Malaysia and South Korea Strengthen Ties, Aim for Comprehensive Partnership

Malaysia and South Korea have deepened their bilateral relationship with a series of agreements aimed at boosting economic cooperation, defense partnerships, and technological advancements.

Both countries have pledged in May 2023 to expedite negotiations and finalize a Free Trade Agreement (FTA) by 2025. The FTA is expected to cover a wide range of sectors, including services, investment, and green energy.

The countries have agreed to cooperate on Malaysia’s defence. South Korea will supply Malaysia with 18 FA-50 fighter jets, which will in turn bolster its position in the defence industry in Southeast Asia.

“We (Anwar and Yoon) discussed this (yesterday) morning that we will simplify and speed up the negotiation process related to the FTA. When he (President Yoon) comes to Malaysia next year, we will sign and finalise the FTA,” he said at the Malaysia-Korea Business Forum 2024 in Seoul.

Malaysia and South Korea have also agreed to collaborate on the supply of critical minerals from the rich Malaysian reserves.

Both countries will work together on carbon capture and storage technologies, greenhouse gas reduction projects, and green hydrogen initiatives.

Prime Minister Anwar Ibrahim expressed optimism about the future of Malaysia-South Korea relations, highlighting the potential for significant growth in various sectors. He emphasized the importance of simplifying the FTA negotiation process and creating a conducive business environment in Malaysia.

President Yoon Suk Yeol echoed these sentiments, emphasizing the need to expand cooperation beyond traditional areas like trade and investment. He highlighted the potential for collaboration in emerging fields such as defence, green hydrogen, and critical minerals. “I hope the bilateral cooperation would expand beyond trade, investment, and people-to-people exchanges to include defence, the arms industry, and emerging fields, such as green hydrogen and key minerals,” President Yoon said in his opening remarks.

Both leaders reiterated their commitment to promoting sustainable development and innovation. They underscored the importance of aligning investment and business practices with Environmental, Social, and Governance (ESG) principles.

The two countries have identified several key areas for cooperation. Firstly, they aim to harness advancements in Fourth Industrial Revolution technologies, such as artificial intelligence and robotics, that will drive innovation. Additionally, they seek to promote the digital economy through initiatives focused on digital transformation and e-commerce. Collaboration in the halal industry is also a priority, particularly in the sectors of halal food and lifestyle – especially for Malaysia. Finally, both countries are committed to working together on green economy initiatives, focusing on sustainable practices and clean energy solutions to foster long-term environmental and economic growth.

By strengthening their bilateral ties, Malaysia and South Korea aim to create a more prosperous and sustainable future for both the nations.