Kuala lumpur: Malaysia has successfully concluded negotiations for a free trade agreement (FTA) with South Korea, with expectations to sign the agreement in October, as announced by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz. The announcement was made during a fireside chat session at Bursa Malaysia's Invest Malaysia event, highlighting the country's ongoing efforts to engage with global partners amidst rising geopolitical uncertainties.

According to BERNAMA News Agency, Tengku Zafrul emphasized Malaysia's commitment to expanding its market access through strategic global partnerships. "To date, we have concluded 18 FTAs, both bilateral and multilateral. We've signed two this year and resumed talks with the European Union," he stated during the session moderated by Bursa Malaysia CEO Datuk Fad'l Mohamed at the Macquarie ASEAN Conference.

Addressing Malaysia's diplomatic approach, Tengku Zafrul responded to inquiries regarding the country's engagement with BRICS, despite perceived pressure from former US President Donald Trump. He underscored the importance of maintaining a consistent foreign policy and engaging 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 remarked.

Tengku Zafrul also highlighted Malaysia's neutral stance in his comments, noting that, "Malaysia can't afford to (take sides). I think ASEAN is also playing that card well where we engage all parties."

In his keynote address, Tengku Zafrul reflected on the regional dynamics within ASEAN, asserting that the bloc's opportunities have evolved in light of global uncertainties. He pointed out that ASEAN's value proposition is rooted in trade openness, structural reforms, and the leadership of the bloc, showcasing its resilience.

However, Tengku Zafrul acknowledged challenges facing Malaysia and ASEAN, such as the proposed 100 percent tariff on imported semiconductor chips and transshipment issues. He noted that these are significant concerns, particularly as the United States remains a major market for Malaysia's electrical and electronics sector. In 2024, Malaysia exported RM119.86 billion worth of electrical and electronics goods to the US, with semiconductors representing RM60.6 billion of that value.

"All these risks and numbers reflect why we are actively engaging with Washington to ensure sectoral carve-outs are clear and fair," he added, stressing Malaysia's proactive measures.

Regarding transshipment risks, Tengku Zafrul detailed how Malaysia is collaborating with industry players to verify origin, enhance local value-add, and minimize 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 concluded.