InterviewMalaysia positions itself as Korea's long-term tech partner

Malaysia External Trade Development Corporation (MATRADE) and Malaysia Investment Development Authority (MIDA) officials pose at the Malaysian Embassy in Seoul, July 23. From left are MATRADE Assistant Trade Commissioner Nur Syazana Abd Rahman, MATRADE Trade Commissioner Mohamad Termizi HJ Piee, MIDA Director Redzuan Abd Rahman and MIDA Seoul Deputy Director Chrisendra Shankrie. Courtesy of MATRADE, MIDA in Korea

Malaysia is seeking to elevate its economic partnership with Korea beyond traditional manufacturing and trade by positioning itself as a long-term strategic partner in high-value industries, ranging from semiconductors and artificial intelligence (AI) to electric vehicles, renewable energy and the fast-growing global halal economy.

In an interview with The Korea Times, Malaysian Investment Development Authority (MIDA) Director Redzuan Abd Rahman and Malaysia External Trade Development Corporation (MATRADE) Trade Commissioner Mohamad Termizi HJ Piee said the two countries' economic relationship has entered a new phase, with growing opportunities for Korean companies to leverage Malaysia as both an investment destination and a gateway to the wider ASEAN market.

"Malaysia and Korea have built a strong and enduring economic partnership over the past several decades," Redzuan said. "We believe the greatest opportunities lie in deepening collaboration in industries that are shaping the future of our economies."

According to MIDA, Korean companies have implemented investments totaling $11.7 billion across more than 400 projects in Malaysia as of 2025, creating nearly 50,000 jobs. Those investments span chemicals, transport equipment, electrical and electronic products, petroleum products and basic metals.

Redzuan highlighted that the two countries' respective national development strategies are highly complementary, explaining that while Korea continues to advance its leadership in semiconductors, AI, advanced manufacturing, mobility, batteries and green technologies, Malaysia is implementing the New Industrial Master Plan 2030, the National Semiconductor Strategy and the National Energy Transition Roadmap "to accelerate industrial transformation toward higher-value, innovation-driven and sustainable industries."

This strong strategic alignment presents significant opportunities for deeper Malaysia-Korea collaboration in investment, technology and industrial partnerships, reinforcing Malaysia's position as a strategic destination for Korean companies seeking regional growth.

Termizi echoed that assessment from the trade perspective, pointing to rapidly expanding bilateral commerce between both countries.

"Malaysia and the Republic of Korea have built a strong and resilient economic partnership, supported by growing trade, complementary industries and close cooperation through ASEAN and regional trade agreements," he said.

From January through June this year, bilateral trade increased a whopping 52.3 percent year-on-year to $19 billion, with Malaysia's exports to Korea rising 44.2 percent and imports from Korea climbing 58.9 percent.

"From MATRADE's perspective, the next phase should focus on diversifying trade into emerging sectors such as AI, robotics, medical devices, green technology, digital services and the halal economy, while helping more Malaysian SMEs participate in Korean supply chains," he said. "Ultimately, our priority is to transform conventional buyer-seller relationships into long-term partnerships involving technology, innovation, joint product development and access to wider regional and global markets."

Gateway to ASEAN

As Korean companies continue diversifying their supply chains across Southeast Asia, both officials highlighted the advantages Malaysia offers beyond competitive production costs. Redzuan said Malaysia combines "industrial maturity, strategic location and policy stability" with more than five decades of experience in electrical and electronics manufacturing.

"Malaysia handles roughly 13 percent of global semiconductor packaging and testing, providing an established supplier ecosystem that significantly lowers market entry risks," he said.

He also stressed the country's multilingual, English-proficient workforce, strong intellectual property protection and long-term industrial policy frameworks.

"Unlike markets that compete solely on low labor costs, Malaysia offers Korean investors an ecosystem capable of supporting capital-intensive, high-tech and ESG-compliant manufacturing from Day 1," Redzuan said.

Termizi similarly described Malaysia as "a strategic gateway to ASEAN," citing its participation in major trade agreements including the Regional Comprehensive Economic Partnership and the ASEAN-Korea Free Trade Agreement (FTA), in addition to its multilingual business environment. He added that the upcoming Malaysia-Korea FTA is expected to further strengthen bilateral trade and investment, enhance market access and create new opportunities for businesses in both countries.

"These strengths make Malaysia an ideal sourcing partner for Korean companies seeking to build resilient and diversified supply chains," Termizi said.

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Semiconductors, AI and EVs

Asked where bilateral cooperation could expand most significantly over the coming years, both officials identified advanced technology industries as priority areas. Redzuan said Malaysia aims to deepen collaboration with Korea in advanced electronics, electric vehicles (EV), renewable energy and digital infrastructure, as the Southeast Asian country accelerates its dual transition toward a high-tech and low-carbon economy.

"We see Korean firms not merely as foreign investors, but as long-term strategic partners that co-develop intellectual property, upskill local engineering talent and integrate Malaysian suppliers into global value chains," Redzuan said.

Termizi likewise pointed to opportunities in semiconductors, AI, robotics, smart manufacturing, medical devices, green technology and digital services.

"Malaysia is already a key player in the global semiconductor ecosystem, while Korea is recognized for its leadership in advanced technologies and industrial innovation," he said. "These complementary strengths create opportunities for greater collaboration in supply chains, technology partnerships and regional market expansion."

A view of SK Nexilis' copper foil plant in Malaysia / Courtesy of SKC

From investment to sustainability

Redzuan cited Korean conglomerates including SK Nexilis, Samsung, POSCO, OCI and Lotte as examples of successful investments in Malaysia, highlighting SK Nexilis' $540 million EV copper foil manufacturing facility in Sabah as the company's largest overseas investment.

He said MIDA supports investors through end-to-end facilitation, including manufacturing licenses, tax incentives and expatriate services, while MATRADE connects Korean companies with Malaysian suppliers through business-matching programs.

"Together, MIDA Seoul and MATRADE Seoul handhold investors from the initial site selection and regulatory approvals all the way through to commercial operations and supply chain localization," he said.

Both officials reaffirmed their commitment to supporting Korean companies seeking opportunities in Malaysia, noting that MIDA Seoul and MATRADE Seoul are conveniently co-located at the Malaysian Trade and Investment Centre near Jonggak Station in central Seoul. That arrangement, they said, gives Korean businesses a single point of contact for investment- and trade-related inquiries, reflecting Malaysia's commitment to delivering seamless support throughout every stage of the investment journey.

On sustainability, Redzuan said both countries' shared commitment to net-zero emissions by 2050 creates significant room for collaboration in renewable energy, hydrogen, carbon capture and storage, solar manufacturing and the circular economy.

Termizi noted that MATRADE launched its Sustainability Action Values for Exporters (SAVE) initiative back in 2019 to help Malaysian exporters strengthen environmental, social and corporate governance practices and remain competitive in global supply chains.

"By combining Korean technology with Malaysian manufacturing, engineering and market-access capabilities, companies from both countries can jointly develop and commercialize sustainable solutions for Malaysia, ASEAN and wider global markets," he said.

The Malaysia International Halal Showcase (MIHAS) is held at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur, Sept. 18, 2025. The event featured the newly launched MIHAS Knowledge Hub 2025, aimed at advancing innovation and driving growth in the global halal industry. Courtesy of MATRADE, MIDA in Korea

Halal economy offers new opportunities

Both officials also highlighted the halal economy as an area with particularly strong growth potential.

Redzuan said combining Korea's advanced biotechnology and pharmaceutical capabilities with Malaysia's internationally recognized halal certification system could unlock major opportunities in halal pharmaceuticals, functional foods and cosmetics.

Termizi emphasized that halal has evolved well beyond food: "Another misconception is that halal is only relevant to food," he said. "In reality, the halal economy now covers cosmetics, pharmaceuticals, health care, logistics, tourism and many other sectors, representing one of the world's fastest-growing consumer markets."

He encouraged Korean businesses to leverage Malaysia's well-established halal ecosystem to expand into Muslim markets across ASEAN, the Middle East, South Asia and Africa, while also pointing to the Malaysia International Halal Showcase (MIHAS) as a platform for building international partnerships. The upcoming 22nd edition of MIHAS will be held in Kuala Lumpur Sept. 23-26.