Bangladesh, Malaysia Launch Talks to Finalize FTA by 2027
Official discussions to finalize a Free Trade Agreement (FTA) between Bangladesh and Malaysia by 2027 officially commenced on Tuesday with a three-day session at the Pan Pacific Sonargaon Hotel in Dhaka. During the opening session, negotiators from both nations signed the Terms of Reference (ToR) to establish the framework for talks scheduled to run through October 29. Stakeholders anticipate that the proposed agreement will expand trade and investment, accelerate industrialization, generate job opportunities, and enhance global market competitiveness for both countries while aiding Bangladesh’s post-LDC graduation strategy.
Highlighting the economic scope, Dr. Rashidi Said, head of the 31-member Malaysian delegation, stated that bilateral trade stood at approximately $2.84 billion in 2025. He emphasized that the proposed FTA is not merely a tariff-reduction agreement, but a strategic initiative to establish a long-term, balanced economic partnership. Expressing optimism that negotiations will conclude by 2027 based on mutual understanding, he underscored the commitment of both governments to building a sustainable framework that promotes joint growth, modernizes commercial relations, and strengthens market resilience across key sectors.
Elaborating on operational benefits, Bangladesh’s chief negotiator and Additional Secretary of the Ministry of Commerce, Khadija Nazneen, noted that the FTA would ease market access, lower trade barriers, create new investment avenues, and make commercial operations more transparent and streamlined. She added that the discussions encompass critical areas including trade in goods and services, rules of origin, and customs procedures. Ms. Nazneen reaffirmed that ensuring mutual benefit alongside safeguarding the core economic interests of both nations remains the central objective throughout the structured negotiations.
Emphasizing strategic potential, Commerce Secretary Sharaf Uddin Ahmed identified substantial opportunities for joint investments in the halal industry, semiconductor skill development, digital trade, logistics, and Special Economic Zones. He noted that the initiative follows last June’s bilateral discussions between PM Tarique Rahman and Malaysian PM Anwar Ibrahim regarding a sustainable FTA by 2027. Finalizing this comprehensive agreement is expected to bolster industrial capability, attract fresh foreign direct investment, and significantly diversify bilateral trade between the two friendly Asian nations.
