Prime Minister Narendra Modi will travel to Malaysia on February 7-8, marking his first visit to the Southeast Asian nation since India and Malaysia elevated their relationship to a Comprehensive Strategic Partnership in August 2024. The two-day visit, undertaken at the invitation of Malaysian Prime Minister Anwar Ibrahim, is expected to result in agreements spanning defence cooperation, digital payments and semiconductor collaboration.

This will be Modi’s third visit to Malaysia and his first overseas trip in 2026. The visit assumes added significance after the Prime Minister was unable to attend the ASEAN summit hosted by Kuala Lumpur last year due to domestic political commitments, including the Bihar assembly elections. Officials said the trip reflects renewed momentum in India’s engagement with Southeast Asia.

Defence Cooperation Takes Centre Stage

Defence ties are set to be a major focus of discussions, with India pursuing the sale of Dornier aircraft to Malaysia. New Delhi is also prepared to offer maintenance, repair and overhaul support for Scorpene submarines and Su-30 fighter jets, platforms operated by both countries. Indian officials have indicated that defence cooperation is being viewed through a long-term partnership lens rather than as isolated transactions.

The proposed defence engagements align with India’s broader push to expand defence exports and position itself as a reliable security partner in the Indo-Pacific. For Malaysia, cooperation with India offers access to cost-effective platforms and technical support while diversifying defence partnerships amid evolving regional security dynamics.

Bilateral talks are expected to cover maritime security, joint training opportunities and capacity building. Officials said defence collaboration has gained momentum since the elevation of ties last year, with both sides keen to translate strategic intent into concrete outcomes.

UPI Expansion And Semiconductor Collaboration

Digital payments are another key deliverable of the visit. The National Payments Corporation of India is expected to sign an agreement with Malaysia’s Payments Network to enable the use of India’s Unified Payments Interface in Malaysia. If finalised, the pact would expand UPI’s footprint in Southeast Asia and ease transactions for travellers, students and businesses operating between the two countries.

The agreement is seen as part of India’s effort to internationalise its digital public infrastructure and deepen financial connectivity with partner nations. Malaysia already hosts a large Indian diaspora and receives significant tourist flows from India, making it a natural candidate for UPI integration.

Semiconductors will also feature prominently on the agenda. India and Malaysia are working towards a government-to-government memorandum of understanding in the sector. Malaysia accounts for an estimated 30 per cent of global semiconductor testing and packaging exports, positioning it as a critical partner for India as it seeks to strengthen its domestic chip ecosystem and reduce supply chain vulnerabilities.

Trade, Diaspora And Regional Outreach

Malaysia is India’s third-largest trading partner within ASEAN, with bilateral trade touching around $20 billion in the 2024–25 financial year. Both sides are aiming to scale this up to $25 billion by 2026 through greater cooperation in manufacturing, technology and services. The 10th India–Malaysia CEO Forum will be held alongside the visit, bringing together business leaders to explore investment opportunities.

Modi is also scheduled to address the Indian diaspora at a community reception on February 7. Nearly 15,000 people are expected to attend the event, titled “Selamat Datang Modi Ji”. Cultural performances are planned, including a large-scale dance presentation by members of the Indian community.

India and Malaysia share deep people-to-people ties, underpinned by a 2.9 million-strong Indian community, the third-largest Indian diaspora in the world. Officials said diaspora engagement remains a vital pillar of bilateral relations.

The visit underscores India’s Act East Policy and its emphasis on strengthening strategic, economic and cultural ties with Southeast Asia. Modi will hold formal talks with Anwar Ibrahim at the Seri Perdana Complex in Putrajaya on February 8, with discussions expected to span trade, investment, renewable energy, education and regional security.

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