Malaysia is hoping to attract more foreign investment this year after a major drop in 2020. In a January report, the United Nations Conference on Trade and Development said foreign direct investment (FDI) into the country slid 68% last year, the biggest drop in Southeast Asia.

Aside from the impact of the Covid-19 pandemic, the World Bank has attributed falling FDI in part to long-standing policy and structural issues.

The deals with South Korea and Japan came as international trade and industry minister Azmin Ali wrapped up a week-long trade mission to both countries on Tuesday.

“The mission, also the first for this year, was paramount to the rigorous efforts by the ministry … to bring in foreign direct investments into Malaysia,” the ministry said in a statement.

South Korean firms had committed in the immediate term to invest a total of RM7.3 billion in Malaysia, and to purchase exports of Malaysian goods amounting to RM70 million, the ministry said.

Japanese companies had agreed to invest RM8.75 billion and buy RM916.15 million of Malaysian products.

This includes an RM1 billion investment from Nippon Electric Glass to produce glass fibre for the automotive, construction and energy sector, the ministry added.

The ministry did not give a specific time frame for the investments to be made.