Modi - Anwar review strategic ties as Malaysia backs Indian consulate in Kota Kinabalu

NEW DELHI - Malaysia and Iran are exploring ways to deepen their economic ties in various sectors, including energy, agriculture, food security, palm oil, the halal economy, technology, and higher education. During a bilateral meeting, Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Iranian President Masoud Pezeshkian discussed expanding existing commercial relations and promoting greater involvement from companies and private investors.

The trade between the two nations amounted to RM2.45 billion in 2025, with Malaysian exports contributing RM2.17 billion, primarily consisting of palm oil. In return, Iran imported oil and gas products. Both leaders agreed on the importance of identifying high-potential sectors and projects that could be pursued through government entities, ministries, and the private sector to turn their talks into tangible investment and commercial prospects.

Energy emerged as a crucial area for closer cooperation, with both nations examining possibilities related to energy security, efficiency, and the shift towards more sustainable energy systems. Iran's substantial energy resources, combined with Malaysia's strengths across the wider energy sector, could lead to mutually advantageous collaboration, provided they adhere to international laws, regulations, and requirements.

In addition to energy, discussions focused on enhancing cooperation in agriculture and food security due to mounting worries about the resilience of global food supply chains. Malaysia, a leading palm oil producer, could further boost bilateral trade by facilitating greater access to its palm oil and palm-based products in Iran and possibly the broader region.

The two heads of state also examined ways to deepen cooperation in the halal economy, capitalizing on Malaysia's globally recognized halal system and expertise in areas such as standards, certification, food, pharmaceuticals, cosmetics, and related industries. Technology, digitalization, and innovation were also deemed potential zones for enhanced collaboration, including partnerships involving companies, research institutions, universities, and technology ecosystems in both countries.

They also explored expanding higher education and research cooperation, which could entail more academic exchanges, institutional partnerships, and joint research. The talks highlighted Malaysia's commitment to strengthening economic relations with Iran while broadening cooperation beyond conventional trade into sectors with more extensive commercial potential.