India, Malaysia to elevate ties to ‘comprehensive strategic partnership’

India and Malaysia will boost cooperation in areas such as semiconductor, financial technology and defence production, Indian prime minister said after meeting his Malaysian counterpart, as the two countries look to reset ties.

Relations between the two countries soured around late 2019 following some remarks by largely Muslim Malaysia's then Prime Minister Mahathir Mohamad against New Delhi removing the autonomy of Muslim-majority region of India-administered Kashmir.

That had also hit India's purchases of Malaysian palm oil.

"We have decided that we will elevate our cooperation to the level of ‘Comprehensive Strategic Partnership’," Modi said, without specifying what that will imply but noting that Malaysia had invested $5 billion in India in the past year.

"In areas which require new and modern technology like semiconductor, fintech, defence industry, AI and quantum technology, we will increase cooperation."

He said the two countries have also been conducting bilateral trade in their rupee and ringgit currencies. India has been trying to boost the acceptability of the rupee as sanctions on coun tries like Russia exposes it to its heavy reliance on the dollar.

Malaysian Prime Minister Anwar Ibrahim said his country would reinvigorate relations with India in all fields.

"There are so many areas that we need to explore further," he said.