New Delhi: India and Malaysia are expected to finalize several agreements, including one between the National Payments Corporation of India (NPCI) and Malaysia’s Penet, and explore ways to enhance defense and security cooperation during Prime Minister Narendra Modi’s visit to the Southeast Asian nation this weekend, senior officials said on Thursday.
Representative image.The two sides are looking at the possibility of cementing memorandum of understanding (MoU) for cooperation in semiconductor industry, disaster management, training standards and certification for seafarers, anti-corruption and healthcare, P Kumaran, Secretary (East) in the Ministry of External Affairs told a press briefing.
“NPCI is ready to sign an agreement with PayNet during the visit. This will be one of the expected outcomes,” he said.
Kumaran noted that Malaysia has a very strong semiconductor ecosystem, with semiconductors and allied products comprising about 30% of the country’s exports. “We are in the process of establishing a multi-level cooperation mechanism through a Government-to-Government Memorandum of Understanding, including setting up research and development and fabrication centers and testing centers”.
Defense and security have emerged as key areas of cooperation, and the Indian side is eyeing the sale of Dornier aircraft to Malaysia and the possibility of cooperation on the mid-life upgrade and refurbishment of the Scorpene submarines operated by both sides, Kumaran said.
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Both countries’ air forces operate Russian-origin Su-30 combat jets, with India offering modifications, upgrades and mid-life maintenance for these aircraft. “We are also looking at the possibility of supplying naval platforms by Indian shipyards,” he said. “These are all areas that look promising, we hope to be able to do something in these areas.”
Modi is visiting Malaysia on February 7-8, when the two sides are expected to set an agenda for future engagements and progress in business relations. Modi will hold talks with his Malaysian counterpart Anwar Ibrahim and interact with industry and business representatives and the Indian community.
Malaysia is India’s third largest trading partner in the ASEAN region, with two-way trade worth about $20 billion. Trade has diversified beyond commodities such as palm oil and includes agricultural products, chemicals, minerals and machinery. Major Malaysian investors such as Petronas and UEM Group have a strong presence in India.
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Malaysia also plays an important role in the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA), Kumaran said. “We have agreed on the terms of reference, and…the Ministry of Commerce has engaged with ASEAN, exploring various options to try to create a better balance of trade between India and ASEAN,” he said.
“Technical elements are being discussed between India and ASEAN in terms of offering more lines under a liberalized regime. I think there is a broad sense that the overall average tariff in ASEAN needs to improve over the existing level,” Kuamaran said, adding that the focus is on a minimum percentage for each ASEAN member state to achieve a better trade balance.
Kumaran was responding to a question on India’s efforts to extradite controversial missionary Zakir Naik, who is accused of money laundering and terrorism, saying that New Delhi has raised the issue during past visits and it is expected to be considered during the upcoming visit. “We will continue to take up this issue until all the technical processes are completed. We hope that we can get the results,” he said.
