KUALA LUMPUR (April 21): The Ministry of Investment, Trade and Industry (Miti) is optimistic that South Korea will climb the ranks as among the main sources of foreign direct investments (FDI) into Malaysia soon.

This is because most investments from South Korea are in the chemical and petrochemical sector, which is one of the focus sectors under the New Industrial Master Plan (NIMP 2030), said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said that of the 11 priority segments, the chemicals segment has been identified as one of the high-impact and growth sectors that would contribute to the NIMP 2030 overall targets.

“The specialty chemicals market is substantial. And there is an opportunity for Malaysia to capture that business by producing specialty chemicals domestically, capturing both domestic market demand and export opportunities.

“Our strategies are also laid out in our Chemical Industry Roadmap 2030, which aims for our chemical industry to be ranked first in Asean in terms of FDI inflow by 2030," he said in his speech during the launch of the new OCI Holdings regional headquarters here on Sunday.

In 2023, the country's main sources of FDIs were Singapore, the US, China and Japan.

Zafrul said that collectively, since 2017, OCI Malaysia (OCIM) and its joint venture partners have committed close to RM16 billion in Malaysia.

“We value your support in helping us develop greater industrial linkages domestically and abroad.

“We also appreciate OCIM’s latest investments amounting to RM7 billion, which I was informed will be used to produce polycrystalline silicon for semiconductors and solar cells as well as epichlorohydrin (ECH).

“The manufacturing of ECH in Malaysia will strengthen the value chain of epoxy manufacturing, contributing towards increasing the competitiveness of the chemical industry in Malaysia,” he said.

South Korea-based energy and chemical company OCI Holdings announced the official opening of its regional headquarters here, marking a significant milestone in its commitment to expand its presence in the region.

OCI Holdings chairman Lee Woo Hyun said the new OCI M Sdn Bhd office is located in a thriving economic hub in Southeast Asia and will serve as a pivotal centre for the company's operations, facilitating closer collaborations with stakeholders, partners and clients across the region.

Zafrul said OCI’s move reaffirms the nation's attractiveness as a preferred destination for foreign investment and underscores the confidence that global companies have in the local economy, infrastructure and skilled workforce.

“It demonstrates our country's ability to provide a conducive environment for companies to thrive, innovate and expand their operations,” he said.