SINGAPORE, Aug 18 (Bernama) — Malaysia has concluded its free trade agreement (FTA) negotiations with South Korea and is expected to sign the document in October, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz.
Speaking at a Bursa Malaysia Invest Malaysia fireside chat session, he said the move is part of the country’s continuous engagement with global partners to gain broader market access, particularly amid rising geopolitical uncertainty.
“To date, we have 18 FTAs, both bilateral and multilateral. We’ve just signed two this year. We have resumed talks with the EU this year,” he said during the session, which was moderated by Bursa Malaysia chief executive officer Datuk Fad’l Mohamed.
The session was held as part of the Macquarie ASEAN Conference here.
When asked about Malaysia’s engagement with BRICS, despite perceived threats from US President Donald Trump, Tengku Zafrul said it is important for Malaysia to remain consistent in its approach and to treat all countries equally.
“We are partners today. There are many other countries who are already members, and what’s important is that all these countries are also members of other economic blocs. So this will continue,” he said.
He also emphasised the importance of Malaysia maintaining a neutral stance.
“Malaysia can’t afford to. I think ASEAN is also playing that card well where we engage all parties,” he added.
Meanwhile, in his keynote address, Tengku Zafrul said that despite the current uncertainty, ASEAN’s opportunity has not disappeared, but merely evolved.
He said the region’s value proposition, rooted in trade openness, driven by structural reforms, and shaped by ASEAN’s current leadership, reflects the very resilience the grouping has worked hard to build.
Tengku Zafrul also highlighted the challenges facing both Malaysia and ASEAN, especially in light of the proposed 100 per cent tariff on imported semiconductor chips and the issue of transhipments.
He said this is concerning, as the United States remains a core market for Malaysia’s electrical and electronics (E&E) sector.
In 2024, Malaysia exported RM119.86 billion worth of E&E goods to the US, with semiconductors accounting for half of that value (RM60.6 billion).
“All these risks and numbers reflect why we are actively engaging with Washington to ensure sectoral carve-outs are clear and fair,” he added.
On mitigating transhipment risks, Tengku Zafrul said Malaysia is working closely with the industry to verify origin, enhance local value-add, and minimise accidental exposure.
“In parallel, we are also putting together a detailed supply chain mapping, diversifying markets, strengthening enforcement, and boosting local value-add in production,” he added.
— BERNAMA
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