Leveraging electronics and Information Technology industry can strengthen trade ties between India and Malaysia, according to C Sarat Chandran, Director of India-Asean-Sri Lanka Chamber of Commerce and Industry.

Addressing delegates of the Chamber, Chandran said that with Malaysia moving from resource-based economy to digital economy, it presents a huge potential for outsourcing back-office operations for India.

“Of the 150 Indian companies in Malaysia, 50 are IT-related,” Chandran said.

Malaysia’s thriving electronics industry and its proximity to India could foster partnership between the two countries. “Making Malaysia an outsourcing partner for electronics manufacturing could benefit both countries,” he said.

Trade ties

Ahmad Fajarazam Bin Abdul Jalil, Consul General of Malaysia for South India, said despite the economic slowdown, trade between the two countries increased to $46.8 billion in 2015, a 3.5 per cent increase over 2014.

India and Malaysia’s trade investments are increasing as well. Cumulative investments by Malaysian companies in India account for about $6 billion as against $3 billion in 2012.

They are in the areas of information and communication technology, mining, transportation and scientific and chemical research and development. India’s investment in Malaysia totals about $4.49 billion creating 14,919 jobs in paper and publishing industry, textiles, petroleum and electronics sector.

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