Anwar Supports More India-Malaysia Trade Using National Currencies

From Shakir Husain

NEW DELHI, Aug 20 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim said on Tuesday that he supports the idea of more Malaysia-India trade exchange using national currencies.

The prime minister said Bank Negara Malaysia (BNM) has agreed to expand the usage of the rupee and ringgit to grow bilateral trade with India.

This is similar to what has been done successfully with the ringgit in Malaysia’s trade with China, Thailand and Indonesia.

“I responded very positively to the proposal by Prime Minister (Narendra) Modi on the need to use local currencies,” Anwar said during a question and answer session after he delivered the lecture titled “Towards a Rising Global South: Leveraging on Malaysia-India Ties” at the Indian Council of World Affairs (ICWA) think-tank in New Delhi.

Anwar suggested that more countries should use national currencies in trade rather than depending on an “obsolete” monetary system driven by the United States.

Earlier, in his remarks at a joint press conference with Anwar, Modi noted that India-Malaysia trade is making steady progress and transactions can now be settled in rupees and ringgits.

A joint India-Malaysia statement said the two prime ministers, in their talks, “appreciated the collaboration between the Reserve Bank of India and BNM to promote usage of local currency settlement in bilateral trade and investments, and encouraged industries on both sides to further facilitate the invoicing and settlement of trade in local currencies.”

Anwar arrived in the Indian capital of New Delhi on Monday for a three-day official visit to strengthen the 67-year-old India-Malaysia ties and establish a multi-sectoral cooperation agenda for the future.

Accompanying Anwar on the visit are Foreign Minister Datuk Seri Mohamad Hasan; Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz; Tourism, Arts and Culture Minister Tiong King Sing; Digital Minister Gobind Singh Deo; and Human Resources Minister Steven Sim Chee Keong.

This is the prime minister’s first visit to India after assuming office in November 2022.

Total trade between Malaysia and India stands at US$16.5 billion, bolstered by an impressive compounded annual growth rate of 8.5 per cent in the last two decades. (US$1 = RM4.38).

-- BERNAMA