Using UPI for payments in Malaysia might be possible soon
What's the story
India and Malaysia have announced a strategic partnership to integrate their payment systems, the National Payments Corporation of India (NPCI) and PayNet Malaysia. The move is aimed at facilitating low-cost cross-border payments and remittances. The announcement was made after Prime Minister Narendra Modi's visit to Malaysia at the invitation of his Malaysian counterpart Anwar Ibrahim.
Digital council
Malaysia-India Digital Council to enhance collaboration
The two nations also announced the formation of the Malaysia-India Digital Council (MIDC). The MIDC will be a platform for enhancing collaboration in areas like fintech, e-governance, cybersecurity, artificial intelligence (AI), and digital public infrastructure. This is part of a broader effort to strengthen bilateral economic ties and make them more seamless for tourists, students, small businesses, and diaspora-linked remittances.
Trade promotion
Promoting local currency trade
Both governments have promoted the use of local currencies for trade, invoicing, and settlement. This is part of their ongoing collaboration through the Reserve Bank of India (RBI) and Bank Negara Malaysia. The leaders also stressed on connectivity as a key driver for deeper trade and investment ties between the two countries.
Economic expansion
Expanding economic cooperation into semiconductors
The joint statement highlighted plans to expand economic cooperation into semiconductors and advanced manufacturing. The leaders described the chip sector as strategically important and called for deeper value-chain cooperation, technological innovation, workforce development, and supply-chain stability. This is in addition to the existing institutional linkages involving industry bodies and academic collaboration between India and Malaysia.