Malaysia Positioned As Key Entry Point For India’s Regional Trade Expansion
KUALA LUMPUR, Feb 3 (Bernama) -- India is increasingly viewing Malaysia as a strategic gateway to expand its economic footprint in Southeast Asia, using the country as a springboard to deepen trade and business engagement across the region, an academician said.
University of Nottingham Malaysia Assistant Professor of Business Economics Dr Chee Meng Tan said India is seeking strategic partners to enhance its influence and visibility in Southeast Asia, a region that has drawn heightened attention in recent years from major global players including China and the United States.
“I think India is looking for a strategic partner and it’s also trying to increase its influence and visibility within the region. If you’ve noticed for the past couple of months and a year or two, Malaysia and even Southeast Asia has gotten a lot of traction from China, America and other various countries,” he said during Bernama World, titled Malaysia-India Relations: The Road Ahead, produced by Bernama TV.
In a related development, US President Donald Trump announced on Monday that tariffs on Indian goods will be reduced to 18 per cent following a trade deal with Indian Prime Minister Narendra Modi, under which India has agreed to halt purchases of Russian oil and lower trade barriers on US exports.
Touching on trade relations, Tan said China remains Malaysia’s largest trading partner, followed by Singapore and the United States, accounting for a substantial share of the country’s total trade.
India, while still a moderate trading partner, has shown strong growth potential, with bilateral trade valued at about US$20 billion, or approximately RM80 billion to RM90 billion.
Tan noted that global companies, particularly in the technology sector, are restructuring supply chains to reduce dependence on China, with manufacturing increasingly shifting to Southeast Asia and South Asia.
“For example, Apple has expanded manufacturing capacity in India, but it still requires key components such as semiconductors, where Malaysia is the world’s sixth-largest exporter,” he said.
He added that closer collaboration between Malaysia and India could deliver significant benefits, especially in technology, semiconductors and advanced manufacturing.
However, Tan cautioned that while the growing engagement is beneficial and necessary for Malaysia, the country must carefully balance its foreign and economic relations to avoid being seen as aligning too closely with any single major power.
He also highlighted Malaysia’s strategic location, noting that the Straits of Malacca is a vital export, import, and petroleum transport route, essentially controlled by three countries: Indonesia, Malaysia and Singapore, making it a coveted corridor for India, the US and China.
“We may not be very large in terms of population or economy, but with our technological capabilities, investment potential, and strategic location in Southeast Asia, Malaysia is well-positioned to attract major global interests.
“If Malaysia plays its cards well, we could be in a position to make certain demands going forward,” he said.
-- BERNAMA
