PM Modi’s Foreign Policy - Malaysia & Beyond

Prime Minister Narendra Modi’s recent visit to Malaysia his first foreign trip of 2026 was more than a routine diplomatic gesture; it was a definitive statement of India’s evolving foreign policy priorities in a rapidly shifting global landscape. During the two-day visit, both India and Malaysia reaffirmed their commitment to a Comprehensive Strategic Partnership, exchanging 11 agreements that span trade, tech, security, and people-to-people cooperation.

This visit reflects a larger vision, one that seeks to balance economic collaboration, strategic interests, and cultural affinity. Modi’s diplomacy has long emphasized deepening ties with Southeast Asia as part of India’s Act East Policy, and Malaysia with its nearly three-million-strong Indian diaspora and important economic linkages stands out as a crucial partner.

Strategic and Economic Dimensions

At the heart of the visit was a clear agenda: economic expansion and technological collaboration. The two countries agreed to bolster cooperation in semiconductors, digital economy, defence, and financial linkages. A notable outcome was the launch of the Malaysia-India Digital Council (MIDC) a platform aimed at fostering joint projects in fintech, cybersecurity, AI, and digital public infrastructure.

This initiative signals India’s ambition to not only participate in global tech supply chains but to serve as a bridge between emerging markets and advanced technology ecosystems. The focus on semiconductors, a sector where Malaysia has significant strengths underscores the strategic pragmatism of India’s diplomacy: combining domestic Make in India goals with international expertise.

Economic diplomacy also took the form of promoting local-currency trade settlements, reducing dependence on third-party currencies and facilitating smoother bilateral commerce. This seemingly technical step could foster resilience against global financial volatility and deepen economic integration.

Security Cooperation and Regional Stability

Beyond economics, Modi’s talks with Malaysian Prime Minister Anwar Ibrahim tackled security and counter-terrorism cooperation, with both leaders denouncing terrorism and pledging enhanced intelligence sharing and defence collaboration. Modi’s firm statement “no double standards, no compromise” on terrorism echoes India’s broader push for collective security norms in the Indo-Pacific.

This alignment is strategically important. Southeast Asia is central to the Indo-Pacific region, where competition between major powers particularly China continues to intensify. By reinforcing ties with ASEAN members like Malaysia, India is not only enhancing its own security architecture but also contributing to a multipolar balance of power that respects regional autonomy and democratic values.

Cultural and People-to-People Bonds

A distinctive feature of this diplomatic engagement is its acknowledgment of cultural linkages. Shared civilizational heritage and the Indian diaspora in Malaysia serve as organic anchors for deeper engagement. Modi’s emphasis on cultural affinity including references to linguistic connections like Tamil signals a foreign policy that values soft power alongside strategic cooperation.

This people-centric diplomacy is not mere symbolism. It strengthens societal trust and mutual understanding, which in turn fosters a favourable environment for trade, education ties, and tourism.

Looking Beyond Malaysia: A Regional Vision

While Malaysia was the immediate focus, the implications extend across the region. India’s commitment to ASEAN centrality and initiatives like declaring 2026 the ASEAN-India Year of Maritime Cooperation highlight its intent to be a reliable partner in Southeast Asia’s security and economic architecture.

India’s engagement in forums such as BRICS with Malaysia welcoming India’s chairmanship and endorsing calls for reforms in global governance institutions further positions the country as a pragmatic leader in global diplomacy.

Diplomacy with Depth and Direction

PM Modi’s Malaysia visit encapsulates the current phase of India’s foreign policy, astute, multifaceted, and forward-looking. It melds economic ambition with strategic prudence, regional cooperation with global responsibility, and cultural affinity with diplomatic coherence.

In a world marked by geopolitical flux, India’s approach under Modi seeks not just to navigate complexity, but to shape a regional order where partnerships are built on shared interests, mutual respect, and long-term collaboration. Malaysia is an important chapter in that broader narrative one that will likely resonate across Asia and beyond in the years to come.