On April 25, 2025, Maldives and Malaysia agreed to deepen their defense and economic cooperation. The leaders of both countries announced that Kuala Lumpur has in principle agreed to Maldives' request for the establishment of a $100 million financial facility.
Investment Opportunities in Maldives
Mohamed Muizzu, the President of Maldives, invited the Malaysian government and companies to explore investment opportunities in Maldives. He emphasized that areas such as renewable energy, digital infrastructure, construction, and Islamic finance are among the sectors where further cooperation can take place.
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Support for Financial Facility and Cooperation in Mineral Exploration
Anwar Ibrahim, the Prime Minister of Malaysia, announced during this meeting that Malaysia has in principle agreed to establish the $100 million financial facility requested by the Central Bank of Maldives. He added that the two central banks are collaborating to determine the mechanism and process for settling this agreement so that it can be completed as soon as possible.
Anwar also emphasized the importance of mineral exploration as a significant area for the development of economic cooperation between the two countries.
Support for Palestine and Climate Change
Regarding the situation in Gaza, Muizzu emphasized that Maldives and Malaysia have declared their strong and unconditional support for the Palestinian people and their right to self-determination. He reiterated his support for the establishment of an independent Palestinian state with sovereignty based on the pre-1967 borders and with its capital in East Jerusalem.
Muizzu also called for adequate and predictable financing for climate change adaptation for small developing countries ahead of the COP31 conference in Turkey in November. He considered climate change an urgent reality for Maldives.
Malaysia and Maldives have established diplomatic relations since 1968, and their bilateral trade volume is estimated to be around $188 million in 2025. Anwar's recent visit to Maldives followed Muizzu's official visit to Malaysia from April 27 to 30, 2025, during which the two countries agreed to develop cooperation in several sectors.
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