Malaysia and South Korea Strengthen Ties in AI, Green Tech, and Nuclear Energy
The strategic cooperation between Malaysia and South Korea expands into high-value sectors such as AI, EVs, and nuclear energy. This partnership aligns with industry trends and addresses global supply chain challenges.
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Bilateral trade between Malaysia and South Korea reached a record US$27.9 billion in 2025, elevating Malaysia to the 11th position among South Korea's trading partners. The relationship now emphasizes high-value industries, notably semiconductors, where Malaysia acts as a key hub in backend activities like assembly and packaging, while South Korea leads in memory production.
Recent initiatives, including the Korea-Malaysia Semiconductor Cooperation Centre, are enhancing collaboration in advanced packaging and AI infrastructure. The new Malaysia-South Korea Free Trade Agreement (FTA) aims to bolster economic ties in digital technology and strategic sectors.
Energy cooperation is also on the rise, with potential partnerships in carbon capture and nuclear energy development. Malaysia's aspirations in EV adoption may further attract Korean investments.
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