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Narendra Modi in Putrajaya, Malaysia

The Prime Ministers of India and Malaysia had a warm meeting in the administrative capital of Malaysia, Putrajaya

Policy Pulse
Publish Date: Nov 23 2015 12:45PM | Updated Date: Nov 23 2015 12:51PM

Narendra Modi in Putrajaya, Malaysia

Prime Minister Narendra Modi met with his counterpart Najib Razak today, talking about stronger bilateral cooperation between the two countries.

They met in the city of Putrajaya, 25 km south of the national capital Kuala Lumpur that acts as the federal administrative centre of Malaysia. It is named after Malaysia’s first Prime Minister, Tunku Abdul Rahman.

Following the overcrowding and traffic situation in Kuala Lumpur, in 2001 the then Malaysian Prime Minister Dr. Mahathir Mohammad, began the process of shifting of the Malaysian government offices to Putrajaya. He also conferred the city with the status of the third Federal Territory after Kuala Lumpur and Labuan.

The two Prime Ministers met one-on-one in the beautiful well-planned city. They discussed growth in the areas of trade and development. Presently, the two countries share a trade volume of $10.5 billion. It is expected to touch $25 billion by 2020.

Defence has been one major area of cooperation between the two countries. The first MoU for this was signed in 1993. Since then there has been a warm and regular exchange of high level officials between both sides.

In addition, bilateral trade has upped from US$0.6 billion in 1992 to US$13.32 billion in 2012. India is the 27th largest investor in India with cumulative FDI inflows.  

India, also has the largest presence of Malaysian construction companies outside Malaysia. They have completed 69 construction projects worth US$3.5 billion in India, while 19 projects worth 2.4 billion are under various stages of implementation. Under a partnership with Malaysian Airports, GMR completed airport in Hyderabad in 2008, and the second one in Delhi in July 2010.

At present, Indians can get a visa on arrival at the Malaysian airport showing the warm and trusting relationship shared between the two countries.