Malaysia halts all imports from North Korea in June 2017.
Context
In October 2017 it was reported that in June and July 2017, Malaysia completely halted all imports from North Korea. According to reporting that cited data from Malaysia’s Department of Statistics, this mechanism did not include any restrictions on Malaysia’s exports to North Korea, which included palm oil and medical supplies, and food products (totalling 4.4 million ringgit in the first seven months of 2017).
The context to this mechanism was the February 2017 assassination of Kim Jong Nam – half-brother of North Korean leader Kim Jong Un – at Kuala Lumpur International Airport. The North Korean government is widely believed to have orchestrated the killing. This assassination triggered a major crisis in bilateral relations, with both sides thereafter preventing citizens of the other from returning home.
Additionally, this measure was imposed alongside a US-led international sanctions campaign against North Korea for its illicit nuclear weapon and ballistic missile programs. In September 2017 Malaysian Prime Minister Najib Razak visited the US White House for a meeting with President Donald Trump, after which President Trump told media that Malaysia “does not do business with North Korea any longer, and we find that to be very important.”
Impact
In the years preceding the introduction of this mechanism, Malaysia had been reported to have increased its imports from Malaysia. Its prior imports ranged from coal, to medical devices, to food products. Official trade data suggests that bilateral trade was valued at US$4 million in 2016, but unofficial illicit trade, including that done indirectly through China, is thought to have been significantly higher.
Responses
i) North Korean government and industry responses.
Pyongyang reacted with hostility to Malaysia’s initial delay on meeting North Korea’s request to return the body of Kim Jong Nam without first conducting an autopsy. Additionally, North Korea’s ambassador to Malaysia reportedly claimed that Kim Jong Nam had not been assassinated, and had instead died from natural causes.
(ii) Malaysian government and industry responses
Malaysia continued to downgrade its ties with North Korea by informally reducing staffing levels to a skeleton team at its embassy in Pyongyang, and by declining to attend events organised by North Korea.
One Malaysian trader was cited in international media reporting as saying that they had halted purchases from North Korea after the assassination due to the increasing scrutiny and attention placed on trade with Pyongyang.
Status
In March 2021 there was a complete severing of bilateral diplomatic relations, after Malaysian courts agreed to extradite North Korean citizen Mun Chol Myong, accused of money laundering, to the US. Pyongyang called the extradition “a super-large hostile act” by Kuala Lumpur.
Reference list
Allard, T., and Ananthalakshmi, A. 2017. “Once strong ties between North Korea and Malaysia rapidly unravel.” Reuters. March 7. Available at: https://www.reuters.com/ article/world/once-strong-ties-between-north-korea-and-malaysia-rapidly-unravel-idUSKBN16E1A6/
Ananthalakshmi, A. 2017. “Former friend Malaysia halts all imports from North Korea, data shows.” Reuters. October 13. Available at: https://www.reuters.com/article/world/ former-friend-malaysia-halts-all-imports-from-north-korea-data-shows-idUSKBN1CI0K6/
BBC News. 2017. “Kim Jong-nam: Body ‘arrives in Pyongyang’ in exchange deal.” March 2017. Available at: https://www.bbc.com/news/world-asia-39452470
DW. 2021. “North Korea cuts ties with Malaysia over US extradition.” March 19. Available at: https://www.dw.com/en/north-korea-cuts-diplomatic-ties-with-malaysia-over-us-extradition/a-56922874
Ellis-Petersen, H., and Haas, B. 2019. “How North Korea got away with the assassination of Kim Jong-nam.” The Guardian. April 1. Available at: https://www.theguardian.com/world/2019/apr/01/how-north-korea-got-away-with-the-assassination-of-kim-jong-nam
Latiff, R. and Ananthalakshmi, A. 2018. “Malaysia further downgrading ties with North Korea a year after airport assassination-sources.” Reuters. February 13. Available at: https://www.reuters.com/article/world/malaysia-further-downgrading-ties-with-north-korea-a-year-after-airport-assassin-idUSKBN1FX1GX/