Malaysia: Malaysia is looking forward to the conclusion of the Malaysia-Korea Free Trade Agreement (MKFTA), which is seen as a platform to deepen trade linkages between the two countries. Malaysia External Trade Development Corporation (MATRADE) chief executive officer (CEO) Abu Bakar Yusuf said Malaysia is currently in the process of finalising the agreement, which is expected to be concluded by this year or next year.
According to BERNAMA News Agency, Malaysia has continued to record strong trade performance with South Korea, registering double-digit growth in both total trade and exports last year. The MKFTA platform is anticipated to drive the growth of trade volume between the two countries even further. MATRADE views this platform as a tool to enhance market access into Korea in various sectors, including medical and health, electric and electrical (EandE), as well as fast-moving consumer goods.
Abu Bakar Yusuf shared these insights on the sidelines of the ASEAN-Korea Trade Facilitation Mission to Malaysia, organised by the ASEAN-Korea Centre, an intergovernmental organisation focused on promoting economic and socio-cultural cooperation between the Republic of Korea (ROK) and the 10 ASEAN member states. In his opening remarks, he highlighted that last year, total bilateral trade between Malaysia and South Korea rose by 14.2 per cent to US$27.42 billion (RM128.8 billion).
He noted that Malaysia's exports to Korea remained stable at US$12.31 billion (RM57.86 billion), while imports from Korea increased to US$15.11 billion (RM71.02 billion). Malaysia's export strengths continue to be anchored by EandE products, particularly integrated circuits and semiconductor devices, which play a critical role in global supply chains. Liquefied natural gas also remains a key pillar, reinforcing Malaysia's position as a reliable energy partner to Korea.
Abu Bakar highlighted that over the past decade, bilateral trade between the two countries experienced an estimated compound annual growth rate of about 7.8 per cent, with consistent year-on-year expansion despite global economic uncertainties. The most notable surge was observed in 2022 when bilateral trade grew by 29.2 per cent year-on-year, driven by the rebound in global demand and improved supply chain activity. This sustained upward trajectory underscores the resilience of Malaysia's economic ties, alongside increasing diversification across key sectors such as EandE, chemicals, machinery, and high-value manufacturing.