Bangladesh, Malaysia Target Finalising FTA by 2027

Bangladesh and Malaysia have agreed to accelerate negotiations on a bilateral free trade agreement (FTA), aiming to finalise the deal by 2027, as both countries move to strengthen cooperation across trade, investment, labour, energy, digital technology and defence.

The commitment was outlined in a joint statement issued after Prime Minister Tarique Rahman’s official visit to Malaysia on Sunday at the invitation of Malaysian Prime Minister Anwar Ibrahim, according to a press release.

The visit marked Tarique’s first official overseas trip since assuming office on 17 February. He received an official welcome at the Perdana Putra Complex in Putrajaya before holding bilateral talks with his Malaysian counterpart.

During the meeting, the two leaders reaffirmed their determination to elevate Bangladesh-Malaysia ties and agreed to revive the long-delayed Joint Commission Meeting and bilateral consultations at the earliest opportunity.

Acknowledging Bangladesh as Malaysia’s second-largest trading partner in South Asia, the leaders pledged to expand bilateral trade and investment. They also welcomed progress towards establishing a Malaysia-Bangladesh Joint Business Council to promote structured engagement between the private sectors of both countries.

Priority areas identified for future cooperation include telecommunications, energy, infrastructure, ports and logistics, the halal industry, agro-processing, education, skills development, the digital economy, semiconductor manufacturing and smart industries.

The two sides agreed to deepen collaboration in the halal sector through cooperation on certification, regulatory standards, professional training, research and institutional capacity building.

In the digital sphere, Bangladesh and Malaysia committed to enhancing cooperation in artificial intelligence, fintech, digital governance, cybersecurity and other emerging technologies. Malaysia was encouraged to increase investment in Bangladesh’s digital public infrastructure, technology parks and special economic zones.

The joint statement noted that Malaysia’s expertise in semiconductor packaging, testing and outsourced semiconductor assembly and test services could complement Bangladesh’s expanding information technology and engineering sectors.

Bangladesh also proposed a talent development framework aimed at equipping engineering graduates with advanced skills through structured training programmes, expert exchanges and knowledge-sharing initiatives.

On labour migration, Malaysia acknowledged Bangladesh’s proposal regarding worker recruitment but reiterated that approvals for new foreign worker quotas would continue to be assessed on a case-by-case basis, taking into account verified employer demand and sector-specific requirements.

The two countries agreed to convene a Joint Working Group to review the existing labour memorandum of understanding and draft a new agreement to facilitate safe, orderly and mutually beneficial migration of Bangladeshi workers to Malaysia.

The leaders further noted that around 11,000 Bangladeshi students are currently studying in Malaysia and agreed to broaden cooperation through university partnerships, joint research initiatives and technical and vocational education programmes.

In the energy sector, Bangladesh invited Malaysian companies to invest in oil and gas exploration in the Bay of Bengal, mineral extraction and renewable energy projects. Both sides also emphasised the need to implement existing cooperation frameworks covering liquefied natural gas (LNG) supply, LNG infrastructure and petroleum products.

The two leaders agreed to operationalise the memorandum of understanding on defence cooperation and expand collaboration in military science, training, technical expertise and defence industry partnerships.

They also pledged to strengthen cooperation in counterterrorism efforts, intelligence-sharing and combating violent extremism. On regional issues, Malaysia reiterated its support for Bangladesh in addressing the Rohingya crisis and backed the safe, dignified and sustainable repatriation of displaced Rohingyas to Myanmar.

Malaysia additionally expressed its readiness to support Bangladesh’s bid for ASEAN Sectoral Dialogue Partner status and endorsed Dhaka’s interest in joining the Regional Comprehensive Economic Partnership (RCEP).

The leaders also exchanged views on developments in the Middle East and reaffirmed their support for a just and lasting peace for the Palestinian people.