MALAYSIA and South Korea are poised to attract increased joint investment through a forthcoming bilateral free trade agreement (FTA), particularly in key sectors such as electrical and electronics, semiconductors, and automotive manufacturing.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the FTA, once concluded, would provide deeper market access and unlock new investment opportunities for both countries.
“These are sectors where Malaysian companies are already active participants in the investment ecosystem,” he told Bernama.
“This FTA will open up more markets and industries, granting wider access to investment prospects.”
While both nations are already members of the Regional Comprehensive Economic Partnership (RCEP), Tengku Zafrul noted that a bilateral agreement would offer more targeted opportunities and commitments that are not fully addressed under the multilateral framework.
“Given the broad scope of RCEP as a multilateral trade deal, the proposed Malaysia–South Korea FTA will strengthen cooperation further by focusing on specific sectors not comprehensively covered under RCEP,” he said.
Addressing delays in concluding the agreement—which has been under negotiation since 2019—Tengku Zafrul attributed the holdup to concerns over the readiness of certain local industries for liberalisation.
“We cannot disclose the details of the outstanding issues due to confidentiality agreements,” he said.
“However, what I can share is that we want to ensure our industries are fully prepared to compete with others.”
On Thursday, the minister confirmed that negotiations have now entered the final phase, with a target for conclusion aligned with the ASEAN Summit scheduled to take place in Kuala Lumpur this October. - May 16, 2025
