Malaysia looks east to Korea for future economic growth

The Korea Times

The Korea Times

National

Thu, November 30, 2023 | 10:54

Foreign Affairs

Malaysia looks east to Korea for future economic growth

Posted : 2023-03-18 08:15

Updated : 2023-03-20 00:35

Malaysia's Minister of International Trade & Industry Tengku Zafrul Aziz delivers keynote speech during a seminar on business and investment opportunities in the Southeast Asian country at a hotel in Seoul, March 14. Courtesy of Embassy of Malaysia in Korea

By Kwon Mee-yoo

Malaysia is one of the Southeast Asian countries that turned its gaze toward the East earlier than its neighbors. It has celebrated the 40th anniversary of its Look East Policy (LEP), which aimed to gain knowledge and expertise from East Asian countries including Korea, Japan and China, when everyone else looked to the West.

While the policy's first target was Japan, Malaysia is hopeful that now the LEP can contribute to strengthening ties with Korea amidst global challenges.

Malaysia's Ministry of International Trade and Industry (MITI), Malaysian Investment Development Authority (MIDA) and Malaysia External Trade Development Corporation (MATRADE) co-hosted a seminar on business and investment opportunities in Malaysia at a hotel in central Seoul on March 14, attracting hundreds of Korean businesspeople and related officials.

Malaysia's International Trade and Industry Minister Tengku Zafrul Aziz, who led a large delegation from Malaysia with the aim of strengthening existing business ties and forging new partnerships with Korean companies, gave a keynote speech during the seminar.

"MITI is determined to re-position Malaysia as a stable, investor-friendly, ESG-committed and competitive economic force in Southeast Asia," he said, with respect to his top four priorities.

The four priorities are ― ensuring trade as a key growth driver; future-proofing industries through digitalization and environmental, social and corporate governance (ESG) principles; restoring investors' confidence and increasing foreign direct investment (FDI); and ensuring trade agreements to benefit both investors and Malaysians and support micro-, small and medium-sized enterprises (MSMEs) in the supply chain.

Malaysia's Minister of International Trade & Industry Tengku Zafrul Aziz, right, shakes hands with Korea's Foreign Minister Park Jin during a reception commemorating the 40th anniversary of Malaysia's Look East Policy in Seoul, March 15. Courtesy of Embassy of Malaysia in Korea

Zafrul noted that Korea is the seventh-largest foreign investor in Malaysia in 2022 thanks to the strategic collaboration through the LEP in the past four decades.

"Embarking on a journey of nation building, the knowledge and technology transfer by Korea through the LEP has resulted in productivity enhancement, further driving industrial development and the nation building of Malaysia," the minister said.

The minister emphasized the importance of diversifying and expanding Malaysia's economic relationship with Korea beyond the traditionally strong sectors.

"While our economic relationship may be heavy in the semiconductor and electronics industry as well as petrochemicals, I am happy to note that this is diversifying and expanding into new and exciting areas of growth," he said.

"As with any relationship, we need to spruce things up once in a while to keep it exciting. A rebalancing of our bilateral trade and investments portfolio every now and again to keep it relevant with the times is indeed something that we ought to pursue strategically."

As the focus in Malaysia is on diversifying and expanding the economy to produce high-value products, the future of economic competitiveness depends on securing and mastering green technology. Malaysia hopes to work with Korea to achieve this goal.

Zafrul said Malaysia's New Investment Policy is favorable for investments from Korea, especially in high-tech, innovation, and skills-intensive industries to integrate with Malaysia's supply chain and create high-income jobs for Malaysians.

"Malaysia has much to offer when it comes to business with a skilled talent pool and strong economic fundamentals that are pro-business, prudent and pragmatic," he said. "Look no further, we in Malaysia welcome you with open arms."

During the seminar, two Korean companies shared their experiences of conducting business with Malaysia. According to CORETech, Malaysia's strategic location in Southeast Asia and the large number of Malaysians who have studied and worked in Korea mean that communication is easy.

Saemi Corp., which has traded with Malaysia, highlighted that Malaysia was the only country that the company did not experience shipping delays of more than two weeks, even during the COVID-19 pandemic. It praised MATRADE for arranging video conferences between importers and exporters.

meeyoo@koreatimes.co.kr