Discussions Begin in Dhaka
Bangladesh-Malaysia Free Trade Agreement to be operational in 2027
Collected Photo
Formal negotiations on signing a Free Trade Agreement (FTA) between Bangladesh and Malaysia have begun, with the aim of expanding bilateral trade and investment and strengthening economic partnership. The two countries have expressed hope of finalizing a modern, balanced, and mutually beneficial agreement by 2027.
On Tuesday morning, Sharaf Uddin Ahmed Chowdhury, Secretary of the Ministry of Commerce, inaugurated the first round of the three-day discussions at the Pan Pacific Sonargaon Hotel in the capital. Dr. Rashidi Said, head of Malaysia's 31-member delegation and the country's Chief Negotiator, and Khadija Nazneen, Bangladesh's Chief Negotiator and Additional Secretary of the Ministry of Commerce, along with senior officials from both countries, were present at the event.
At the inaugural session, the "Terms of Reference" (ToR) was signed to determine the outline and scope of the negotiations. The first round of Bangladesh-Malaysia FTA negotiations will continue until October 29.
In his speech as chief guest, the Commerce Secretary said that Bangladesh-Malaysia relations have been strengthened on the basis of historical friendship and shared cultural and religious values. Although the existing trade relations between the two countries are promising, the vast potential for investment and trade diversification has not yet been utilized.
He said that during Bangladesh's Prime Minister Tarique Rahman's visit to Malaysia last June, discussions were held with Malaysian Prime Minister Anwar Ibrahim on completing a sustainable and mutually beneficial free trade agreement by 2027. The institutional process of fulfilling that commitment has begun through the formal negotiations of the first round.
The Commerce Secretary said that the FTA is extremely important for addressing the challenges of graduating from Least Developed Country (LDC) status and maintaining Bangladesh's competitiveness in the international market. As a junction between South and Southeast Asia, Bangladesh is a promising market for Malaysian investors. There are opportunities for joint investment in the halal industry, skills development in the semiconductor sector, digital trade, logistics, and special economic zones. He expressed gratitude for Malaysia's support for Bangladesh's aspiration to join the Regional Comprehensive Economic Partnership (RCEP), a regional economic bloc.
Malaysia's Chief Negotiator who is the Senior Director at Malaysia's Ministry of Investment, Dr. Rashidi Said, said that the proposed FTA is not merely an agreement on tariff reduction; rather, it is a strategic initiative to establish a long-term and balanced economic partnership between the two countries. According to the data he provided, the bilateral trade between the two countries in 2025 was approximately 2.84 billion US dollars. If the agreement takes effect, new possibilities will be created for trade expansion, industrialization, and investment.He expressed hope of completing the negotiations by 2027 through mutual understanding, flexibility, and a realistic action plan. He also expressed hope that the Malaysian Prime Minister's upcoming visit to Bangladesh will further accelerate this process.Bangladesh's Chief Negotiator Khadija Nazneen said that if the FTA takes effect, market access for both countries will become easier, trade barriers will be reduced, and new opportunities for investment and employment will be created. At the same time, trade activities will become more transparent, easier, and predictable.She said that in the negotiations, emphasis is being placed on establishing consensus on important issues such as trade in goods and services, rules of origin, and customs procedures, while protecting mutual interests.Representatives of both countries reaffirmed their commitment to reaching a balanced, effective, and long-term agreement based on constructive dialogue, mutual respect, and flexibility.
