Malaysia and South Korea are poised to strengthen economic ties by leveraging each other’s strengths in manufacturing and technology. The Malaysian Investment Development Authority (Mida) highlights South Korea’s technological advantages in innovation, research and development, semiconductors, electronics, the digital economy, and information technology. Conversely, Malaysia, a manufacturing hub in South Asia, excels in sectors such as palm oil, oil and gas, and mineral resources.
Speaking at the Look East Policy Malaysia-Korea Business Summit, Masni Muhammad, Mida’s Executive Director for Investment Policy Advocacy (Manufacturing), emphasized the potential for collaboration, citing bio-renewable energy as one of the areas where mutual benefits could be achieved. Both nations share common themes in economic policies, focusing on the green economy, sustainability, and the digital economy.
Masni highlighted the need to fully utilize and enhance the existing free trade agreement between the two countries. Strengthening the regulatory framework through bilateral trade is seen as a crucial step to boost investment and economic cooperation. South Korea has consistently been among the top contributors to investments in Malaysia.
To further enhance collaboration, Malaysia is committed to talent development, with over 500 Malaysian students currently studying in South Korea. This initiative aims to ensure a skilled workforce to meet the needs of South Korean investors in Malaysia.
Mastura Ahmad Mustafa, Deputy Secretary-General for International Trade at the Ministry of Investment, Trade and Industry, encouraged South Korean companies to explore opportunities outlined in Malaysia’s New Industrial Master Plan 2030. This plan focuses on revitalizing the manufacturing sector through a mission-based approach to industrial development.
As of June 2023, South Korea stands as one of the main sources of foreign direct investment (FDI) in Malaysia, with 386 implemented projects amounting to US$9.30 billion (RM33.20 billion) and creating 46,580 job opportunities. The collaborative efforts aim to propel both nations into a mutually beneficial era of economic growth and technological innovation.
