Malaysia and India to boost ringgit-rupee trade settlement

Malaysia and India have agreed to expedite the use of their local currencies, the ringgit and rupee, in bilateral trade and investment. Prime Minister Anwar Ibrahim stated that the nations’ central banks will collaborate to promote local currency settlement for more efficient transactions, extending to sectors like digital connectivity, energy, and semiconductors. Bilateral trade is projected to surpass the US$18.59 billion recorded in the previous year.

The two countries have elevated their relationship to a comprehensive strategic partnership and will deepen cooperation in areas including trade, semiconductors, the digital economy, energy, agriculture, and defence. They also plan to review and optimize the Malaysia-India Comprehensive Economic Cooperation Agreement, focusing on high-value sectors like semiconductors, digital trade, and green technology. The establishment of the Malaysia-India Digital Council was welcomed, alongside ongoing discussions regarding bilateral payment linkages between their financial networks.

Malaysia also requested expanded air traffic rights from India to facilitate growing tourism and trade. Malaysia’s exports to India last year reached RM52.3 billion, while imports totalled RM27.19 billion, with key exports including palm oil and electrical products.

(Source：Thesun)