Malaysia-India trade stands at $18.25 billion and is growing at 8.5%
ECONOMY & POLICY

Malaysia-India trade stands at $18.25 billion and is growing at 8.5%

With bilateral trade between Malaysia and India reaching $18.25 billion and growing at an annual rate of 8.5 per cent, economic collaboration between the two nations continues to strengthen. From infrastructure and green energy to technology and manufacturing, new opportunities are emerging for...

With bilateral trade between Malaysia and India reaching $18.25 billion and growing at an annual rate of 8.5 per cent, economic collaboration between the two nations continues to strengthen. From infrastructure and green energy to technology and manufacturing, new opportunities are emerging for businesses on both sides. Ahmad Zuwairi Yusoff, Consul General of Malaysia, Mumbai, shared insights with CW on key areas of partnership, investment potential and the road ahead. Excerpts:Malaysia has a strong economic presence in India, with around 70 companies operating across key sectors like infrastructure, healthcare and energy. At the same time, over 150 Indian companies have invested in Malaysia. How do you see this bilateral economic partnership evolving, and what key sectors hold the most potential for  future collaboration?Malaysia and India have made significant progress in bilateral trade and economic cooperation. Currently, trade between the two nations stands at approximately $18.25 billion, growing at an annual rate of 8.5 per cent over the past two decades. Initially dominated by palm oil and petroleum products, Malaysia’s exports to India have diversified, with electrical and electronic products now making up a significant portion. Similarly, India's exports to Malaysia have evolved from agricultural products to petroleum and engineering goods, reflecting India's industrial transformation under initiatives like ‘Make in India’.Malaysia’s Industrial Master Plan 2030 aims to strengthen our manufacturing sector, with a focus on global integrated circuit (IC) design for electric vehicles (EVs), renewable energy and AI applications. In terms of collaboration, key sectors include connectivity, sustainable economic growth, green development, technological transformation and public infrastructure.With Malaysia’s construction market projected to gro  from $53.93 billion in 2025 to $117.14 billion by 2034, what  role do you see Indian companies playing in this expansion?  What opportunities exist for collaboration in infrastructure and real-estate development?Malaysia has earmarked approximately $19 billion under the Malaysia Madani budget, focusing on infrastructure development, innovation and public-sector improvement. India’s infrastructure sector is highly regarded in Malaysia, with Indian companies like IRCON International having contributed to railway projects since 1993. Prime Minister Modi’s visit to Malaysia in 2018 provided a valuable opportunity for Malaysia to express interest in learning from India’s infrastructure expertise.With the recent elevation of bilateral ties to a comprehensive strategic partnership, there is significant room for deeper cooperation in the construction sector. The Construction Industry Development Board (CIDB) oversees Malaysia’s construction framework and foreign companies, including Indian firms, have opportunities to bid for upcoming projects.Major construction events provide a platform to showcase business opportunities and foster partnerships. How is Malaysia engaging with Indian stakeholders through such events and what initiatives are in place to attract Indian participation in Malaysia’s construction sector?Malaysia actively participates in and organises construction-related expos and trade events. In October 2025, CIDB will host the International Construction Week in Kuala Lumpur, themed ‘Constructing the Future of ASEAN’, aligning with Malaysia’s ASEAN chairmanship. Events like these facilitate networking, knowledge exchange and business partnerships. Additionally, roadshows and B2B meetings are conducted to strengthen ties between Indian and Malaysian companies. The Malaysian government is also exploring digital platforms to enhance engagement and streamline business matchmaking between stakeholders from both countries.The CECA agreement and India-ASEAN FTA have significantly boosted trade and investment between India and Malaysia. How can both nations further leverage these frameworks to unlock new business opportunities?The Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) complements the ASEAN-India Trade in Goods Agreement and has significantly boosted trade since its implementation in 2011. Given the evolving global economic landscape, both nations are actively reviewing and discussing these agreements to ensure continued relevance. As the ASEAN Chair in 2025, Malaysia is committed to achieving a substantial conclusion in the review of the ASEAN-India Trade in Goods Agreement. These frameworks provide a foundation for economic stability and business confidence amid global uncertainties, allowing businesses to explore and expand market opportunities effectively.With Malaysia’s growing focus  on sustainability and green energy, how can Indian  companies collaborate in areas such as renewable energy, energy-efficient construction and smart infrastructure?Malaysia aims to invest about $ 290 billion by 2050 to implement its National Energy Transformation Roadmap. Given India’s leadership in renewable energy, solar, wind and hydrogen markets, there is immense potential for joint ventures in transition financing, policy framework development and ESG reporting for SMEs.Indian companies can contribute significantly with their expertise in green energy solutions. Petronas' subsidiary, Gentari, already operates in India’s renewable energy sector. Expanding such collaborations will help both  nations achieve their green energy goals and enhance  global competitiveness.What key challenges need to  be addressed to further strengthen Malaysia-India business ties? What steps is Malaysia taking to facilitate smoother trade, investment and market entry for Indian businesses?Challenges in bilateral trade include maintaining a balanced trade volume, tariff and non-tariff barriers, and regulatory adjustments. However, active government-to-government dialogue continues to address these issues.To enhance ease of doing business, Malaysia has introduced measures such as simplifying visa processes, establishing the Malaysia-India CEO Forum, and allowing trade settlements in Indian rupees. Additionally, digital payment integration through platforms like NPCI’s UPI with PayNet Malaysia is under discussion, further streamlining financial transactions between the two nations.Beyond existing sectors,  are there any new areas of collaboration that Malaysia is exploring with India?Malaysia is keen to deepen collaborations in AI, semiconductors and EVs. India’s Semiconductor Mission and AI advancements present opportunities for Malaysia to integrate into the global supply chain. Indian IT giants like TCS and Infosys already have a strong presence in Malaysia and we seek to expand cooperation in emerging technology sectors. We are also looking at enhancing our role in the semiconductor industry, particularly in Southern India, where Malaysian companies have already established a presence. By fostering deeper collaboration in AI, semiconductor manufacturing and green energy, both countries can position themselves as leaders in future-ready industries.

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