Strengthening India-Malaysia Ties: A New Era of Technological and Cultural Collaboration

Image: Prime Minister Narendra Modi & Malaysian Prime Minister Dato’ Seri Anwar bin Ibrahim
Image Courtesy: My Startup Life
India and Malaysia are taking significant strides towards strengthening their bilateral relationship.
The recent exchange of Memorandums of Understanding (MoUs) and agreements between Prime Minister Narendra Modi and Malaysian Prime Minister Dato’ Seri Anwar bin Ibrahim marks a new chapter in their partnership.
This blog explores the key areas of collaboration, focusing on technological advancements, fintech integration, and the expansion of educational and cultural ties.
Introduction
In a landmark event at Hyderabad House in Delhi, Prime Minister Narendra Modi and his Malaysian counterpart Dato’ Seri Anwar bin Ibrahim took meaningful steps to deepen the relationship between their nations.
By exchanging crucial MoUs and agreements, the two leaders set the stage for enhanced cooperation across various sectors, particularly in emerging technologies and education.
Untapped Potential in Technology and Fintech
During a joint press conference following the exchange, Prime Minister Modi highlighted the immense, yet largely untapped, potential in the India-Malaysia relationship.
He emphasized the importance of cooperation in new technology areas such as fintech, semiconductors, artificial intelligence (AI), and quantum computing.
One of the most significant announcements was the plan to link India’s Unified Payments Interface (UPI) with Malaysia’s PayNet, a development that could greatly enhance digital payments between the two countries.

Image: Prime Minister Narendra Modi
Image Courtesy: Mint
As PM Modi stated,
“We have more potential in our relationship. We must increase our cooperation in the field of new technology areas, such as fintech, semiconductors, AI, and quantum… We will work on integrating India’s UPI and Malaysia’s PayNet.”
India’s Growing Influence in Malaysia’s Digital Payment Market
Malaysia has become a fertile ground for fintech innovation, making it an attractive destination for Indian startups.
The country’s supportive regulatory environment and growing demand for digital financial services have paved the way for Indian companies like Pine Labs and Razorpay to make significant inroads, particularly in the digital payments sector.
Razorpay’s acquisition of Curlec, a Malaysian recurring payment solutions provider, was a pivotal moment in its expansion.
Rebranded as ‘Curlec by Razorpay,’ the company has broadened its offerings to become a full-stack digital payment gateway, now serving over 700 businesses in Malaysia, including prominent names like Tune Protect and Mary Kay.
Curlec by Razorpay’s involvement in DuitNow, Malaysia’s real-time payment system similar to India’s UPI, further showcases its commitment to driving cashless transactions across the country.
DuitNow is part of Malaysia’s larger digital public infrastructure initiative, PayNet, and Curlec’s efforts are helping to realize Bank Negara Malaysia’s (BNM) vision of a cashless society.
The success of Indian fintech startups in Malaysia is not just due to their innovation but also because of the country’s supportive regulatory framework. Authorities, particularly Bank Negara Malaysia, have played a crucial role in fostering a conducive environment for fintech growth.
Expanding Educational and Cultural Ties
Beyond fintech, the leaders also focused on enhancing educational and cultural ties between the two nations.
Prime Minister Modi announced several initiatives, including scholarships for Malaysian students and training programs for government officials.
Under the Indian Technical and Economic Cooperation (ITEC) program, 100 seats will be allocated specifically for Malaysians to pursue advanced courses in fields like cybersecurity and AI.
In addition to educational initiatives, the cultural exchange between the two countries is set to deepen. An Ayurveda Chair will be established at Malaysia’s University Tunku Abdul Rahman, and a Thiruvalluvar Chair will be set up at another Malaysian university.
These initiatives are expected to strengthen the cultural and educational bonds between India and Malaysia.
Prime Minister Modi expressed his gratitude to Prime Minister Anwar and his team for their cooperation in these initiatives, stating that they reflect the growing partnership between India and Malaysia.
Conclusion
The recent developments in India-Malaysia relations signal a new era of collaboration, particularly in the fields of technology, education, and culture.
As both nations continue to explore the untapped potential in their partnership, the integration of fintech systems like UPI and PayNet, along with the expansion of educational and cultural exchanges, will play a crucial role in shaping the future of their relationship.
The steps taken by Prime Minister Modi and Prime Minister Anwar mark a significant move towards a stronger and more dynamic India-Malaysia partnership.
Comments