Malaysia is located in Southeast Asia. Its territory is separated by the South China Sea into two similarly sized regions – Peninsular Malaysia and East Malaysia (Malaysian Borneo). It is part of the most successful regional grouping – ASEAN.
The United Nations Development Programme ranks Malaysia 52nd in terms of Human Development Index with the value of 0.802, which is categorised as very high. It is ranked 15th in ‘Ease of Doing Business’ by World Bank as per list released in 2018, with rank 3 in dealing with construction permits, 4 in getting electricity and 2 in protecting minority investors. It is one of the few countries which have consistently maintained a very high economic growth rate.
As per World Economic Outlook Database 2018 estimates, Malaysia is ranked 26thin world in GDP in PPP terms at a value of US$ 1.00 trillion while ranked 38thin GDP in nominal terms at a value of US$ 364.92 billion. The per capita GDP of Malaysia in PPP terms is estimated to be US$ 30858 and in nominal terms it is estimated to be US$ 11237 in 2018 by World Economic Outlook Database.
TRADE STATISTICS
In 2017, Malaysia imported US $ 193.86 billion worth of goods. Its export was over US $ 216.43 billion in value in 2017.
The top trading partner of Malaysia is China, followed by Singapore and USA. India is ranked 10th in the list of top 10 trading partners of Malaysia; it has an import from Malaysia of worth US$ 5.53 billion and a significant export value of US$ 8.90 billion from India to Malaysia, resulting into a trade deficit of US$ 3.36 billion for India.
MALAYSIA’S MERCHANDISE TRADE WITH WORLD
Malaysia’s exports to the world and imports from the world have a similar pattern. Though there are few key observations: there are countries such as China and Taipei China from which the imports to Malaysia are very high while at the same time it maintains disproportionately high exports to Singapore, USA and Hong Kong China. 
The country has maintained a trade surplus over the decade 2008-2017. In 2008 it had the highest trade surplus in the decade valued at of US $ 43.04 billion.
MALAYSIA’S EXPORT TO THE WORLD
Malaysia’s total export in 2017 amounted to US $ 216.43 billion. Electronic products and palm oil are the primary export products of Malaysia. Its top export product at HS-6 digit level last year was Electronic Integrated Circuits as processors and controllers, medium oils and preparations, liquefied natural gas, palm oil and its fractions and electronic integrated circuits excluding processors and controllers.
MALAYSIA’S IMPORTS FROM THE WORLD
Malaysia’s import basket is primarily led by Electronic Integrated Circuits as processors and controllers, medium oils and preparations, parts of EICs n.e.s., light oils and preparations and Electronic Integrated Circuits excluding processors and controllers which together make up the Top 5 imports of Malaysia. Malaysia’s total import in 2017 amounted to US $ 193.86 billion.
INDIA-MALAYSIA MERCHANDISE TRADE
India consistently maintained a trade deficit with Malaysia since 2010. Deficit reached the highest in 2012 with a value of US$ 6.70 billion. Trade balance between India and Malaysia saw a decline in favour of India from 2014.
There is no trend between India and Malaysia in terms of trade balance except that it has remained in favour of Malaysia in the last decade.
INDIA’S EXPORT TO MALAYSIA
India’s total exports to Malaysia amounted to US $5.53 billion in 2017. Its top five exports at HS-6 digit level were medium oils and preparations, frozen, boneless bovine meat, unalloyed- unwrought aluminium, copper cathodes and light oils and preparations.
INDIA’S IMPORT FROM MALAYSIA
India’s total import from Malaysia in 2017 was US $ 8.90 billion. India’s import was dominated by crude petroleum oils, crude palm oil, palm oil and its fractions, reception apparatus for television, radio, and wire of refined copper CSD <= 6 mm.
India is part of the two bilateral trade agreements with Malaysia namely the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) and the regional trade agreement ASEAN-India FTA (AIFTA). Malaysia has invested approximately $4.5 billion in India across various states and sectors owing primarily to the investment by Malaysian sovereign fund Khazana while Indian investment in Malaysia is worth approximately $1.5 billion in last 2-3 years. Indian companies such as Idea Telecom, Apollo Hospital Chain, Global Hospitals and Hyderabad airport have significant investment in Malaysia. From 2000–2013, Malaysia is the 19th largest investor in India with cumulative FDI inflows valued at US$618.37 million. Malaysia primarily invests in telecommunications, healthcare, banking and construction projects in India. In 2017 during Malaysian Ex-PM Najib Razak’s visit to India, India and Malaysia signed 31 business memorandum of understanding (MoUs) amounting to U$36 billion, the largest in the history of economic relations between the two countries.
India and Malaysia have also agreed to expand co-operation in areas like infrastructure development and building of smart cities. This move will give impetus to India’s target of reforming and revolutionising infrastructure.
