Malaysia and South Korea reaffirmed their commitment to fostering an investment climate aligned with environmental, social, and governance (ESG) principles.

The announcement followed a bilateral meeting between Prime Minister Datuk Seri Anwar Ibrahim and South Korean President Yoon Suk Yeol in Seoul on Monday.

In a joint statement, both leaders emphasised the importance of advancing research and development initiatives and promoting technology exchange between businesses in their respective countries.

"Focus areas include Fourth Industrial Revolution technologies, the digital economy, the halal ecosystem, and the green agenda," the statement read.

The two nations also pledged to enhance trade, investment, and economic cooperation.

They agreed to expedite negotiations for a bilateral Free Trade Agreement (FTA), which resumed in March 2024, with a target to finalise the deal by 2025.

Through the FTA, both sides are committed to deepening collaboration in trade and investment as well as in emerging sectors like the digital economy, green economy, and bioeconomy.

Additionally, the leaders recognised the significance of economic security collaboration, including efforts to strengthen supply chain resilience.

Acknowledging the role of small and medium enterprises (SMEs) and startups in fostering innovation and national competitiveness, both parties agreed to continue supporting greater collaboration and exchanges between SMEs and startups.

Reflecting on the 40th anniversary of the Look East Policy (LEP) celebrated in 2023, both countries highlighted its contribution to strengthening economic ties since its inception in 1983.

With the adoption of the Second Wave of the Look East Policy (LEP 2.0) guideline document in 2014, Malaysia and South Korea reiterated their commitment to maximise its potential in bolstering economic and trade relations.

"Both sides also acknowledged the crucial role of the Economic Cooperation Committee (ECC) in enhancing economic collaboration under LEP 2.0 and pledged to hold ECC meetings regularly," the statement said.

On digital and ICT collaboration, the two nations recognised the importance of digital government in boosting competitiveness and driving economic growth. They agreed to work closely on digital governance through joint knowledge sharing, capacity-building activities, and consultations.

Malaysia and South Korea will explore ways to strengthen cooperation in areas such as ICT policy, 5G, artificial intelligence (AI), and Big Data, building on the Memorandum of Understanding on ICT Cooperation signed in November 2019.

"Both sides underscored the value of ICT in achieving equitable, inclusive, and sustainable economic growth, expressing satisfaction with the successful completion of the AI-based smart farm IT cooperation project," it concluded.