India’s Unified Payments Interface (UPI) system is set to enter the Malaysian market, as the two countries continue to strengthen their longstanding economic ties, said Indian Prime Minister Narendra Modi.
“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,”
The intention for UPI to enter Malaysia was first expressed in August 2024.
Modi said while addressing the Indian diaspora at a reception in Kuala Lumpur on February 7, according to The Star.
He noted that nearly half of the world’s real-time digital transactions occur in India using the UPI platform. Modi added that Indian companies have consistently shown interest in working with Malaysia.
“It is a privilege that we played a part in creating Malaysia’s first and Asia’s largest insulin manufacturing facility. Over 100 Indian IT companies operate in Malaysia, generating thousands of jobs,”
he said.
India-based Biocon Biologics, a major insulin supplier to Malaysia, operates a RM1.63 billion integrated insulin manufacturing facility in Johor, the largest in Asia.
Modi also announced scholarships for students wishing to study in India.
“We are going to give Thiruvalluvar scholarships for students to study in India. We look forward to seeing you in the ‘Know India’ programme,”
he said.
He added that India will soon open a new consulate in Malaysia. Modi also highlighted a recent decision to extend the Overseas Citizenship of India card eligibility to Malaysian citizens of Indian origin up to the sixth generation.
“We have been supporting the Indian Scholarship Trust Fund,”
he said.
Malaysian Prime Minister Datuk Seri Anwar Ibrahim said the two countries are deepening cooperation in sectors that will define the century.
“The Malaysia-India Digital Council reflects this shared ambition. The linkage between India’s unified payment system, UPI, and Malaysia’s PayNet system will make cross-border payment simpler for businesses, students and clients,”
Anwar said.
He added that semiconductors, advanced manufacturing, digital finance, artificial intelligence, and cyber security are natural complements to Malaysia’s established electronics ecosystem.
India’s expanding market and design capabilities further strengthen this synergy.
As global supply chains reconfigure, Anwar said the region has the potential to become a more resilient and trusted hub for high-tech manufacturing.
Modi’s last official visit to Malaysia was in November 2015, though he made a brief stopover on May 31, 2018. During this visit, he was accompanied by India’s External Affairs Minister Dr S. Jaishankar and senior government officials.
Wisma Putra said the two leaders will review Malaysia-India bilateral relations. They will also explore further collaboration in trade and investment, defence and security, labour, tourism, connectivity, agriculture, and education.
They are set to discuss regional and international issues of mutual interest. The leaders will also witness the exchange of several memoranda of understanding in various fields.
In 2025, total trade between Malaysia and India reached RM79.49 billion.
Malaysia’s exports to India totalled RM52.30 billion, while imports amounted to RM27.19 billion.
Featured image credit: Edited by Fintech News Malaysia, based on image by user5742774 via Freepik
