Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz.
SINGAPORE: Malaysia has concluded negotiations for a free trade agreement (FTA) with South Korea and is expected to sign the agreement in October, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz.
Speaking during a fireside chat session at Bursa Malaysia's Invest Malaysia event, he said the agreement reflects the country's continuous engagement with global partners to gain broader market access, particularly amid rising geopolitical uncertainties.
"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 said.
The session was moderated by Bursa Malaysia chief executive officer Datuk Fad'l Mohamed and held as part of the Macquarie ASEAN Conference.
When asked about Malaysia's engagement with BRICS, despite perceived pressure from US President Donald Trump, Tengku Zafrul said it is important for Malaysia to remain consistent in its foreign policy approach and engage all countries on equal terms.
"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 (take sides). 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 global uncertainty, ASEAN's opportunity has not disappeared, but rather 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 bloc has worked hard to build.
Tengku Zafrul also highlighted the challenges facing both Malaysia and ASEAN, including the proposed imposition of 100 per cent tariff on imported semiconductor chips and the issue of transshipments.
He said this is particularly 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 transshipment risks, Tengku Zafrul said Malaysia is working closely with industry players 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
