Malaysia, South Korea Conclude FTA to Boost Strategic and Economic Ties

Malaysia and the Republic of Korea (ROK) have officially concluded negotiations for the Malaysia-Korea Free Trade Agreement (MKFTA), marking a major milestone in strengthening bilateral relations. The Joint Statement was signed by Malaysia’s Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz and Korea’s Minister for Trade Yeo Han-koo on the sidelines of the 47th ASEAN Summit in Kuala Lumpur.

The comprehensive agreement covers trade in goods and services, investment, customs facilitation, digital trade, green economy, and economic cooperation. Upon implementation, it will grant Malaysia long-term duty-free access to strategic exports such as palm oil, cocoa, chemicals, and timber.

FTA

Both nations also signed an MoU on Strategic Cooperation on Supply Chains, aimed at reinforcing economic security and resilience. Zafrul said the MKFTA would open new opportunities for collaboration in emerging sectors including the green and digital economies, benefitting SMEs and professionals from both countries.

The ROK is Malaysia’s eighth-largest trading partner, with bilateral trade reaching USD24.01 billion in 2024. Since 1980, Korean investments worth RM61.9 billion have created over 83,000 jobs in Malaysia.

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