Prime Minister Anwar Ibrahim is on his first official visit to India. The main aim of this visit is to seek support for Malaysia’s application to join Brics and to fortify bilateral ties, as the country is keen to improve its connections with one of the rapidly expanding economies in Asia.
In light of the increasing crumbling of the global order, particularly stemming from trade disputes between the United States and China, as well as the proxy conflict involving the United States and Russia, Malaysia is encouraged to reassess its foreign policy to uphold its neutral stance.
Given India’s status as the largest democracy and the fifth-largest economy globally, along with its notable advancements in indigenous space and defence technologies, it is proposed that India emerge as Malaysia’s key partner in the years ahead.
Why India is important for Malaysia
The historical ties between India and Malaysia extend back several centuries, with significant Indian cultural, religious, and administrative influences observable in the region.
This longstanding connection has resulted in a considerable Indian population in Malaysia, which constitutes approximately seven percent of the total demographic.
India serves as a key trading partner for Malaysia, with bilateral trade reaching over US$16 billion in 2023. Notably, India is the foremost importer of Malaysian palm oil and a significant rice supplier to Malaysia.
India is the foremost importer of Malaysian palm oil
Over the past decade, India has consistently been Malaysia’s top export market for palm oil, acquiring 2.84 million tonnes in 2023, representing nearly 20 percent of the country’s overall palm oil exports, according to government statistics.
Furthermore, Malaysia plays an essential role in India’s “Act East” policy, which seeks to enhance economic and strategic partnerships with Southeast Asian nations. This collaboration is crucial for India’s maritime connectivity initiatives.
Recent diplomatic engagements, including Anwar’s visit to India, underscore the importance of both countries’ bilateral relationship and the intent to strengthen ties.
India, M’sia collaborate on regional security
India and Malaysia have encountered a range of contemporary security challenges collectively, particularly concerning maritime security, regional stability, and non-traditional threats. Both nations express significant apprehension regarding the security dynamics of the Indian Ocean and the South China Sea.
They have engaged in cooperative efforts to tackle issues such as piracy, illegal fishing, and the activities of foreign naval forces. The increasing influence of China in the Indo-Pacific region has emerged as a critical concern for both countries.
In response, India and Malaysia have been working together to promote a free and open Indo-Pacific, which includes participating in joint military exercises and strategic discussions.
Joint military exercises
Additionally, they are addressing non-traditional threats, including cyber threats, terrorism, and environmental issues.
The two nations have strengthened their collaboration in cybersecurity to safeguard critical infrastructure and mitigate cyber threats. They also exchange intelligence and best practices to combat terrorism and extremism effectively.
Environmental challenges that cross national boundaries, such as haze resulting from forest fires in adjacent countries, have also raised alarms.
Consequently, both countries are pursuing joint initiatives to tackle these pressing issues. These collaborative endeavours not only enable both nations to confront shared security challenges but also contribute to the overall stability of the region.
India’s economy, GDP, and defence capacity
India ranks as the fifth-largest economy globally in terms of nominal GDP, with an estimated GDP of around US$3.5 trillion in 2023. The nation has exhibited strong economic growth, propelled by key sectors including services, manufacturing, and agriculture.
Over the past decade, India’s GDP growth rate has been notable, averaging between six and seven percent annually. Despite obstacles such as the Covid-19 pandemic, the economy has shown remarkable resilience and a positive recovery path.
The services sector stands as the predominant contributor to India’s GDP, followed by the industrial and agricultural sectors.
Notably, information technology, telecommunications, and financial services play crucial roles. For the fiscal year 2024-25, India’s defence budget is projected at 6.21 lakh crore (approximately US$75 billion/RM329 billion), positioning it among the largest globally.
This budget emphasises capital expenditure, domestic procurement, and the enhancement of border infrastructure. India maintains a powerful military force, comprising over 1.4 million active personnel and possessing advanced capabilities across land, air, and naval domains.
The nation is also advancing its missile and nuclear capabilities. The government is dedicated to modernising its armed forces through initiatives such as “Aatmanirbhar Bharat” (Self-Reliant India), which seeks to enhance domestic defence production and lessen reliance on imports.
This initiative encompasses investments in new technologies, weapon systems, and infrastructure development. India’s strategic position in South Asia, coupled with its expanding economic and military prowess, establishes it as a significant player in both regional and global geopolitics.
The country actively participates in various international organisations and alliances, including Brics, the Quad, and G20.
Furthermore, India is emerging as a notable defence exporter, with defence exports reaching 21,000 crore in the financial year 2023-24. This transition highlights India’s advancing capabilities in defence manufacturing and its increasing influence in the global defence market.
Collectively, these factors underscore India’s economic and defence strengths, solidifying its status as a major global power.
Conclusion
India’s remarkable economic growth trajectory suggests it is poised to become the third-largest economy globally, characterised by advanced technological capabilities.
This presents Malaysia with significant opportunities for its own economic development.
As India emerges as a key exporter of military weapons and equipment, establishing itself as a major player on the world stage, Malaysia cannot overlook the importance of this relationship, both for its national interests and in the broader international context.
The transformation of India over the past 30 years is striking. In light of the escalating tensions between China and the US, Malaysia should consider recalibrating its economic and defence partnerships with India.
Such a strategy would not only bolster the country’s economic growth but also enhance its sovereignty against external pressures in the future.
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