SERI KEMBANGAN: India’s Unified Payments Interface (UPI) system is set to enter the Malaysian market as Malaysia and India deepen their longstanding economic ties, Indian Prime Minister Narendra Modi announced.
He said nearly half of the world’s real-time digital transactions now take place in India, largely driven by the success of the UPI platform.
“The Malaysia-India Digital Council is paving new pathways for our digital collaboration. I am happy to share with you that India’s UPI will come to Malaysia soon,” Modi said while addressing the Indian diaspora at a reception held in conjunction with his two-day official visit to Kuala Lumpur yesterday.
Modi said the Malaysia-India Digital Council has been instrumental in opening new avenues for collaboration between the two countries.
He added that Indian companies have long been keen to work with Malaysia.
“It is a privilege that we played a part in establishing Malaysia’s first and Asia’s largest insulin manufacturing facility. More than 100 Indian IT companies operate in Malaysia today, generating thousands of jobs,” he said.
India-based Biocon Biologics, a major insulin supplier to Malaysia, operates a US$350mil integrated insulin manufacturing facility in Johor, which is the largest of its kind in Asia.
Modi also announced new scholarship opportunities for Malaysian students wishing to pursue studies in India.
“We are also going to grant the Thiruvalluvar Scholarship for students to study in India. We look forward to welcoming participants under the Know India programme.
“We have also continued our support for the Indian Scholarship and Trust Fund.”
Modi added that India made a historic decision several months ago by extending eligibility for the Overseas Citizenship of India card to Malaysian citizens of Indian origin up to the sixth generation.
“You will be pleased to know that we will soon be opening a new Indian consulate in Malaysia.”
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia and India are now strengthening cooperation in areas that will define the century ahead.
“The Malaysia-India Digital Council reflects this shared ambition. The linkage between India’s UPI and Malaysia’s PayNet system will make cross-border payments simpler for businesses, students and clients,” Anwar said in his speech.
He noted that sectors such as semiconductors, advanced manufacturing, digital finance, artificial intelligence and cybersecurity present strong opportunities for collaboration.
“Malaysia’s established electronics ecosystem and India’s expanding market and design capabilities are natural complements,” he said.
As global supply chains continue to reconfigure, Anwar said there is strong potential for the region to emerge as a more resilient and trusted hub for high-tech manufacturing.
Modi’s last official visit to Malaysia was in November 2015, although he made a brief stopover in the country on May 31, 2018.
He is accompanied on this visit by External Affairs Minister Dr S. Jaishankar and senior Indian government officials.
Earlier, Anwar welcomed Modi at the tarmac of the Kompleks Bunga Raya at KLIA, and the two leaders travelled to the reception in the same vehicle.
Both prime ministers were welcomed with a single, continuous five-minute choreographed performance by 800 dancers titled Swagatham. The performance also earned the dancers a place in the Malaysia Book of Records.
During his speech at the reception, Modi spoke fondly of his friendship with Anwar and the longstanding ties between the two nations.
“Malaysia has the second-largest community of Person of Indian Origin in the world. There is so much that connects Indian and Malaysian hearts,” he said.
“You are a living bridge that links us. You have connected roti canai with the Malabar paratha,” he said, sharing anecdotes about similarities in the food and languages of the two cultures.
“The flavour is so familiar, whether in Kuala Lumpur or Kochi. We understand each other so well. It must be due to the large number of common words between our languages and Malay.”
According to Wisma Putra, both leaders are expected to review Malaysia-India bilateral relations and explore further cooperation, particularly in trade and investment, defence and security, labour, tourism, connectivity, agriculture and education.
Discussions will also cover regional and international issues of mutual interest, and the leaders are expected to witness the exchange of several memoranda of understanding across various sectors.
In 2025, total trade between Malaysia and India reached RM79.49bil (US$18.59bil).
Malaysia’s exports to India amounted to RM52.30bil (US$12.24bil), while imports stood at RM27.19bil (US$6.35bil).
