Malaysian Prime Minister to Visit Korea Late This Month

Malaysian Prime Minister Anwar Ibrahim will visit Korea late this month for the first time since taking office to discuss cooperation measures between the two countries. It will be the first visit by a Malaysian Prime Minister to Korea in nearly five years since former Prime Minister Mahathir bin Mohamad attended the Korea-ASEAN Special Summit in November 2019.

According to diplomatic and business circles on Nov. 17, Korea and Malaysia plan to officially elevate their bilateral relationship to a strategic partnership during Prime Minister Anwar’s visit late this month. They will also strive to declare the conclusion of the Korea-Malaysia Free Trade Agreement (FTA) negotiations next year.

Malaysia is Korea’s third-largest trading partner and fourth-largest investment destination among ASEAN (Association of Southeast Asian Nations) member countries. Korea imports natural gas and petroleum products from Malaysia, while Malaysia imports petroleum products, semiconductors, and precision chemical raw materials from Korea, creating a complementary trade structure. Last year, Korea imported $15.2 billion worth of goods from Malaysia and exported $9.7 billion, resulting in a trade deficit of $5.5 billion.

Prime Minister Anwar will be accompanied by a delegation of over 100 economic representatives from Malaysia. He plans to hold a business forum with over 150 Korean business leaders who have invested or are considering investing in Malaysia. During the forum, Prime Minister Anwar will introduce Malaysia’s new industrial master plan and directly answer questions from Korean business leaders.

The level of interest from Korea’s top five conglomerates—Samsung, SK, Hyundai, LG, and Lotte—will be crucial. Amid the escalating U.S.-China trade conflict, Malaysia is emerging as an alternative production base to China. Earlier this year, Samsung Electronics Chairman Lee Jae-yong and Lotte Group Chairman Shin Dong-bin visited local factories in Malaysia. SK Group Chairman Chey Tae-won recognized Malaysia’s importance early on and chaired the group’s global strategy meeting in Malaysia in 2018. SK Nexilis operates a copper foil plant in Sabah, Malaysia, where electricity and labor costs are low.

An industry insider stated, “This business forum, organized by the Malaysian Investment Development Authority, is unique in that it allows participation from employees to top executives. Many presidents of petrochemical affiliates have already registered, and top executives are coordinating their schedules after receiving invitations.”