Prime Minister Narendra Modi is considering a visit to Malaysia in early February, a move that could significantly strengthen India’s outreach to Southeast Asia under its Act East Policy. The proposed visit assumes added importance at a time when Malaysia maintains deep economic ties with China, which has been its largest trading partner for the past 17 years.
According to media reports, the visit has been under consideration since October last year, when Prime Minister Modi was unable to attend the ASEAN Summit hosted by Malaysia due to domestic commitments, including the Bihar Assembly elections. A bilateral visit now is being seen as a strategic effort to reinforce India–Malaysia relations.
Malaysia’s China Factor
China continues to dominate Malaysia’s trade landscape. As per data published by ASEAN Briefing, bilateral trade between China and Malaysia stood at USD 212.04 billion in 2024, making Beijing Kuala Lumpur’s largest trading partner for nearly two decades. This economic proximity has often raised questions about Malaysia’s strategic alignment in the Indo-Pacific region.
Against this backdrop, India’s efforts to deepen ties with Malaysia are viewed as part of a broader strategy to balance China’s influence in Southeast Asia.
Upgraded Strategic Partnership
India and Malaysia elevated their relationship to a Comprehensive Strategic Partnership during Malaysian Prime Minister Anwar Ibrahim’s visit to India in August 2024. Since then, bilateral engagement has gained momentum, particularly in defence, maritime security, and emerging technologies.
Relations had earlier witnessed strain during former Prime Minister Mahathir Mohamad’s tenure due to differences over the Kashmir issue. However, Anwar Ibrahim’s leadership since November 2022 has opened a new chapter, marked by improved political and strategic understanding.
Trade and Economic Cooperation
Malaysia is India’s third-largest trading partner within ASEAN, and bilateral trade has steadily expanded, though it remains tilted in Malaysia’s favour. India and Malaysia signed a Comprehensive Economic Cooperation Agreement (CECA), a form of Free Trade Agreement, while India also has FTAs with ASEAN covering goods, services, and investment.
Strategic Geography and Indian Diaspora
With 7.2 per cent of its population of Indian origin, Malaysia holds a special place in India’s foreign policy calculus. Strategically located along critical sea lanes such as the Strait of Malacca and the South China Sea, Malaysia is central to India’s maritime connectivity and Indo-Pacific vision.
These waterways are among the busiest maritime routes in the world, making Malaysia a crucial partner for ensuring freedom of navigation and regional stability.
Expanding Defence Cooperation
India and Malaysia have significantly enhanced defence cooperation in recent years. The two countries conduct an annual joint military exercise named ‘Harimau Shakti’. On February 19, 2025, the 13th Malaysia–India Defence Cooperation Meeting (MIDCOM) was held in Kuala Lumpur, focusing on defence industry collaboration, maritime security, cyber security, and artificial intelligence.
Both sides also agreed to establish a Su-30 Forum and a strategic working group to deepen cooperation between their air forces. Indian Air Force Su-30MKI fighter jets participated in joint air exercise ‘Udara Shakti 2024’ hosted by the Royal Malaysian Air Force, underscoring growing defence synergy.
Why the Visit Matters
Prime Minister Modi’s potential visit to Malaysia is expected to send a strong diplomatic signal of India’s commitment to Southeast Asia. It aligns with New Delhi’s long-term goal of strengthening regional partnerships, securing critical sea lanes, expanding defence cooperation, and offering ASEAN nations an alternative strategic engagement beyond China.
If the visit materialises, it could mark a decisive step in advancing India’s Act East Policy and reinforcing Malaysia’s role as a key pillar of India’s Indo-Pacific strategy.
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