SEOUL, April 23 (AJP) - The Global South is moving to the center of South Korea’s strategic calculus, underscored by this week’s presidential visits to India and Vietnam, as Malaysia seeks to harness the momentum to leverage complementary strengths — not just to mitigate Gulf-driven disruptions, but also to redesign energy security, its top envoy to Seoul said.
Energy security will serve as the starting point for deeper alignment, with Malaysia’s LNG exports and South Korea’s downstream industrial capacity forming “mutual dependability,” Malaysia’s ambassador to South Korea, Dato’ Mohd Zamruni Khalid, told AJP in an interview on Wednesday.
“The carbon dioxide can be transported to Malaysia and injected into depleted reservoirs for long-term storage,” he said, pointing to cross-border carbon management as one of the most tangible new pillars of bilateral cooperation.
The push comes as Seoul steps up engagement with emerging economies across Asia, with President Lee Jae Myung’s visits underscoring a strategic pivot toward Global South partners as geopolitical shocks reshape trade and energy flows.
The urgency has intensified since the Feb. 28 outbreak of war and disruptions around the Strait of Hormuz, a chokepoint through which more than 20 percent of global oil and LNG shipments pass. According to the United Nations Conference on Trade and Development, vessel traffic plunged roughly 95 percent, from an average of 129 ships a day in February to about six in March.
The shock has sharpened concerns over South Korea’s supply concentration risks while elevating Malaysia’s strategic relevance. Australia accounted for 31.4 percent of South Korea’s LNG imports last year, followed by Malaysia at 16.1 percent and Qatar at 14.9 percent, underscoring Kuala Lumpur’s position as a key energy supplier.
Trade patterns suggest diversification is already underway. According to Korea International Trade Association data, South Korea’s imports of Malaysian crude surged 140 percent in March from a year earlier, while imports from seven Middle Eastern countries fell 18.3 percent, lowering their share to 62.9 percent from 73 percent a year earlier.
Malaysia’s estimated 2.7 billion barrels of proven oil reserves, ranking around 29th globally, reinforce its positioning not only as an LNG supplier but as part of a broader hedging strategy against geopolitical concentration risk.
Khalid said the relationship is already anchored on a broad foundation.
Bilateral ties are “very strong, increasingly strategic,” extending beyond politics into economic, technological and defense cooperation, with supply chains, semiconductors and energy security at the core.
Bilateral trade reached about $27.4 billion in 2025, remaining well above the $20 billion mark for several years — a level he said underscores the scale of progress already achieved.
“At the first level of partnership, we had already achieved over US$20 billion more than five years ago. This is quite significant,” he said.
That vision is increasingly reflected in policy and industrial strategy.
Malaysia’s New Industrial Master Plan 2030 — aimed at shifting the economy toward high-value manufacturing — places advanced manufacturing, digitalization, Industry 4.0 and the green transition at the core of its growth agenda.
The government’s semiconductor push further highlights its role in global packaging and testing. According to Malaysia’s Ministry of Investment, Trade and Industry and the Malaysian Investment Development Authority, the country accounts for about 13 percent of the global semiconductor assembly, testing and packaging market and ranks as the world’s sixth-largest semiconductor exporter, offering Korean chipmakers a base for supply chain diversification in Southeast Asia.
Khalid said these priorities align closely with Korea’s industrial strengths.
He pointed to high-end semiconductor manufacturing, digital transformation, Industry 4.0 and the green energy transition, while also naming EV batteries, green hydrogen, CCUS, medical devices, machinery, automation, e-commerce, fintech and artificial intelligence as promising areas for collaboration.
These sectors reflect both countries’ push to move up the value chain while responding to demand for resilient supply chains and low-carbon technologies.
“Effectively aligning Korea's technology maturity and also Malaysia's aggressive net zero targets and resource availability,” he said.
The envoy stressed Malaysia’s carbon capture initiatives under its broader CCUS framework.
While South Korea primarily focuses on carbon capture and storage (CCS), Malaysia adopts a wider approach.
“We use ‘CCUS’ — because we, after capturing the carbon, we want to reutilize, and then also to be used in the storage. So that’s why ‘U’ is quite important for us,” he said.
CCUS — carbon capture, utilization and storage — incorporates reuse before permanent storage, reflecting Malaysia’s push to maximize economic value from decarbonization.
Khalid said Malaysia’s regulatory framework has strengthened the case for cooperation.
“When the Malaysian Parliament approved the CCUS Act, this landmark legislation, along with the establishment of the Malaysia CCUS Agency, provided a comprehensive framework covering capture, transportation and permanent storage,” he said.
He added the legal clarity provides Korean investors with a clearer pathway to participate in cross-border CO₂ transport, allowing emitters in South Korea to capture carbon domestically and ship it to Malaysia for offshore storage.
As of 2026, the primary gateway is Petronas.
Khalid noted Petronas is already working with several South Korean firms, including Samsung Engineering and the Korea National Oil Corporation, on cross-border CCUS value chains.
“These partnerships offer a unique opportunity to act both as technology providers and as end users of low-carbon molecules, securing long-term energy supplies for Korea’s domestic hydrogen economy goals,” he said.
He added that last year’s legislation would enable further cooperation, noting South Korea’s strong interest in participating in the CCUS platform.
Malaysia’s CCUS Act 2025 took effect on Oct. 1, 2025, providing the basis for the country’s first offshore assessment permit, with authorities positioning it as a key pillar of the low-carbon transition.
Beyond energy, Malaysia is also seeking to combine Korea’s consumer strengths with its halal ecosystem.
Anchored by the Department of Islamic Development Malaysia (JAKIM), which oversees halal certification, the country offers a “complete halal value chain,” positioning Malaysia as an ideal base for Korean companies seeking halal-certified production and regional distribution.
He noted strong potential in halal beauty and derma products, combining Korea’s innovation with Malaysia’s certification credibility and market access.
Malaysia has developed comprehensive infrastructure — including halal-certified restaurants, prayer facilities and accommodation — making it one of the top destinations for Muslim travelers and an ideal production and distribution base.
With Malaysian visitor numbers to South Korea exceeding 300,000 in 2025, Khalid said both countries could deepen cooperation in catering to Muslim tourists.
Improving Muslim-friendly infrastructure in South Korea — including better access to prayer facilities and halal food — would support further growth, he said.
“Malaysia can help the ROK in this in the tourism sector, catering for Muslim tourists.”
He added that “both Malaysia and South Korea can work together in the halal industry across food, cosmetics and tourism sector.”
The tourism argument runs both ways.
Malaysia is pushing its Visit Malaysia 2026 campaign after welcoming more than 25 million international visitors in 2024, leveraging food, culture and education-linked travel.
Khalid said Korean visitors are particularly drawn to Malaysia’s culinary diversity, tied to its long-running “Malaysia Truly Asia” branding.
He also pointed to strong cultural pull factors, with more Malaysians learning Korean through K-pop, dramas and food.
According to the Korea Foundation for International Cultural Exchange’s 2025 survey, about 70.2 percent of Malaysian respondents said their perception of Korea improved after consuming Korean cultural content, underscoring the strong influence of Korean media, particularly among younger audiences.
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