During UN General assembly (17 to 24 Sep 2019), Mahathir made remarks on India’s bad handling of Jammu and Kashmir. Unfortunately, some bold words were used, e.g. invade, occupied. This is on top of Malaysia’s hosting of controversial preacher Zakir Naik.

The repurcussion was heard within 3 months, when India made changes to India-Malaysia trade dealings.

• India restricted refined palm oil, which was mainly supplied by Malaysia
• India did not restrict crude palm oil which was mainly supplied by Indonesia
• Malaysia”s export to India in 2019 was USD 11 billion, whereas India imports is USD 6.4 mil.
• India is preparing to restrict import of other products from Malaysia through licensing or by other means
• Malaysia’s trade surplus from Jan to Nov 2019 was RM 124.74 mil (USD 30.68 mil).

Reference

1. After palm oil, India may impose import curbs on other crucial items from Malaysia (https://m.businesstoday.in/story/india-malaysia-trade-palm-oil-modi-govt-impose-curbs/1/394449.html, 23 Jan 2020)
2. India’s palm oil restriction not ‘totally detrimental’ to Malaysia (https://www.theedgemarkets.com/article/indias-palm-oil-restriction-not-totally-detrimental-malaysia, 10 Jan 2020)
3. Budget 2020: Lowering the threshold for foreigners will address property overhang, says PM (https://www.thestar.com.my/news/nation/2019/10/11/budget-2020-lowering-the-threshold-for-foreigners-will-address-property-overhang-says-pm, 11 Oct 2019)
4. Malaysia trade surplus (http://www.matrade.gov.my/en/malaysian-exporters/services-for-exporters/trade-market-information/trade-statistics/179-malaysian-exporters/trade-performance-2019)