The Republic of Korea and the Federal Republic of Malaysia are very special countries to each other.
From the signing of a groundbreaking free trade agreement to a history of infrastructure sharing and expanding people-to-people exchanges, relations between South Korea and Malaysia are entering a new phase of future-oriented cooperation.
Diplomacy Journal Kim Tae Yeon | President Lee Jae Myung held his first Summit Meeting with Prime Minister Anwar Ibrahim of Malaysia in Kuala Lumpur on October 27 last year. The Korean and Malaysian leaders welcomed the conclusion of the Korea-Malaysia Free Trade Agreement (FTA), and agreed to further strengthen bilateral cooperation, focusing on future strategic industries such as the defense industry, digital technologies, and AI. As part of his first ASEAN tour since taking office, President Lee visited Malaysia, the ASEAN Chair that year, and held a bilateral summit with Prime Minister Anwar Ibrahim. President Lee emphasized that the visit was "a meaningful occasion that will elevate our relationship with Malaysia, a long-standing friendly nation and strategic partner." Prime Minister Anwar welcomed the visit, saying, "I deeply appreciate President Lee's visit, despite his busy schedule preparing for the APEC Summit." Prime Minister Anwar stated, "This summit will serve as a significant opportunity for a qualitative leap forward in Korea-Malaysia relations as well as Korea-ASEAN cooperation." The two leaders particularly welcomed the recently concluded Korea-Malaysia Free Trade Agreement (FTA) and agreed to expand cooperation beyond trade and investment to include new industries such as digital transformation and artificial intelligence (AI). During the meeting, Prime Minister Anwar stated: "Korea is a trustworthy and important partner in strengthening Malaysia's defense capabilities. I look forward to further strengthening our cooperation with Korea through the signing of this MOU in the defense industry." President Lee also expressed his willingness to actively expand cooperation, citing the significant potential for cooperation between the two countries across future-oriented industries, including the defense industry, smart infrastructure and energy transition. The two leaders shared the same view on the Korean government's efforts to achieve peace and shared prosperity on the Korean Peninsula. President Lee requested support and cooperation from Malaysia and ASEAN. Prime Minister Anwar responded, "I fully support Korea's policy on the Korean Peninsula, and ASEAN and the international community will actively support peace-building efforts together." The two leaders also respected each other's experiences and national visions for democracy and socio-economic development, and agreed to continue developing bilateral relations based on mutual trust and friendship. President Lee and Prime Minister Anwar expressed their commitment to continue summit exchanges and deepen the Korea-Malaysia relationship in a future-oriented manner. The Korean Ministry of Foreign Affairs and other Korean diplomatic sources have a very favorable view of Malaysia and the bilateral win-win cooperation between the two countries. Cooperation and interaction between Korea and Malaysia are also very brisk. President Lee Jae-myung, visiting Malaysia at that time, announced on October 27th (local time) that he and Prime Minister Anwar Ibrahim of Malaysia have agreed to conclude the Korea-Malaysia Free Trade Agreement. The Office of the President in Seoul stated that President Lee achieved this outcome during his first summit with Prime Minister Anwar Ibrahim in Kuala Lumpur, Malaysia. The two leaders welcomed the conclusion of FTA negotiations between Korea and Malaysia through this summit and expressed expectations that, based on this, trade and investment between the two countries--as key economic partners in the region--will expand further, and cooperation in strategic industries such as digital and AI will accelerate. President Lee told Prime Minister Anwar, “It is very meaningful to visit Malaysia, this year’s ASEAN chair and a long-standing friendly nation, as my first ASEAN country visit.” Prime Minister Anwar expressed gratitude for President Lee’s visit to Malaysia amid preparations for the APEC summit. Prime Minister Anwar evaluated, “President Lee’s visit to Malaysia will provide significant momentum for elevating Korea-Malaysia relations and Korea-ASEAN relations to a new level.” He added, “Korea is a trusted and important partner in strengthening Malaysia’s defense capabilities,” and stated that he looks forward to strengthening cooperation in the defense sector with Korea, starting with the signing of this defense MOU. Meanwhile, President Lee requested Malaysia’s support and cooperation for the South Korean government’s efforts to open a new era of peaceful coexistence and shared growth on the Korean Peninsula. In response, Prime Minister Anwar said, “We support the South Korean government’s policy on the Korean Peninsula and will actively cooperate with the international community, including ASEAN, to ensure that the South Korean government’s efforts to build peace on the Korean Peninsula bear fruit.” Economic cooperation and exchanges between Korea and Malaysia are very brisk. According to a report by Business Day on Nov. 26, 2024, Malaysia-Korea Business Forum 2024 was held as a platform for enhancing bilateral cooperation, saw the participation of 147 Korean companies across diverse sectors. Among these, 60 companies were involved in manufacturing, 78 in services, retail, and distribution, and 9 business associations. The event spotlighted key strategic sectors, including green technology, ICT services, pharmaceuticals, construction and engineering, food and beverage products, as well as textiles. Together, both nations aim to foster economic collaboration and investment, positioning themselves for a sustainable future. Minister Tengku Zafrul Aziz of Investment, Trade, and Industry (MITI) of Malaysia underscored the continued strengthening of bilateral trade relations. Emphasizing the growth in exports of semiconductor products, electrical and electronics (E&E), liquefied natural gas (LNG), and halal-certified goods, he highlighted the significant potential of these industries. The forum also marked a focus on investment opportunities in industries such as aerospace, carbon capture, utilization and storage (CCUS), and Malaysia’s halal-certified products, which are gaining increasing attention in the global market. The growing strategic collaboration between the two countries aims to open new doors for sustainable investment and economic growth, ensuring both nations benefit from emerging global market opportunities. The Malaysia-Korea Business Forum 2024, held as a platform for enhancing bilateral cooperation, saw the participation of 147 Korean companies across diverse sectors. Among them, 60 companies were involved in manufacturing, 78 in services, retail, and distribution, and 9 business associations. The event spotlighted key strategic sectors, including green technology, ICT services, pharmaceuticals, construction and engineering, food and beverage products, as well as textiles. Together, both nations aim to foster economic collaboration and investment, positioning themselves for a sustainable future. Minister of Investment, Trade and Industry Tengku Zafrul Aziz of Malaysia underscored the continued strengthening of bilateral trade relations. Emphasizing the growth in exports of semiconductor products, electrical and electronics (E&E), liquefied natural gas (LNG), and halal-certified goods, he highlighted the significant potential of these industries. The forum also marked a focus on investment opportunities in industries such as aerospace, carbon capture, utilization and storage (CCUS), and Malaysia’s halal-certified products, which are gaining increasing attention in the global market. The growing strategic collaboration between Korea and Malaysia aims to open new doors for sustainable investment and economic growth, ensuring both nations benefit from emerging global market opportunities. Korea and Malaysia have a long-standing friendship. Although not known to many, shortly after Korea and Malaysia established their diplomatic relations in 1960, Malaysia contributed to the funding for building a bridge named ‘Malaysia Bridge’ in a village in Gyeonggi Province of Korea, near the border with North Korea. Then in the 1980s, a Korean construction and engineering company built the ‘Penang Bridge’ connecting the island of Penang with Peninsula Malaysia. Korean companies also took part in building Kuala Lumpur's iconic Petronas Twin Towers. Likewise, Korea and Malaysia are close friends who achieved economic and social development together over more than sixty years. Korea and Malaysia are mutually important and reliable partners. Malaysia is Korea's 13th largest trade partner and Korea is Malaysia's 8th largest trade partner, with total trade volume exceeding USD 20 billion in 2021, despite the COVID-19 pandemic. Since the early 1980s, the government of Malaysia has been pursuing cooperation with Korea with great importance under the Look East Policy (LEP). In 2023, Korea and Malaysia commemorated the LEP's 40th Anniversary and also planned together the next 40 years ahead. Korea and Malaysia are very familiar neighbors. Korean music or K-pop, K-dramas, and movies are much loved in Malaysia, along with a wide variety of Korean products ranging from food, fashion, cosmetics, and electronic devices. Malaysia is one of the favorite destinations for Koreans travelling overseas. The total number of visitors between Korea and Malaysia reached the one-million mark for the first time in 2019 and the countries are now seeing the number of people-to-people exchanges recovering as they are moving towards the endemic phase with the relaxed travel restrictions. There are many Korean business companies in Malasia, contributing to the promotion of win-win cooperation between the two countries. They include the following companies: YCP Engineering Services(M) Sdn. Bhd., Samsung C&T (KL), Ssangyong Engineering & Construction Co., Samsung Engineering, Daewoo Corporation, POSCO Plant Engineering, Hyosung Corporation, Taihan Electric Wire Co., Ltd., Samsung Heavy Industries, Hyundai Corporation, SK Networks Trading, SK Networks Magic, Astro GS Shop, Wonpoong, GS Global, Korea Petroleum. Geumhong Korea Ginseng, Coway(M)Sdn., LG Electronics, Chungho Nais, POSCO Daewoo, Pro Cahaya Global Sdn, Samsung C&T(M) Sdn., Daesan Global, Daekyo Malaysia Sdn., Hyundai Merchant Marine, Dongnama Shipping, Pantos Logistics, SGA Techcordia, YK Solid Global, Raytech Medical Malaysia, YH Precision(M)Sdn., Hyundai Mobis, Kia Motors, DMJ Eng & Const, OCIM Sdn, Samsung SDI, Samsung Electronics Display, Shin Heung Electronics, Samsung Electronics, Seoul Electronics & Telecommunications(M) Sdn., Samchang Precision (M), Hankook Tire, Nano Mechatronics Sdn., POSCO-MKPC Sdn., Kiswel Sdn., Sewang Precision, Youngreem Electronics, Kumkang Kind(M) Sdn., Jeil Electronics, Samsung Corning, Hyundai Elevator, Dongkuk Techco Rubber, Hyundai Motors, SK, Samhwa Paints (M), Poongsan (M) Sdn., Hanwha Q-Cells, Lotte Chemical, Kiswire, Daelim, Dongwha Malaysia, and Haxim Electronics.