Malaysia and Korea Boost Cooperation in the Halal Industry

Mohd Zamruni Khalid, Malaysia’s ambassador to Korea, is at the forefront of efforts to enhance bilateral relations between Malaysia and Korea. During an exclusive interview with The Korea Times at the Malaysian Embassy in Seoul on July 17, Khalid emphasized the burgeoning economic relationship, with a particular focus on the halal industry.

“The halal industry presents a significant area of collaboration between our two nations,” Khalid stated. “While this sector might be relatively new for Korean businesses, Malaysia’s established expertise and robust ecosystem offer valuable support. Our comprehensive system spans various sectors including food and beverages, Islamic finance, cosmetics, pharmaceuticals, fashion, and logistics. Korean companies seeking to enter Muslim markets can benefit greatly from Malaysia’s developed infrastructure and deep-rooted knowledge.”

Halal Certification and Market Access  in Bilateral Relations

Khalid highlighted that several Korean companies have already achieved halal certification from Malaysia’s Department of Islamic Development (JAKIM). “JAKIM’s halal certification is renowned worldwide, which simplifies the process for South Korean companies aiming to export to Muslim-majority regions,” he explained. This certification not only facilitates access to new markets but also enhances the credibility of products in the global halal industry.

Expanding Collaboration in Various Sectors

Beyond the halal industry, Khalid identified several other promising sectors for collaboration, including chemicals, electronics, aerospace, and medical services. “Our cooperation extends into various industries, including defense. Notably, our recent agreement to purchase 18 South Korean fighter jets has strengthened our defense partnership. This agreement underscores our commitment to fostering a multifaceted relationship between our countries,” he added.

Addressing Trade Challenges

Despite these positive developments, Khalid acknowledged ongoing challenges, particularly in the area of exporting Malaysian food products to Korea. “We face significant tariff barriers for some of our food products, including durians, which are popular in China but encounter difficulties in the Korean market. While the ASEAN-Korea Free Trade Agreement (AKFTA) has been instrumental in reducing some barriers, more work is needed,” he said. “Negotiations are underway for a Malaysia-South Korea Free Trade Agreement (FTA), which aims to address these issues comprehensively. Although discussions began in 2019, they were paused after two rounds. However, negotiations resumed earlier this year, with the second round scheduled to take place in Malaysia in August.”

Khalid highlighted the critical importance of finalizing the FTA to strengthen the two countries’ economic ties. “An FTA will lower tariffs and enhance economic relations, benefiting Malaysia and South Korea. We are optimistic about the potential outcomes of these negotiations,” he stated.

Diplomatic Relations and High-Level Exchanges

On the diplomatic front, Khalid, who relocated to Korea in April, emphasized the need for maintaining strong bilateral relations. “It is vital to nurture a positive relationship between Malaysia and Korea. We are working towards facilitating high-level visits from both nations. We hope that Malaysia’s prime minister will visit Seoul by the end of this year, with a reciprocal visit from Korea’s president to Malaysia next year,” Khalid said. He highlighted the recent high-level exchanges, noting that eight Malaysian ministers visited Korea last year, and several Malaysian chief ministers have visited this year. He hopes for similar reciprocation from Korea.

Khalid also revealed plans for a strategic partnership agreement between the two countries, which he hopes will be signed during the Malaysian prime minister’s visit. “Such agreements will further solidify our ties and open new avenues for collaboration,” he added.

Economic Impact and Investment Opportunities

Turning to the economic front, Khalid emphasized the significance of trade and investment between Korea and Malaysia. “Our trade with Korea reached nearly $25 billion last year, making Korea one of our largest trading partners. Korea is currently the 10th-largest trading partner for Malaysia, while Malaysia is the 11th-largest trading partner for Korea,” he explained. Khalid also highlighted Korea’s role as a major investor in Malaysia, with investments approaching $11 billion.

To attract further investment, Khalid pointed out Malaysia’s strategic advantages. “Malaysia boasts one of the best infrastructures in Southeast Asia and is strategically located, sharing borders with several key ASEAN countries. Additionally, we offer attractive tax incentives, such as Pioneer Status and the Investment Tax Allowance, which provide substantial tax relief for qualifying companies,” he said. These incentives make Malaysia an appealing destination for investors looking to enter the Southeast Asian market.

Cultural Exchange and Tourism Growth

Cultural exchange and tourism are also vital components of the Malaysia-Korea relationship. Khalid noted that Korea ranks as the 10th-largest source of tourists to Malaysia. “Last year, we welcomed over 400,000 Korean tourists, and we expect this number to rise to 570,000 this year. By 2026, we aim to attract over 700,000 Korean visitors, coinciding with Visit Malaysia Year 2026,” he said. Khalid expressed optimism about the tourism growth, driven in part by the increasing popularity of Korean pop culture, including K-dramas, K-pop, and Korean cuisine, which has sparked interest among Malaysians to explore Korea. “Last year, more than 200,000 Malaysians visited South Korea for tourism,” he added.

Educational and Cultural Diplomacy

The ambassador also highlighted Malaysia’s “Look East” policy, initiated in 1982, which encourages learning from East Asian nations like Korea and Japan. “As part of this policy, we have sent many Malaysian students to study in South Korea. Currently, over 1,000 Malaysian students are here, and their experiences contribute to raising Korea’s profile in Malaysia upon their return,” Khalid explained.

Looking ahead, Khalid expressed a desire to enhance Malaysia’s cultural presence in Korea through various initiatives. “I want to leverage South Korea’s influence to make Malaysia more prominent here. While many Koreans are familiar with countries like Vietnam, the Philippines, and Thailand, I hope to encourage them to explore Malaysia as well,” he said. One of Khalid’s plans is to organize a Malaysian festival in Korea to showcase Malaysian culture, food, and activities. “We want Koreans to experience Malaysia’s rich cultural heritage and culinary delights,” he added.

Promoting Malaysian Cuisine

Khalid also aims to introduce Malaysian cuisine to Korean audiences. “Koreans enjoy spicy food, so dishes like bihun goreng (fried vermicelli) and nasi lemak (rice with sambal and anchovies) could appeal to Korean tastes,” he suggested.

In conclusion, Khalid invited Koreans to explore Malaysia’s diverse attractions, from its stunning beaches to its vibrant cultural heritage. “Malaysia offers a wide range of experiences, and with our excellent infrastructure, it’s easy to travel across the country,” he said.

The strengthening of bilateral relations between Malaysia and Korea reflects a shared commitment to mutual growth and cooperation. This partnership is centered on expanding trade, investment, and cultural exchange, with a significant focus on the halal industry. As both nations continue to work together, the potential for deeper collaboration and enhanced ties in various sectors remains promising.