Bangladesh, Malaysia begin FTA talks, target deal by 2027

Bangladesh and Malaysia on Tuesday formally began negotiations on a Free Trade Agreement (FTA), aiming to conclude a modern, balanced and mutually beneficial deal by 2027 to expand bilateral trade and investment and strengthen economic partnership.

Commerce Secretary Sharif Uddin Ahmed Chowdhury inaugurated the three-day first round of negotiations at the Pan Pacific Sonargaon Hotel in the capital on Tuesday morning, said a press release.

Head of the 31-member Malaysian delegation and Malaysia’s Chief Negotiator Dr Rashidi Said, and Bangladesh’s Chief Negotiator and Additional Secretary to the Ministry of Commerce Khadija Nazneen, along with senior officials from both countries, attended the inaugural session.

The two sides signed the Terms of Reference (ToR) to establish the framework and scope of the negotiations.

The commerce secretary said Bangladesh-Malaysia relations had been strengthened by historical friendship and shared cultural and religious values.

Although bilateral trade relations were encouraging, he said, significant opportunities remained untapped in trade diversification and investment.

He said the issue of concluding a sustainable and mutually beneficial FTA by 2027 was discussed during Bangladesh Prime Minister Tarique Rahman’s visit to Malaysia in June this year, when he met Malaysian Prime Minister Anwar Ibrahim.

The first round of formal negotiations has now initiated the institutional process to translate that commitment into reality, he added.

The commerce secretary said an FTA was particularly important for Bangladesh to address the challenges of graduation from the Least Developed Country (LDC) category and maintain its competitiveness in international markets.

Located at the crossroads of South and Southeast Asia, Bangladesh offers promising opportunities for Malaysian investors, particularly in the halal industry, semiconductor skills development, digital trade, logistics and joint investment in special economic zones, he said.

He also expressed gratitude to Malaysia for supporting Bangladesh’s aspiration to join the Regional Comprehensive Economic Partnership (RCEP), a regional economic bloc.

Malaysia’s Chief Negotiator Dr Rashidi Said the proposed FTA was not merely an agreement to reduce tariffs but a strategic initiative to establish a long-term and balanced economic partnership between the two countries.

According to him, bilateral trade between Bangladesh and Malaysia stood at around US$2.84 billion in 2025.

The agreement, once implemented, would create new opportunities for expanding trade, promoting industrialisation and boosting investment, he said.

Dr Rashidi expressed optimism that the negotiations could be completed by 2027 through mutual understanding, flexibility and a practical roadmap.

He also hoped that the upcoming visit of the Malaysian prime minister to Bangladesh would add further momentum to the process.

Bangladesh’s Chief Negotiator Khadija Nazneen said the FTA would facilitate market access, reduce trade barriers and create new opportunities for investment and employment in both countries.

It would also make trade procedures more transparent, simpler and predictable, she added.

She said the negotiations were focusing on reaching a consensus on key issues, including trade in goods and services, rules of origin and customs procedures, while safeguarding the interests of both sides.

Representatives of both countries reaffirmed their commitment to reaching a balanced, effective and long-term agreement through constructive dialogue, mutual respect and flexibility.

The first round of Bangladesh-Malaysia FTA negotiations will continue until October 29.