JEJU: Malaysia and South Korea are expected to attract more mutual investment through their upcoming free trade agreement (FTA), particularly in high-trade sectors such as electrical and electronics, semiconductors, and automotive.
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said both economies would gain deeper access to each other’s markets if the FTA is successfully established.
“These are the sectors where Malaysian companies are actively involved in the investment ecosystem.
“It (the FTA) will open up more markets and industries, providing greater access to investment opportunities,“ he told Bernama.
Tengku Zafrul highlighted that while Malaysia is a member of the Regional Comprehensive Economic Partnership (RCEP), which includes South Korea, the bilateral FTA being discussed offers more tailored opportunities between the two countries.
He added that while RCEP is a broad multilateral trade agreement, the proposed Malaysia-South Korea FTA would enhance it by providing more focused commitments in specific sectors not fully addressed under the regional trade pact.
Meanwhile, elaborating on the unresolved issues that have delayed the agreement since 2019, the ministers attributed the setbacks to concerns over the local industry’s readiness to liberalise, as well as certain sectors being viewed as too vulnerable or not yet prepared for opening.
“We cannot disclose the details of the unresolved issues due to a non-disclosure agreement.
“However, I can confirm that we want to ensure our industry is fully prepared to compete with other industries,“ he added.
On Thursday, Tengku Zafrul said the FTA negotiations between Malaysia and South Korea, which have been progressing smoothly, have entered the final phase and have been scheduled to be finalised during the upcoming ASEAN Summit in October in Kuala Lumpur.
