations with a focus on trade, financial cooperation, and strategic engagement.

During the visit, India and Malaysia agreed to promote bilateral trade settlement in each other’s currencies the Indian Rupee (INR) and the Malaysian Ringgit (MYR).

The decision, worked upon by India’s State Bank of India (SBI) and Bank Negara Malaysia, aims to reduce reliance on third-country currencies, lower transaction costs, and make cross-border trade more efficient for businesses in both nations.

Both sides emphasised that local-currency trade would help expand bilateral commerce, which has been steadily growing, while strengthening financial resilience amid global economic uncertainties. The move is also expected to encourage greater participation from small and medium enterprises.

Prime Minister Modi and Malaysian Prime Minister Anwar Ibrahim also discussed cooperation in digital payments, energy, semiconductors, and investment, alongside broader regional and global issues. Anwar Ibrahim appreciated India’s role in promoting peace globally and welcomed deeper economic engagement with New Delhi.

Malaysia agreed to India’s proposal to open an Indian consulate in Kota Kinabalu, Sabah, further enhancing people-to-people ties, trade, and tourism.

PM Modi’s visit on February 7, 2025, underscored India’s commitment to strengthening partnerships in Southeast Asia, with both nations expressing confidence that agreements on local-currency trade and strategic cooperation.