Malaysia's Ministry of Investment, Trade and Industry has announced that Malaysia and South Korea have completed a free trade deal, creating a modern trade structure that directly benefits the steel and manufacturing industries. The agreement marks Malaysia's 19th free trade agreement and is a step forward in bilateral economic cooperation.
Steel sector under the Malaysia-Korea Free Trade Agreement (MKFTA)
Steel is among the key industrial products identified in the agreement. Malaysia and South Korea agreed to:
- liberalize tariffs on semi-finished and finished steel products.
- Improve customs simplification for the supply of flat steel, wire rod and alloy steel.
- Promote joint ventures between factories and component manufacturers in both countries.
- Promote research collaboration on low-carbon steel, hydrogen-based recovery and carbon capture, utilization and storage technologies.
The inclusion of steel in the MKFTA is expected to create smoother trade flows and increase cooperation on industrial upgrading, especially for high-value manufacturing in the automotive and construction industries.
Green steel and digital supply chains
Both countries have committed to creating resilient supply chains in critical industries. Through its economic cooperation chapter, MKFTA supports the transition to cleaner steel production, increasing carbon efficiency across all
