Malaysia and India are looking at using national currencies in bilateral trade transactions to expand economic cooperation, Foreign Minister Datuk Seri Dr Zambry Abdul Kadir said.
It was one of the issues discussed during the Joint Commission Meeting (JCM) the foreign minister co-chaired with his Indian counterpart Subrahmanyam Jaishankar in New Delhi on Tuesday.
“Using local currencies is another way forward for trade between the two countries,” Zambry told reporters.
“Malaysia started it with Thailand and Indonesia. Now we have proposed it to India,” he said, adding that the Indian side is receptive to the idea.
The foreign minister said while the move may be viewed in “certain quarters” as de-dollarisation, Malaysia looks at it as a way to strengthen the national currencies and protect them against “fluctuations all the time”.
India is Malaysia’s top economic partner in South Asia, with bilateral trade in 2022 valued at RM86.2 billion.
The joint commission meeting was held for the first time since 2011, and resulted in the two countries renewing their commitment to further strengthening relations in a range of sectors.
The discussions covered areas such as the digital economy, semiconductor and chip manufacturing, defence, tourism, healthcare, financial technology, the digital economy, agriculture, education and food security.
Zambry said the Indian government had promised to look into some technical issues that the Malaysian carriers were facing in adding more flights on the routes to India.
It was highlighted that “small issues” should not be a “major hindrance” in promoting connectivity between the two countries.
The JCM also discussed amending the Malaysia-India Comprehensive Economic Partnership Agreement to reflect the new economy and latest developments in the digital sector. The two sides need to take a fresh look at some of the areas in the free trade deal that was signed in 2011, the minister said.
