Malaysia Backs USD 100 Million Facility as Anwar Concludes Maldives Visit

Malaysian Prime Minister Anwar Ibrahim concluded a two-day State Visit to the Maldives on Tuesday, with the two countries announcing a proposed USD 100 million financial facility, plans for preferential trade negotiations and discussions on possible cooperation with Malaysian energy company PETRONAS.

The visit, held from 14 to 15 September, was Anwar’s first to the Maldives since becoming Prime Minister in November 2022. It followed President Dr Mohamed Muizzu’s official visit to Malaysia in April 2025.

President Muizzu and Anwar held a private meeting at the President’s Office before leading official talks between the two delegations. The discussions covered trade and investment, defence, Islamic affairs, healthcare, tourism, education, natural resources and challenges faced by Maldivians living in Malaysia.

USD 100 Million Facility Agreed in Principle

One of the most significant announcements was Malaysia’s agreement in principle to support a USD 100 million facility requested by the Maldives.

The President’s Office described the arrangement as a currency swap facility to be implemented through Bank Negara Malaysia and the Maldives Monetary Authority. However, Anwar subsequently told Malaysian journalists that the Maldives had requested a form of concessional loan to be channelled through the two monetary authorities.

The precise structure of the arrangement has therefore not yet been settled. Anwar said the detailed terms and mechanism were still being examined by the two authorities, including applicable government guarantees. The announcement represents an agreement in principle rather than a completed financing agreement or an immediate disbursement of funds.

Anwar said he had also contacted the Governor of Bank Negara Malaysia and requested that work on the facility be accelerated.

PETRONAS Proposal Remains at Discussion Stage

Possible cooperation with PETRONAS was also raised during the visit, although no exploration agreement was signed.

The President’s Office said President Muizzu welcomed collaboration with the Malaysian state-owned energy company on the potential exploration of minerals and natural resources in the Maldives.

Anwar referred more specifically to a Maldivian proposal for PETRONAS to examine the possibility of oil exploration. He said he would have to discuss the proposal with the company.

The matter therefore remains at a preliminary stage. PETRONAS has not announced an exploration programme, and neither government disclosed details of potential locations, surveys, investment commitments or a timetable.

Preferential Trade Negotiations Planned

The two governments also agreed to begin negotiations towards a Preferential Trade Agreement, which could provide reduced tariffs or other preferential terms for selected goods traded between the countries.

Malaysian Investment, Trade and Industry Minister Johari Abdul Ghani and his Maldivian counterpart are expected to examine which products and sectors could be included.

Anwar said Malaysia was the Maldives’ second-largest trading partner within ASEAN, with Malaysian exports to the Maldives exceeding USD 184.1 million, while imports from the Maldives stood at approximately USD 1.3 million. The figures indicate that bilateral merchandise trade remains heavily weighted towards Malaysian exports.

Beyond the proposed trade agreement, the Maldives invited Malaysian investment in renewable energy, digital infrastructure, construction and Islamic finance. Both sides also discussed expanding cooperation in tourism, the halal industry, technology, artificial intelligence, cybersecurity and the blue economy.

Defence and Islamic Affairs Agreements Exchanged

Two formal Memoranda of Understanding were exchanged during the visit, covering defence cooperation and Islamic affairs.

Defence Minister Hassan Rasheed exchanged the defence agreement with Johari, while Islamic Affairs Minister Dr Mohamed Shaheem Ali Saeed exchanged the Islamic affairs agreement on behalf of the Maldives.

According to the Malaysian account of the visit, the defence agreement is expected to support cooperation in maritime security, military and naval training and the defence industry. Anwar also said the Maldives could consider Malaysian-manufactured small vessels as part of future maritime cooperation.

The Islamic affairs agreement covers areas including Islamic education, religious administration, the halal sector, waqf, Hajj, training and human development.

The full texts of the two agreements have not been publicly released, meaning their implementation arrangements, financial commitments and timelines remain unclear.

Changes for Maldivian Students and Families

Malaysia also agreed to include the Maldives in its Graduate Pass Scheme, giving eligible Maldivian graduates greater opportunities to remain in Malaysia following the completion of their studies.

The two sides discussed expanding scholarships and resolving visa and administrative difficulties affecting Maldivian students and their families. Anwar said more than 2,000 Maldivian students were studying in Malaysia.

Particular attention was given to difficulties faced by parents seeking to accompany children studying or receiving treatment in Malaysia, including children with disabilities or special needs. Anwar said the Malaysian government would review the relevant administrative issues.

Healthcare access for a small number of Maldivian patients was also discussed, alongside broader cooperation in health and human development.

Joint Commission Proposed Before Year-End

To follow up on the agreements and outstanding issues, Anwar proposed convening the first Malaysia-Maldives Joint Commission meeting in Kuala Lumpur before the end of 2026.

The commission is expected to bring together the two foreign ministries and other relevant agencies to review bilateral cooperation, address unresolved matters and advance proposed initiatives. These are likely to include the financial facility, trade negotiations, education, healthcare and investment cooperation.

Malaysia also agreed to consider allocating land in Putrajaya for the Chancery of the Maldivian High Commission on a reciprocal basis.

The leaders additionally discussed climate finance and coordination ahead of COP31, as well as cooperation through the United Nations, the Organisation of Islamic Cooperation and the Commonwealth. Both governments reaffirmed their shared position in support of Palestine.

Anwar’s visit concluded after a State Luncheon hosted by President Muizzu and First Lady Sajidha Mohamed. He also received separate courtesy calls from Vice President Hussain Mohamed Latheef, People’s Majlis Speaker Abdul Raheem Abdulla and Foreign Minister Iruthisham Adam.