South Korea and Malaysia have formalized a new strategic partnership, enhancing cooperation in defense, critical minerals, and green energy. The agreement was signed on Monday at the Yongsan Presidential Office in Seoul by South Korean President Yoon Suk Yeol and Malaysian Prime Minister Anwar Ibrahim.
The deal includes collaboration on supplying critical minerals from Malaysia’s reserves, which are crucial for South Korea’s industries, as well as support for Malaysia’s efforts to upgrade its air force jets. The summit discussions also highlighted increased trade and joint initiatives in green energy, strengthening the overall ties between the two nations.
The summit additionally focused on advancing economic and defense collaboration between South Korea and Malaysia. Both leaders committed to concluding a bilateral free trade agreement (FTA) by next year, aiming to expand ties beyond trade and investment to include sectors like digital economy, green technology, and bioeconomy.
The FTA is expected to further enhance the already strong trade relationship. Malaysia is South Korea’s third-largest trade partner in ASEAN, and bilateral trade is expected to reach $25 billion in 2023.
In defense, President Yoon highlighted the successful delivery of 18 FA-50M light fighter jets to Malaysia as part of a $920 million deal in 2023 and expressed hopes for continued participation by Korean firms in Malaysia’s defense modernization projects.
Prime Minister Anwar affirmed Malaysia’s willingness to collaborate in defense, emphasizing joint training and cooperation in research, development, and military technology.
The leaders also emphasized the importance of green energy cooperation and achieving carbon neutrality. They discussed implementing a carbon capture and storage project set to begin in 2029 and agreed to strengthen collaboration under the Paris Agreement to reduce greenhouse gas emissions. Both nations see this as a critical step toward sustainable development and combating climate change.
During his visit, Anwar also engaged with South Korean business leaders, promoting Malaysia as an attractive destination for high-value investments in sectors like semiconductors, electric vehicles, and green technology. He held discussions with representatives from 147 companies, including major firms like Samsung, SK Nexilis, and Posco Group, aiming to boost economic ties and technological collaboration.
President Yoon and Prime Minister Anwar expressed shared concerns about growing military ties between North Korea and Russia, emphasizing the need for regional stability. They also discussed the ongoing humanitarian crisis in Gaza and the escalating violence in Lebanon, underscoring their commitment to peace in the Middle East.
Both leaders agreed to strengthen their collaboration in addressing global and regional challenges through multilateral platforms such as the Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN).
On the sidelines of the summit, officials from both nations signed agreements on critical mineral supply chains, carbon capture and storage technology, and tourism. Prime Minister Anwar highlighted the potential for cooperation in clean hydrogen, describing South Korea and Malaysia as ideal partners in the sector.
