In a big move set to bring India and Malaysia closer, Prime Minister Narendra Modi has announced the opening of an Indian consulate will in the South Asian country. Along with this, PM Modi also made several other major announcements that strengthen India’s strategic, economic and people-to-people engagement in Malaysia.
Coming against the backdrop of steadily expanding bilateral cooperation after both sides elevated ties to a comprehensive strategic partnership in August 2024, PM Modi arrived in Kuala Lumpur on Saturday (February 7, 2026), marking his first foreign visit of the year. His visit came on the invitation of the Malaysian PM Anwar Ibrahim.
Addressing a massive Indian community reception – ‘Selamat Datang Modiji’ – in Kuala Lumpur, PM Modi unveiled initiatives that deepen bilateral ties and directly benefit India’s diaspora outreach, digital economy and cultural diplomacy. The event, attended by the Malaysian PM, also featured a record-setting cultural performance by 800 artistes.
Indian consulate in Malaysia: What does the announcement mean?
One of the most consequential announcements was PM Modi’s declaration that India will soon open a new Consulate in Malaysia. The move is expected to significantly enhance India’s diplomatic presence, improve consular services, and expand engagement with the Indian-origin community, one of the largest in the world.
According to the Ministry of External Affairs (MEA), the new Consulate will strengthen ongoing cooperation across trade, education and mobility, while also enabling faster assistance to Indian nationals and businesses operating in Malaysia.
OCI expansion: How would it benefit the Indian diaspora?
In addition to the new Consulate, PM Modi underscored the Indian government’s decision to extend Overseas Citizen of India (OCI) card eligibility to Malaysian citizens of Indian origin up to the sixth generation. The move has been widely welcomed by the diaspora and is expected to deepen long-term bonds with India.
For New Delhi, the expansion reinforces its soft power and strengthens its connection with a globally influential diaspora that continues to play a key role in trade, technology and cultural exchange.
UPI in Malaysia: Can it transform digital diplomacy?
In a major boost to India’s fintech diplomacy, PM Modi also announced that UPI-based digital payment services will soon be available in Malaysia. This step is expected to facilitate seamless cross-border transactions, boost tourism, and further position India as a global leader in digital public infrastructure.
PM Modi noted that India today accounts for nearly 50% of all global real-time digital payments, an achievement that enhances India’s credibility as a technology-driven economy and opens doors for exporting digital solutions worldwide.
‘IMPACT’ vision’s role in India-Malaysia ties
Describing the bilateral relationship as IMPACT – India Malaysia Partnership for Advancing Collective Transformation – PM Modi outlined how complementary strengths in infrastructure, green energy, digital technologies and economic growth can benefit both nations.
He also invited the diaspora to contribute to India’s vision of Viksit Bharat and Malaysia’s Madani framework, linking national development goals through shared prosperity.
Meanwhile, the Prime Minister also announced the establishment of a dedicated Thiruvalluvar Centre at Universiti Malaya in Kuala Lumpur, building upon the Thiruvalluvar Chair of Indian Studies created in 2024. He also unveiled Thiruvalluvar scholarships to promote academic and cultural exchanges.
By highlighting shared traditions, from Tamil literature and saints like Thiruvalluvar and Swami Vivekananda to Garba, Sikh heritage and Thaipusam celebrations, India reaffirmed culture as a key pillar of its global engagement.
What does PM Modi’s Malaysia visit signal?
PM Modi used the platform to underscore India’s rapid economic rise, noting that the country has moved from the world’s 11th-largest economy to the fourth largest and is on track to become the third largest soon. He pointed to India’s progress in next-generation infrastructure, green development, solar energy and emerging technologies as areas ripe for collaboration with Malaysia.
With Malaysia hosting the world’s second-largest Indian-origin community, New Delhi sees the country as a critical partner in Southeast Asia and the broader Indo-Pacific. The announcements made during the visit reinforce India’s long-term strategy of combining diplomacy, diaspora engagement, digital leadership and cultural connectivity.