Prime Minister Narendra Modi with Malaysian Prime Minister Anwar Ibrahim witnesses the exchange of MoUs between India and Malaysia, in Kuala Lumpur on Sunday. (DPR PMO/ANI Photo)

KUALA LUMPUR: India and Malaysia inked 11 MoUs in what was described by both Anwar Ibrahim and Narendra Modi as a “critical, strategic and vital exchange” for reinforcing the Comprehensive Strategic Partnership, at Seri Perdana, the official residential complex of the Malaysian PM.Key agreements include Exchange of Notes (EoN) on semiconductors, a sector where both countries are aggressively partnering to boost the value chain, including AI and R&D. At the press briefing after the signing of the deals, an agreement between India’s NPCI International Ltd (NIPL) and Malaysia’s PayNet was announced.

“It is not yet operational owing to some necessary technical alignments,” said P Kumaran, secretary, East. He added that there is also a broader project for multi-point connectivity called Project Nexus; which India, Malaysia, Singapore and a few other countries in the region are working on. This will give direct connectivity from one country to all the other countries partaking in the Nexus.On the question of a timeline for operationalising the settlement of trade in local currencies, Kumaran said, “It is a matter of priority for both sides and discussions are ongoing between the two regulatory bodies, RBI and Bank Negara. We are going to be working very actively on this in the coming few months.”On defence, the two PMs emphasised their intent to work closer and expressed satisfaction at the outcomes of the Malaysia-India Defence Cooperation Committee (MIDCOM) and its subcommittees, including the terms of reference on establishment of a Strategic Affairs Working Group (SAWG) and Su-30 Forum.Importantly, India’s three-decade experience with Su-30s and its proximity to Malaysia makes it the best country for its upgrade and maintenance. This also encompasses a broader defence industrial agenda beyond transactional procurement.Other agreements include areas like disaster management, the fight against corruption, healthcare, training in Ayurveda, anti-terrorism, UN Peacekeeping as well as the Framework Agreement on the Big Cats Alliance. The two sides have also agreed to collaborate on social security through a pact between Malaysia’s social security organisation and India’s Employees’ State Insurance Corporation.