FTA at final stage, says envoy, calling on Korean firms to tap halal market and diversify across ASEAN

Malaysia is committed to fulfilling the economic and strategic pledges of Korean companies made during the visit of Prime Minister Datuk Seri Anwar Ibrahim to South Korea last year, said Malaysian Ambassador to Korea Dato Mohd Zamruni Khalid in a recent interview with The Korea Herald.

Ibrahim stressed the need for the two countries to uphold their commitment to continued cooperation following the start of the Lee Jae Myung administration in June.

“We’re looking forward to working closely with the Lee Jae Myung administration," Khalid told The Korea Herald, describing the strategic partnership as more than transactional.

He noted that Malaysia was one of the first countries President Lee engaged with, pledging with his counterpart to deepen ties. The nearly finalized Malaysia–Korea FTA is expected to be signed by year’s end, boosting trade and regional connectivity. Lee spoke by phone with Malaysian Prime Minister Anwar Ibrahim on June 23, making Ibrahim the seventh leader to speak with the new South Korean president.

Malaysia and South Korea upgraded their ties to a strategic partnership in 2024 to deepen cooperation in ESG-based investment, digital and green tech, and the halal ecosystem.

Both sides aim to conclude an FTA by 2025 to benefit businesses and SMEs and boost the digital economy, bioeconomy and supply chain resilience.

Bringing up the combined $7.6 billion in investment pledges by Korean companies, according to Malaysia’s Ministry of Investment, Trade and Industry, Khalid stressed that realizing the pledges depends heavily on South Korea's political stability under the Lee administration, implying that without it, major bilateral agreements risk stalling.

Hyundai Motor plans to invest nearly $480 million from 2025 to upgrade its Malaysia plant with partner Inokom, boosting production of MPVs, minivans and SUVs. Starting at 20,000 units annually, the Korean auto giant aims to serve Malaysia and Southeast Asia to support the growth of the local electric vehicle ecosystem.

“After the visit, I have been working very hard to ensure that these pledges are realized by the companies,” he said, referring to expectations that political stability under the new Lee administration will lead to the fulfillment of pledges and bilateral agreements.

With over 400 Korean companies operating in Malaysia across various sectors, Khalid said, “We definitely encourage Korean companies to diversify investment destinations.”

He considers Malaysia a halal hub for South Korean exports globally, not just to countries with large Muslim populations.

“Many Korean companies are still unaware of this potential,“ he pointed out, highlighting Malaysia’s strength in the financial sector and the potential for joint ventures.

Khalid said he hopes for the adoption of the Comprehensive Plan of Action for the ASEAN–South Korea Comprehensive Strategic Partnership agreed at the ASEAN Ministerial Meeting, calling it “another key milestone.”

“We believe development should be both inclusive and sustainable,” he said, citing Malaysia’s 2025 ASEAN chairmanship and its theme of “Inclusivity and Sustainability."

“We want ASEAN to be an environmentally safe zone, and we’re keen to work with South Korea on this,” he said, referencing the ASEAN Community Vision 2045 and encouraging Korean companies to play active roles in maritime security, climate resilience, digital connectivity and green technology.

The envoy also cited cultural exchange and ASEAN links as a growing priority.

“I want Malaysians’ culture, food and values to be more familiar to Korean society,” Khalid said, noting tourism potential in regions such as Sabah, Sarawak, Malacca, Kuala Lumpur and his home state of Terengganu.