Wednesday 05 / February / 2025
New Delhi : Malaysia's chairmanship of Asean in 2025 presents a significant opportunity to deepen ties with India bilaterally and at the regional level.
Malaysia's longstanding diplomatic neutrality and its ability to maintain amicable relations with both the United States and China uniquely position it to foster dialogue and mitigate tensions between these two global powers.
By promoting communication and confidence-building measures, Malaysia can help create a more stable regional environment, where Asean members — including India — can pursue their economic and security interests free from external coercion.
India's emergence as a key partner for Asean, driven by its growing economic and military prowess and its pro-active "Act East Policy", underscores this opportunity. This policy, which focuses on strengthening ties with Asean nations, aligns closely with Malaysia's vision for its chairmanship.
Malaysia's Asean chairmanship offers a valuable platform to enhance Malaysia-Asean-India collaboration in several key areas.
Promoting trade, investment, and connectivity through initiatives such as the Asean India Free Trade Agreement and India's role as a development partner in IMT-GT (Indonesia, Malaysia, Thailand Growth Triangle) can drive deeper economic integration and shared prosperity.
Asean's trade with India surpassed US$100 billion in 2022, highlighting the vast potential for future growth.
Joint naval exercises, intelligence-sharing, and capacity-building efforts can strengthen Maritime Domain Awareness and address security challenges in the South China Sea.
Developing critical infrastructure projects, enhancing digital connectivity, and fostering people-to-people exchanges through education and cultural programmes can further integrate the Asean and Indian economies and societies, cultivating a sense of community.
Moreover, collaboration on renewable energy technologies, disaster management, and sustainable development will help address the region's pressing climate and environmental challenges.
Malaysia's Renewable Energy Roadmap, which targets 31 per cent renewable energy capacity by 2025, offers opportunities for collaboration with India, whose goal is to achieve 500 gigawatts (GW) of non-fossil fuel energy capacity by 2030.
Beyond security and strategic alignment, India is one of Malaysia's top trading partners and Malaysia stands as India's third-largest trading partner within Asean. In 2023, bilateral trade reached US$19.4 billion.
To further boost economic ties, both nations are working to update the Asean-India Trade in Goods Agreement (AITIGA) to reduce non-tariff barriers, streamline customs processes, and aligning standards to facilitate smoother trade.
The growing digital economy also presents an exciting area of opportunity. The memorandum of understanding on digital technologies and ongoing talks to integrate India's Unified Payments Interface (UPI) into Malaysia's financial system are significant steps towards creating a seamless digital ecosystem.
There are challenges in the bilateral relationship. Economic competition, particularly in the palm oil sector, requires careful navigation.
However, both countries have made concerted efforts to address this issue, with ongoing discussions on sustainable palm oil certification, demonstrating a willingness to find mutually beneficial solutions.
This includes exploring alternative vegetable oil imports by India and promoting sustainable palm oil production in Malaysia.
Additionally, ensuring the rights and welfare of Indian workers in Malaysia is crucial to strengthening the bilateral foundation.
Malaysia's decision to extend visa-free entry to Indians until Dec 31, 2026 is in sync with the Asean's decision to declare 2025 as the Asean-India Year of Tourism.
This is a fine example of how Malaysia can align its policies with Asean initiatives to harness the potential of the Malaysia-Asean-India dynamics.
On a broader scale, Malaysia and India, along with Asean, face challenges that require coordinated responses, especially China's increasing assertiveness and the South China Sea disputes, call for a united front.
The ongoing crisis in Myanmar demands close cooperation to facilitate a peaceful resolution. Strengthening economic integration within Asean, and between Asean and India, is vital for regional prosperity.
Climate change is another pressing issue, necessitating collective action on mitigation and adaptation. Navigating the US-China rivalry while maintaining strategic autonomy presents a delicate balancing act for all regional actors.
Additionally, technological disruption and rising protectionism create opportunities and risks. Harnessing technology for economic advancement, while ensuring equitable access, is essential, as is maintaining open markets to support free and fair trade.
Malaysia's 2025 Asean chairmanship offers a unique opportunity to bolster this partnership.
