Bangladesh, Malaysia Launch FTA Talks, Aim for Deal by 2027

Bangladesh and Malaysia have launched formal negotiations on a free trade agreement (FTA), aiming to finalise a modern, balanced and mutually beneficial deal by 2027 to boost bilateral trade, attract investment and strengthen economic ties.

The first round of negotiations began on Tuesday morning at Dhaka’s Pan Pacific Sonargaon Hotel and will continue until October 29. Commerce Secretary Sharif Uddin Ahmed Chowdhury inaugurated the three-day talks, attended by senior officials from both countries.

Malaysia’s 31-member delegation is led by chief negotiator Dr Rashidi Said, while Bangladesh’s negotiating team is headed by Commerce Ministry Additional Secretary Khadija Nazneen. At the opening session, both sides signed the terms of reference (ToR), establishing the scope and framework for the negotiations.

Addressing the event as chief guest, Sharif Uddin Ahmed Chowdhury said the longstanding friendship between Bangladesh and Malaysia, reinforced by shared cultural and religious values, had laid a strong foundation for bilateral relations. However, he noted that significant opportunities to diversify trade and investment remained unexplored despite the promising growth in economic ties.

He said the commitment to conclude a sustainable and mutually beneficial FTA by 2027 was discussed during Prime Minister Tarique Rahman’s visit to Malaysia in June, when he met Malaysian Prime Minister Anwar Ibrahim. The formal launch of negotiations marks an important step towards fulfilling that commitment, he added.

The commerce secretary highlighted the agreement’s importance as Bangladesh prepares to graduate from the least developed country (LDC) category and seeks to preserve its competitiveness in international markets.

He also pointed to Bangladesh’s strategic location at the crossroads of South and Southeast Asia, saying it offered Malaysian investors promising opportunities in the halal industry, semiconductor skills development, digital trade, logistics and joint ventures in special economic zones.

Sharif Uddin Ahmed Chowdhury further expressed appreciation for Malaysia’s support for Bangladesh’s aspiration to join the Regional Comprehensive Economic Partnership (RCEP), a major regional trade bloc.

Malaysia’s chief negotiator, Dr Rashidi Said, said the proposed FTA should be viewed as more than a tariff-reduction arrangement, describing it as a strategic initiative to establish a long-term and balanced economic partnership.

He noted that bilateral trade stood at around US$2.84 billion in 2025, expressing confidence that the agreement would open new avenues for trade expansion, industrial development and investment.

Rashidi said the negotiations could be completed 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 would provide fresh momentum to the process.

Bangladesh’s chief negotiator, Khadija Nazneen, said the agreement would improve market access in both countries, lower trade barriers and create new opportunities for investment and employment. It would also make cross-border trade more transparent, efficient and predictable, she added.

She said the negotiations would cover key areas, including trade in goods and services, rules of origin and customs procedures, while ensuring that the interests of both countries were protected.

Representatives from Bangladesh and Malaysia reaffirmed their commitment to reaching a balanced, effective and long-lasting agreement through constructive dialogue, mutual respect and flexibility.