Indian PM wants Malaysian help in “affordable housing”
November 12, 2014, 8:01 am

Modi held talks with his Malaysian counterpart Najib Razak on 12 November 2014 [MEA, India/Twitter]

Modi held talks with his Malaysian counterpart Najib Razak at the Myanmar International Convention Centre on the sidelines of the 12th ASEAN—India summit on the second day of his ten—day three—nation tour of Myanmar, Australia and Fiji.

“I am giving lot of emphasis to “make in India” & want to invite Malaysian companies to come to India. There are lot of opportunities,” Modi tweeted after his meeting.

In September, Modi launched a high-decibel drive to make India an export powerhouse.

India has traditionally relied on investments from Japan, South Korea, Europe and the US.

Noting that Malaysia has worked a lot on affordable housing, Modi said its companies can work in this area since the Indian government is aiming for every Indian to have a home by 2022.

India needs about 19 million low-cost homes to cost roughly around a million rupees ($16,700) and below – to shelter an urban population expected to nearly double to 600 million by 2030 from 2011, says a report by consultants Deloitte.

The Central Bank of India said in August it is tweaking its policies recognising the need for affordable housing. As part of the recent policy measures, the central bank has allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.

India-Malaysia trade stood at $12.3 billion in the January to November 2013 period, compared to Malaysia—China trade of $95 billion during the same period. The Chinese Central Bank said on Monday that China and Malaysia had signed a deal to set up a yuan clearing bank based in Kuala Lumpur, the first of its kind for the country.

US and China are both jostling for influence in Malaysia, key to the much-hyped Asia Pivot policy of the US. Chinese President Xi Jinping is courting Malaysia and Indonesia which Beijing fears could tip too far into Washington’s orbit.

Malaysia was an intimate friend and a trustworthy partner, Xi told Malaysian Prime Minister Datuk Seri Najib Tun Razak on the sidelines of the APEC Summit on Monday.

“Malaysia is our good friend and partner among the Asean countries, and you and I have developed a personal friendship,” he said.

TBP and Agencies