Bangladesh, Malaysia begin FTA talks, eye 2027 deal

Bangladesh and Malaysia formally began negotiations on a free trade agreement (FTA), aiming to conclude a mutually beneficial deal by 2027 to expand bilateral trade, attract investment and strengthen economic ties.
Commerce Secretary Sharaf Uddin Ahmed Chowdhury inaugurated the three-day first round of negotiations at the Pan Pacific Sonargaon Hotel in Dhaka on Tuesday, according to a Commerce Ministry press release.
Malaysia’s Chief Negotiator Dr Rashidi Said, who is leading a 31-member delegation, and Bangladesh’s Chief Negotiator and Commerce Ministry Additional Secretary Khadija Nazneen attended the inaugural session alongside senior officials from both countries.
The two sides signed the Terms of Reference (ToR), establishing the framework and scope of the negotiations.
Speaking at the event, the commerce secretary said Bangladesh and Malaysia shared longstanding historical, cultural and religious ties, but significant opportunities remained untapped in trade diversification and investment.
He recalled that the proposed FTA was discussed during Prime Minister Tarique Rahman’s visit to Malaysia in June this year, when he met Malaysian Prime Minister Anwar Ibrahim.
The launch of formal negotiations marked the beginning of efforts to translate that commitment into an agreement, he said.
Sharaf Uddin said securing an FTA was particularly important for Bangladesh as it prepared for graduation from the least developed country (LDC) category and sought to maintain its competitiveness in international markets.
He highlighted investment opportunities for Malaysian businesses in Bangladesh’s halal industry, semiconductor skills development, digital trade, logistics and special economic zones.
Bangladesh’s strategic location between South and Southeast Asia also offered opportunities for deeper regional economic integration, he added.
The commerce secretary thanked Malaysia for supporting Bangladesh’s aspiration to join the Regional Comprehensive Economic Partnership (RCEP).
Malaysian Chief Negotiator Dr Rashidi Said said the proposed FTA would go beyond tariff reductions to establish a long-term, balanced economic partnership.
He said bilateral trade between the two countries stood at around $2.84 billion in 2025, highlighting the potential for further expansion.
Once implemented, the agreement could create new opportunities for trade, industrialisation and investment, he said.
Rashidi expressed optimism that negotiations could be completed by 2027 through mutual understanding, flexibility and a practical roadmap.
He also hoped that the Malaysian prime minister’s upcoming visit to Bangladesh would provide further momentum to the negotiations.
Bangladesh’s Chief Negotiator Khadija Nazneen said the proposed FTA would improve market access, reduce trade barriers and create new investment and employment opportunities in both countries.
It would also make trade procedures simpler, more transparent and predictable, she said.
Nazneen said negotiations would focus on key areas, including trade in goods and services, rules of origin and customs procedures, while protecting the interests of both countries.
Representatives of both sides reaffirmed their commitment to reaching a balanced and sustainable agreement through constructive dialogue and mutual flexibility.
The first round of negotiations will continue until 29 October.