Malaysia secures RM24b potential investments in EV, carbon capture, chemicals from South Korea - MIDA | Malaysian Investment Development Authority
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Malaysia secures RM24b potential investments in EV, carbon capture, chemicals from South Korea

Malaysia secures RM24b potential investments in EV, carbon capture, chemicals from South Korea

21 Mar 2023

The trade and investment mission to South Korea has secured RM24 billion in potential investments for Malaysia.

SKC, POSCO Holdings, Coway and LOTTE Fine Chemical were among the companies that expressed interest in investing in Malaysia, the Malaysian Investment Development Authority (Mida) said in a statement on Tuesday (March 21).

SKC is exploring the possibility of making additional investments in the electric vehicle (EV) segment in Malaysia due to increasing demand for Li-ion batteries in various industries worldwide.

“Malaysia is a strategic location for rapid global expansion of EV investments as it has started to develop the necessary infrastructure and materials to support the expansion of EV battery production,” said Jae Hong Yi, chief executive officer of SK Nexilis, a subsidiary of SKC.

Similarly, POSCO Holdings is planning to develop a carbon capture storage project and further expand its steel processing plant in Malaysia to support new business segments such as EV, batteries, and green energy.

“Malaysia has high potential for carbon storage, which is in line with Malaysia’s commitment towards the ESG (environmental, social and governance) agenda, including achieving net-zero greenhouse gas (GHG) emissions by 2050 at the earliest,” said POSCO Holdings senior executive vice-president and head of its green materials and energy business team Yoo Byeong-Og.

Coway expressed the company’s confidence in the country’s economic fundamentals and pro-business environment by announcing its decision to establish its first manufacturing hub and research and development (R&D) facilities outside of South Korea.

“The establishment of the R&D center is aligned with Malaysia’s National Investment Aspirations (NIA) to develop high-value, innovative, and advanced technology products, creating high-income and knowledge-intensive jobs for Malaysians.

“We are confident that the favourable business climate and talented workforce in Malaysia will be key drivers in enhancing our market presence and contributing to the growth of the nation’s economy,” said Coway’s CEO Jangwon Seo.

LOTTE Fine Chemical proposed a project that will further enhance local production capabilities, support the transition of industries value chain to the next level, and create more high-income and knowledge-intensive jobs

LOTTE Fine Chemical said it sees great potential in diversifying its investments in Malaysia.

“The chemical industry is a crucial sector in Malaysia, ranking fourth in terms of industry size and third in terms of imports. With this proposed project, LOTTE Fine Chemical aims to enhance local production capabilities, enabling the transition of the industry’s value chain to produce more advanced and high-value products,” said LOTTE Fine Chemical president and CEO Yong Seok Kim.

In 2022, Mida announced approved investments in various economic sectors totalling RM264.6 billion. Of this amount, a total of 15 manufacturing and services projects under Mida’s purview with South Korean participation have been approved with total investment worth US$1.42 billion (RM6.35 billion).

These projects have the potential to generate employment for 1,389 people, according to Mida.

In 2022, South Korea is ranked the seventh largest foreign investor in Malaysia in terms of approved investments for 2022.

Mida CEO Datuk Wira Arham Abdul Rahman said securing RM24 billion in potential investments for Malaysia from South Korea stands as a testament to the country’s steadfast commitment to attracting top-tier investments and augmenting the participation of local companies in the global supply chains.

Source: The Edge Markets