MITI secures RM24b potential investments from South Korea

The trade mission to South Korea

The Ministry of International Trade and Industry (MITI) has secured potential investments worth RM24 billion, plus RM4.24 billion in potential exports of products and services, through a recent trade and investment mission to South Korea.

The mission, led by MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz from 14-17 March 2023, is part of the ministry's push to attract quality investment and draw local companies further into higher-value global supply chains. Tengku Zafrul said South Korean firms have shown strong interest in Malaysia, particularly around sustainable and green technology — carbon capture storage, hydrogen energy, and electric vehicles.

"Malaysia's economic competitiveness in the future will depend on whether we can secure access to and master green technology. Therefore, it is crucial for Malaysia to work with investors that can help us unlock growth in areas that support our sustainable agenda, (and) I hope South Korea can work closely with us on this as we chart a more resilient journey together for the challenges ahead," — Tengku Zafrul

New investment projects

Investment projects discussed during the mission involved Samsung Engineering, SKC, Lotte Fine Chemicals, Hyundai, COWAY, and a consortium of Korean companies. Lotte Energy Materials, Samsung Engineering and POSCO Holdings also indicated commitments to new Malaysian investment, alongside technology transfer, high-value job creation, talent development, and collaboration with local universities and SMEs.

Talks and collaboration

Tengku Zafrul met South Korean Trade Minister Dukgeun Ahn to discuss resuming bilateral free trade agreement negotiations, forming a ministerial trade cooperation dialogue, and potential cooperation on the digital economy, green economy, renewable energy and supply chains under the Indo-Pacific Economic Framework (IPEF) and Regional Comprehensive Economic Partnership (RCEP).

The mission also included a business seminar attended by more than 250 industry figures from both countries, a venture capital roundtable with over 20 South Korean VC investors — several expressing interest in setting up robotics and AI businesses in Malaysia — and a reception marking the 40th anniversary of the Look East Policy between the two nations. At the VC roundtable, chaired by Tengku Zafrul, four MOUs were signed committing Korean VCs to invest up to US$400 million in Malaysia. The reception, jointly hosted by MITI and the Malaysian embassy in Seoul, was attended by South Korean Foreign Affairs Minister Park Jin, Vice-Minister Lee Do-hoon, business leaders, government officials, and Malaysian professionals and students based in South Korea.

Source: The Sun (Bernama)