Posted on 27 Oct 2025
Malaysia and South Korea have concluded negotiations for a bilateral free trade agreement, according to the Ministry of Investment, Trade and Industry (Miti).
The upcoming Malaysia-Republic of Korea Free Trade Agreement (MKFTA) covers goods, services, investments, customs facilitation as well as sanitary and phytosanitary, digital trade, the green economy, bioeconomy and economic cooperation, the ministry said in a statement on Monday.
“We see numerous opportunities to forge closer collaboration with Korea in the fields of industrial development, trade, and investment,” said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
The MKFTA is set to be Malaysia’s 19th free trade agreement to date as the country moves to diversify its export markets amid global economic uncertainties. Last year, South Korea was Malaysia’s eighth-largest trading partner with a total trade amount of RM109.68 million.
Malaysia mainly exports to South Korea electrical and electronics products, liquefied natural gas, and petroleum products. Meanwhile, South Korea ships to Malaysia petroleum products, electrical and electronics products, chemicals, machinery, equipment and parts, and iron and steel products.
The agreement with South Korea “guarantees long-term duty-free access” to various products covering the food and agricultural sectors, herbal products and extracts, commodities including palm and cocoa, chemical and petrochemical products, and tropical timber and plywood, Miti said.
The deal agreed with South Korea also has a built-in agenda for economic cooperation and capacity building programmes to further strengthen the development of sectoral capabilities as well as human capital development, Miti said.
Both countries also concluded a memorandum of understanding on strategic cooperation on supply chains.
“Korea has demonstrated competitive advantage in many different segments and is a global powerhouse in digital innovation,” the ministry said. “Malaysia is keen to learn from the policies and best practices on this front, and hopes some areas of cooperation will be established in the future.”
Source:The Edge
