Malaysia and South Korea Project Trade Surpassing $40 Billion Amid Deepening Defence Ties
Malaysia and South Korea anticipate bilateral trade exceeding $40 billion in 2026 as a free-trade agreement nears completion, while defence and technology cooperation expands.
Bilateral commerce between Malaysia and South Korea is set to break the $40 billion mark in 2026, after climbing from about $20 billion to almost $30 billion over the last five years. Outgoing ambassador Yeo Seung-bae said the forthcoming free-trade agreement will push Korea into Malaysia’s top five trade partners. Relations were upgraded to a Strategic Partnership in November 2024, followed by a 2025 defence-industry memorandum of understanding.
South Korea will deliver the first two FA-50 fighter jets this month, with a total of 18 slated for Kuantan Air Base by 2028, and is fitting Haegung surface-to-air missiles on the LMS Batch 2 ships KD Jebat and KD Lekiu. The partnership also aims to involve Korean participation in Malaysia’s multi-role support ship programme. Korean companies are eyeing rare-earth ventures in Perak and Pahang, while Samsung SDI expands its battery plant, Simmtech grows its semiconductor operations, and Hyundai begins local vehicle assembly.
