Neither Friend Nor Foe: Geopolitical Dynamics of India–Malaysia Relations
11 April 2024 . #2404
Mayilvaganan M and Nurul Aishah Ab Raman examine the geopolitical dynamics of the India-Malaysia relations within the scope of the Indo-Pacific region.
The historical ties between India and Malaysia have been significantly influenced by a complex and multi-faceted relationship that has evolved over time. Collaboration in various domains, including trade, cultural exchange, and diplomatic interactions, has played a crucial role in strengthening bilateral relations. However, it is important to acknowledge that there have been instances of tension and discord, reflecting the nuanced nature of their association. While both countries hold strategic positions as maritime powers in the Indo-Pacific, they are not formal strategic partners in true sense. Kuala Lumpur’s engagement with India in Indo-Pacific lacks decisiveness. Global geopolitical shifts, economic considerations, and regional developments, influence the bilateral dynamic of both the countries. This article aims to explore the complexities of the bilateral relationship between India and Malaysia within the evolving dynamics of the Indo-Pacific region. Particularly, analyzes the underlying factors that impede the establishment of effective cooperation in the Indo-Pacific, despite the clear potential for such collaboration.
Introduction
The historical context of diplomatic relations between India and Malaysia is extensive and diverse. Their relations can be traced back to ancient maritime trade routes, with links between Malaysia and the Indian Subcontinent dating as far back as 110 AD. Notably, the Kadaram (Kedah) and Malacca sultanates (Melaka) had historical and trade connections with India, and were even under South Indian kinship. Archaeological findings in Bujang Valley indicate the presence of migrants from ancient India in the region. Additionally, the Malay Archipelago saw regular sea voyages from India. The British, during the 18th and 19th centuries, brought in Indian laborers to Malaysia for the purposes of forest clearing, plantation work, mining, and construction, thus, reinforcing the longstanding connection between India and Malaysia.
Over time, the influence of the Indian diaspora (about 7 percent) and cultural affinities has played a significant role in shaping this relationship. Furthermore, spanning across the realms of art and cuisine, the exchange of ideas, philosophies, and values has greatly bolstered the relationship between India and Malaysia. This profound blending of cultural expressions has not only fortified the ties between the two nations but has also contributed to a broader global understanding of the shared heritage and interconnectedness of diverse cultures. The significant presence of Indian descents also occasionally led to tensions. But the cultural similarity has undoubtedly served as a tool of soft power in fostering mutual understanding between the two nations.
Notably, with Malaysia’s economic growth and India’s Look East policy in the 1990s, both countries have emerged as pivotal trading partners, engaging in substantial bilateral trade and investments. The increasing economic ties have led to a flourishing exchange not only in terms of goods and services but also in terms of technology and expertise. As a result, both Malaysia and India have been able to leverage each other’s strengths and resources, leading to a more robust and diversified economic landscape for both countries. This partnership has not only brought economic benefits but has also fostered cultural exchange and people-to-people ties, strengthening the overall bond between the two nations.
Over time, both countries have engaged in regular high-level dialogues and negotiations, aimed at strengthening cooperation in strategic, defense, and security domains, while also safeguarding their respective interests. In a sense, the intricacies of this relationship are magnified by the varied cultural, political, and economic environments within each nation.
Unequal Equals
The significance of analyzing the India-Malaysia relationship becomes even more pronounced when viewed through the lens of the Indo-Pacific, a region of increasing geopolitical importance.
India, a dominant regional power in Indo-Pacific with substantial technological capabilities, a large military, expansive geographical territory, a significant population, and an expanding economy, maintains a steadfast focus on bolstering its relations with the Southeast Asian countries. The introduction of India’s Look East Policy (LEP) in 1991 prominently highlighted the efforts to strengthen connections between New Delhi and Kuala Lumpur, as well as the broader Southeast Asia region.
The geopolitical changes and evolving regional dynamics in the Indo-Pacific region, significantly affected India and Malaysia’s strategic positioning and bilateral ties. Specifically, the geopolitical importance of the Indian Ocean and the South China Sea interlaces their interests and concerns, forming a complex backdrop for their engagement. Consequently, the diplomatic relations between India and Malaysia have experienced fluctuations, as both nations seek to uphold their respective national interests while seeking common ground on international matters.
In the realm of security and defense, India and Malaysia have sought to enhance collaboration to address shared challenges and contribute to regional stability. This encompasses joint military exercises, counterterrorism initiatives, and maritime security efforts. Furthermore, their shared interests in maintaining peace and security in the region have spurred coordinated efforts to address common concerns and uphold international norms. Consequently, regular visits from both parties, including at the ministerial level, as well as the interactions of the trilateral services and the regular periodical visits of Indian Naval ships to Malaysian Ports with interactions with the Malaysian Navy and Maritime Enforcement Agency, are observed on a regular basis.
India also provides training to Malaysian defense personnel on the Sukhoi SU 30 fighter planes and Scorpene submarines. Additionally, Indian naval ships INS Delhi participate in Malaysia’s Langkawi International Maritime and Aerospace Exhibition. The provision of essential aid to the Malaysian search operation in the aftermath of the disappearance of Malaysian Airlines Flight MH 370 from Kuala Lumpur to Beijing on March 8, 2014, and the subsequent search in the Indian Ocean by India serve as other notable examples.
In 2015, both India and Malaysia entered into what was called an Enhanced Strategic Partnership (ESP) that aimed to elevate the bilateral relationship between the two countries across various sectors such as political, security, economic, education, socio-cultural, defense, and technical cooperation. Both India and Malaysia have indeed joined the IPEF (Indo-Pacific Economic Framework) too. By becoming part of the IPEF, both are poised to leverage the potential to strengthen trade relations, foster investment opportunities, and bolster economic development in Indo-Pacific.
However, in the domain of political and strategic affairs, the association between India and Malaysia has been marked by an absence of distinct alignment, thus, remain neither friend nor foe. Although participating in customary joint patrols, naval exercises, port calls, and trade collaborations, these activities have not developed into a deeply strategic partnership in the true sense. Also, with respect to military hardware, its more like seller-buyer relationship.
Several factors contribute to this situation, including geopolitical considerations, historical tensions, and differing foreign policy priorities.
Foremost, both nations have distinct strategic alignments and interests, which significantly impact their robust strategic partnership. For instance, Malaysia, having achieved upper-middle-income status by 1996, appeared to show more interest in fostering relations with East Asian countries such as Japan and South Korea, as well as with Middle powers like Saudi Arabia, rather than prioritizing the strengthening of ties with India. India’s attention on the other hand was primarily directed towards domestic matters, such as Kashmir, which necessitated collaboration with the Russia.
Apparently for Malaysia, India is unequal compare to their economic standards as the economic disparity between Kuala Lumpur and India is indeed significant. Malaysia stands as a bustling metropolis with a well-developed infrastructure and a thriving economy, while India, as a diverse and vast country, faces its own set of economic challenges. On the contrary, for India, Malaysia exhibits relatively lower military capabilities, territorial expanse, and technological advancements.
The distinct strategic priorities and alliances have also led India and Malaysia to chart divergent paths. The geopolitical landscape in Asia, including the Indo-Pacific region, has led these two nations to pursue distinct paths to protect their national interests and promote regional stability.
India’s burgeoning strategic partnership with the United States since early 2000s has propelled it towards a more assertive role in the Indo-Pacific region, amplifying its influence and shaping its foreign policy outlook. In contrast, Malaysia’s emphasis on maintaining non-alignment and fostering cooperative relations within the Association of Southeast Asian Nations (ASEAN) framework has entrenched its commitment to a different set of strategic priorities. These divergent approaches underscore the complex interplay of geopolitical factors and national interests in shaping the foreign policies of these two nations. This has resulted in the two countries finding themselves in different camps on certain issues like Kashmir, Pakistan and on Islam, thus, shaping the nuanced nature of their relationship.
Despite differing political perspectives, trade relations have remained consistent and exerted significant influence on their interactions. Both nations have functioned as pivotal trade allies. The economic interdependence between the two nations has led to multifaceted cooperation in areas such as trade, investment, and technological exchange. At the moment, India is Malaysia’s 10th largest trading partner with a net set for $20 billion US dollars in 2023, which mainly comprised of palm oil, oils and gas, automobiles, chemicals, and finished goods. The Palm oil import was 9.79 million metric tons in 2022/23 from Malaysia. Similarly, the Foreign Direct Investment (FDI) inflow, totaling US$1.17 billion from April 2000 to March 2023 from Malaysia, Kula Lumpur stands as the 28th largest contributor to Indian FDI.
On occasion, disparities in trade policies and geopolitical allegiances have exerted pressure on their economic ties too.
Spoilers
The historical legacies, cultural affinities, and ideological differences underline the complexities of the relationship and its broader strategic implications on interactions between India and Malaysia in Indo-Pacific. There are some significant spoilers that have an impact on bilateral relations.
First, the historic tensions between India and Pakistan have significantly impacted India’s perception of Malaysia’s foreign policy, particularly in relation to its approach towards Islam. Malaysia’s vocal support for Islamic unity, spearheaded by former Prime Minister Mahathir, has raised concerns in New Delhi. The complexity of the bilateral relationship has been particularly influenced by Mahathir Mohammad’s efforts to advocate for Muslim brotherhood, which holds significant importance in this context.
Second, Malaysia’s involvement in drawing Pakistan into the ASEAN regional forum has at times deepened India’s concern, despite opposition from India. This has raised worries about Malaysian support or leniency toward Islamic separatist movements in the region.
Third, the former Malaysian Prime Minister Mahathir Mohamad’s speech at the 74th session of the United Nations General Assembly, where he accused India of “invading and occupying” Kashmir, significantly strained the relationship between the two countries. Partially, India’s perceived lack of responsiveness to Malaysian interests concerning internal matters in Kashmir, driven by its consideration for Islam and the Muslim community, has added further complexity to the bilateral relationship.
Particularly, the Malaysian Prime Minister’s statement on Kashmir led India to retaliate by halting the purchase of palm oil in October 2019. This in turn had significant repercussions on their economic relations.
Fourth, the perception of the rise of the Hindu nationalism in India since 2014 among the radical Malay-Muslim policy makers in Malaysia has also contributed for slowing down of robust relationship between two countries. Unfortunately, Malaysia also viewed its ethnic Indian population through the same lens. The Malaysian Indian community were perceived as not fully “loyal to the country,” but rather as “identify themselves with their countries of origin.”
Fifth, Malaysia’s stance on India’s request for the extradition of Zakir Naik, a controversial radical Islamic preacher/speaker who departed the country in 2016, has been a point of contention in the bilateral relationship. In fact, Malaysia has granted permanent residency to Naik, despite his implication in extremism and money laundering cases in India. Malaysia, as a Muslim-majority country, believes it has the sovereign right to make decisions in response to requests from other nations.
Sixth, following the 2007 ethnic Indians protest and subsequent arrests in Malaysia, there was a notable escalation in national sentiments concerning the treatment of Malaysian Indians in India. This led to a significant confrontation among Netizens, resulting in a profound impact on the bilateral relationship between the two nations. Individuals from both sides fervently expressed their opinions and emotions about the prevailing issues, placing substantial strain on the relationship. This had a modest effect on policymakers and the diplomatic relations between the two parties.
The aforementioned aspects demonstrate the complex intertwining of international relations, religious ideologies, and geopolitical factors in the relations between India and Malaysia. The established confrontational approaches have resulted in decreased interaction between the two nations, underscoring the nuanced and intricate nature of international relations, especially within the context of historical hostilities and geopolitical complexities.
These sort of periodic contestation and unsteady political partnership between India and Malaysia have been significant factors contributing to the complexity of their strategic relationship in the Indo-Pacific domain. The fluctuating nature of their interactions has hindered the development of a strong and productive partnership in this critical region. As both countries play pivotal roles in the dynamics of this region, their inability to cultivate a more reliable and cooperative engagement has implications for regional stability and global geopolitics. It remains essential for both nations to address these challenges and strive for a more consistent and constructive partnership in near future in order to foster a more productive environment in the Indo-Pacific domain.
Prospects
India is a visible maritime power with great presence in Indo-Pacific in a decade. Contrary, Malaysia lacks a clear Indo-Pacific policy, despite the existential importance of the maritime domain to the nation. Malaysia shares maritime boundaries with all the ASEAN littoral states and faces unresolved disputes in some cases.
Even though Malaysia may consider India a non-stakeholder in the affairs of seas beyond the Malacca Strait, India’s increasing influence and expertise in maritime security could prove beneficial to Malaysia in safeguarding the Malacca Straits from emerging non-traditional security threats in Southeast Asia. Particularly, due to the lack of a comprehensive maritime policy at the highest level to coordinate responses to the diverse interests and threats within Malaysia’s maritime zones coupled with limited maritime capability, it would be advisable for Malaysia to strengthen its maritime cooperation with India in the Indo-Pacific. Through collaboration, these countries can efficiently tackle mutual maritime obstacles and strengthen the stability and security of the wider Indo-Pacific region.
Importantly, ensuring the protection of their maritime space and the security of the vital Straits of Malacca presents a notable opportunity for both nations to engage. The region carries substantial significance due to the passage of energy resources, raw materials, and finished goods. Any potential disruption to these flows could have far-reaching impacts on various industries and economies. Also, the uninterrupted and secure operation of maritime communication routes is of utmost importance, especially in the context of Malaysia’s presence in South China Sea. Therefore, it is crucial for Malaysia to tactfully navigate its position amidst the conflicting interests of major powers in the Indo-Pacific region.
Also, India and Malaysia have the potential to cultivate a pan-ASEAN (Association of Southeast Asian Nations) approach through collaboration with other ASEAN littoral states in the Straits of Malacca to address the issue of piracy. Establishing a multilateral pan-ASEAN security framework, such as the Combined Maritime Forces (CMF) or the Contact Group on Piracy in the Straits of Malacca (CGPSM), could be a viable option for both Malaysia and India.
India, particularly, given its position where it is well-placed to play a greater role and shape the maritime security architecture in the region could take initiative in the regard. Further, expanding the training program for Malaysian naval personnel, defense officers, and civilian personnel involved in maritime administration, would be worth considering. This initiative can contribute to enhancing synergy between the two parties.
India and Malaysia may explore technological collaboration in areas such as radar, Unmanned Ground Vehicle (UGV), Robotics, and more. Additionally, they can consider bolstering defense equipment and technology cooperation through a joint initiative involving both public and private sectors in order to mutually reinforce technological collaboration. Furthermore, they could seek opportunities to improve science-based management and conservation of marine living resources, as well as to combat illegal, unregulated, and unreported (IUU) fishing in the Bay of Bengal and Indian Ocean.
Additionally, considering India’s expertise and skills in disaster risk management, Malaysia stands to benefit significantly from partnering with New Delhi on disaster preparedness and management in the region. Collaborative efforts such as geodetic satellite data-sharing and the joint development of early warning systems for forecasting and communicating disaster-related risks and hazards could greatly enhance bilateral cooperation in the maritime domain.
Apart from the maritime and defense sectors, the education industry also holds significant potential for fostering partnerships between India and Malaysia. This collaboration has the capacity to yield long-term benefits, contributing to a stronger partnership between the two nations. It is imperative to facilitate commercial education and training programs involving Indian education providers and Malaysian institutions and businesses. Additionally, fostering cooperation between medical innovation hubs in India and Malaysia warrants due consideration.
Finally, it is worth considering enhancing collaboration in the Digital Economy for both India and Malaysia. Expanding collaboration in the digital economy between India and Malaysia holds significant potential for mutual growth and advancement. By leveraging each country’s unique strengths and expertise, both nations can foster innovation, knowledge exchange, and economic development in the digital sphere. Embracing collaborative initiatives can lead to the creation of new opportunities for businesses, entrepreneurs, and practitioners in sectors such as technology, e-commerce, and digital services. The only thing that New Delhi requires to keep in mind is that it should be sensitive to the needs and priorities of Malaysia.
Conclusion
The longstanding history of trade, migration, and cultural exchange has established the foundation for interpersonal connections and mutual understanding between India and Malaysia. The association between the two nations is primarily marked by a combination of collaboration and competition, as well as cooperation and divergence. Notably, the intricate nature of India-Malaysia relations has forged a connection that exists beyond mere amicability or hostility. This complex association has been molded by historical, political, and economic elements, resulting in a multifaceted interplay of interests and priorities for both nations.
The emergence of the Indo-Pacific region as an area of global strategic importance is expected to necessitate further collaborative efforts between India and Malaysia. However, the political distrust deters positive strategic cooperation. Hence, addressing each other’s sensitivity and concerns could present robustness in their bilateral engagement in Indo-Pacific. Regular and constructive political engagement is foremost essential for both the countries to sustain the momentum in the Indo-Pacific. The nuanced and astute diplomacy is required to navigate the intricacies of bilateral relationship, striving for a balance between cooperation and competition, while addressing areas of divergence.
Both countries must navigate the intricacies of the contemporary world order, presenting them with a host of opportunities and challenges that require a balanced and pragmatic approach in Indo-Pacific. Embracing such a stance can establish a firm groundwork for strengthening the enduring bond between India and Malaysia, paving the way for shared growth and stability in the Indo-Pacific region.
Dr. Mayilvaganan M is Director of CHSIA and Ms. Nurul Aishah Ab Raman is a Lecturer at the Department of Communication, Faculty of Communication and Media Studies, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia.
Views expressed are of the authors and do not necessarily reflect the views of the CHSIA.