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Anwar Ibrahim's Maldives visit yields defence pact and trade prospects

Prime Minister Anwar Ibrahim signed defence and Islamic affairs agreements with Maldives President Mohamed Muizzu, opening new trade and investment avenues.

Prime Minister Datuk Seri Anwar Ibrahim’s first official trip to the Maldives since taking office resulted in two memoranda of understanding with President Dr Mohamed Muizzu - one on defence cooperation, the other on Islamic affairs - addressing maritime security, defence industry training, halal education and religious administration. Both sides pledged to explore a Preferential Trade Agreement, with Malaysia’s Investment, Trade and Industry Minister and his Maldivian counterpart identifying priority products.

Malaysia also agreed in principle to support a US$100 million financing facility for the Maldives, to be structured as a soft loan by their central banks. To ensure implementation, a Malaysia-Maldives Joint Commission is slated for Kuala Lumpur before the end of the year. The visit, which also featured courtesy calls with senior Maldivian officials, underscored shared positions on regional issues such as Palestine and highlighted the role of small states in global affairs.

Why it matters

The agreements could boost security cooperation and trade between Malaysia and the Maldives, impacting regional economics and diplomacy.

In this story

defence cooperationIslamic affairspreferential trade agreementsoft loanhuman capital developmentmaritime securityhalal sector
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