Malaysia Eyeing Conclusion Of MKFTA
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, May 18 (Bernama) -- 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.
"Malaysia has continued to record strong trade performance with South Korea, registering double-digit growth in both total trade and exports last year...this MKFTA platform will drive the growth of trade volume between the two countries even further.
"MATRADE is looking at this platform as a tool for us to enhance our market access into Korea in various sectors, including medical and health, electric and electrical (E&E), as well as the fast-moving consumer goods," he told Bernama.
He said this on the sidelines of the ASEAN-Korea Trade Facilitation Mission to Malaysia, organised by the ASEAN-Korea Centre, the intergovernmental organisation in charge of promoting economic and socio-cultural cooperation between the Republic of Korea (ROK) and the 10 ASEAN member states.
In his opening remarks, Abu Bakar 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 said 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 E&E products, particularly integrated circuits and semiconductor devices, which play a critical role in global supply chains.
"Liquefied natural gas also remains a key pillar, further reinforcing Malaysia’s position as a reliable energy partner to Korea," he said.
Abu Bakar highlighted that over the past 10 years, bilateral trade between the two countries saw an estimated compound annual growth rate of about 7.8 per cent, with consistent year-on-year (y-o-y) expansion despite global economic uncertainties.
The most notable surge was observed in 2022 when bilateral trade grew by 29.2 per cent y-o-y, driven by the strong rebound in global demand and improved supply chain activity.
He added that this sustained upward trajectory underscores the resilience of Malaysia's economic ties, alongside increasing diversification across key sectors such as E&E, chemicals, machinery and high-value manufacturing.
-- BERNAMA
