South Korea SMEs Keen To Relocate To Malaysia

KUALA LUMPUR, May 15 (Bernama) -- A South Korean delegation representing 20 small and medium enterprises (SMEs) with a minimum potential investment value of US$50 million, are very keen to make Malaysia the choice location for the new wave of Korean investments. Seven of the companies are new while the rest are existing investors seeking opportunities to expand and diversify their existing operations, mainly in the manufacturing sector. Song Sung Ho, Vice President of South Korea's Small & Medium Business Corporation (SBC), said they had expressed keen interest to relocate their businesses from not only Korea but also from other countries in the region to Malaysia to support the big companies such as Samsung and Hyundai. "Besides that, the potential Korean investors are interested to develop industrial and logistics hubs in Malaysia for exporting overseas," he said after a seminar on "Business Opportunities in Malaysia" jointly hosted by the SBC and the Malaysian Investment Development Authority (MIDA) here Tuesday. He said although China and Vietnam would have been the most preferred markets, their focus for a highly sought-after investment destination had shifted to Malaysia due to its political stability and security, resilient economy, population mix and modern and friendly investment environment. "Korea lacks natural resources but we have developed the Korean entreprenuership as well as an efficient and streamlined business system, thus we are going global and to expand our economy. "So, we are interested in Malaysia," Song said. South Korea is Malaysia's eighth largest trading partner, accounting for 3.8 per cent of the country's total trade. In 2011, total trade between both nations stood at US$16 billion. In terms of approved investments, South Korea was Malaysia's second largest foreign investor in the manufacturing sector last year with US$1.6 billion. MIDA Deputy Chief Executive Officer II Phang Ah Tong said Malaysia was upbeat that the Korean investment momentum into Malaysia would be sustained this year. "The pressure on cost of doing business in Korea has become a push factor for Koreans to seek opportunities elsewhere, and they are keen for market accessibility," he said. -- BERNAMA