SINGAPORE: Malaysia has completed negotiations for a free trade agreement with South Korea, with the signing expected in October.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz announced the development during a fireside chat at Bursa Malaysia’s Invest Malaysia event.
He stated that the agreement underscores Malaysia’s commitment to expanding market access amid geopolitical challenges.
“To date, we have concluded 18 FTAs, both bilateral and multilateral. We’ve signed two this year and resumed talks with the European Union,” he said.
The session was moderated by Bursa Malaysia CEO Datuk Fad’l Mohamed as part of the Macquarie ASEAN Conference.
When asked about Malaysia’s engagement with BRICS amid US pressure, Tengku Zafrul stressed the importance of a balanced foreign policy.
“We are partners today. There are many other countries who are already members, and what’s important is that all these countries are also members of other economic blocs,” he said.
He reiterated Malaysia’s neutral stance in global trade dynamics.
“Malaysia can’t afford to (take sides). I think ASEAN is also playing that card well where we engage all parties,” he added.
In his keynote address, Tengku Zafrul noted that ASEAN’s economic opportunities remain strong despite global uncertainties.
He highlighted the region’s resilience, driven by trade openness and structural reforms.
The minister also addressed challenges, including proposed US tariffs on semiconductor imports.
Malaysia exported RM119.86 billion worth of electrical and electronics goods to the US in 2024, with semiconductors making up half of that value.
“All these risks and numbers reflect why we are actively engaging with Washington to ensure sectoral carve-outs are clear and fair,” he said.
To mitigate transshipment risks, Malaysia is enhancing supply chain verification and local value addition.
“In parallel, we are also putting together a detailed supply chain mapping, diversifying markets, strengthening enforcement, and boosting local value-add in production,” he added. - Bernama
