Earlier this month, ASEAN and South Korea completed their Framework Agreement on Comprehensive Economic Cooperation with the signing of the ASEAN-Korea Investment Agreement in Jeju Island.
The signing of the agreement was held during the ASEAN-Republic of Korea Commemorative Summit at the Juju International Convention Center.
Minister of International Trade and Industry Datuk Mustapa Mohamed signed the Agreement on behalf of Malaysia. The signing was witnessed by Prime Minister Datuk Seri Najib Tun Razak, all the other ASEAN leaders as well as Korean president Lee Myung Bak.
The agreement will promote investment flows and create a liberal, facilitative, transparent and competitive investment regime in ASEAN and Republic of Korea through:
- progressively liberalizing the investment regime;
- creating a conducive environment for ASEAN and the Republic of Korea’s investors and their investments;
- promoting cooperation on a mutually beneficial basis;
- encouraging and promoting the flow of investments and cooperation between ASEAN and Republic of Korea;
- improving transparency of investment rules; and providing for the protection of investments.
The agreement will come into force after at least one of ASEAN Member states and Korea have ratified and notified each other.
The Investment Agreement will facilitate and encourage investments between Malaysia and Republic of Korea, promote Malaysian outward investment to the region and further facilitate the integration of Malaysian companies into the regional economy.
Korean investments in Malaysia in the manufacturing sector amounted to US$55.5 million (RM184.8 million) in 2008 and US$325.2 million (RM1.2 billion) in 2007.
Malaysia’s investments in Korea, as reported by Bank Negara Malaysia, stood at US$ 16.7 million (RM55.6 million) in 2008 compared with US$6.9 million (RM23.7 million) in 2007.
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