Bangladesh-Malaysia Free Trade Talks Open in Dhaka, Target to Finalise Deal by 2027

Formal talks on a free trade agreement (FTA) to increase bilateral trade and investment between Bangladesh and Malaysia have begun. Representatives of the two countries opened the first round of talks in Dhaka with the target of finalising the agreement by 2027.

Commerce Secretary Sharaf Uddin Ahmad Chowdhury inaugurated the first round at the Pan Pacific Sonargaon Hotel in the capital on Tuesday (27 October). At the inaugural session, representatives of the two countries signed Terms of Reference (TOR) to set the outline and scope of the negotiations.

The first round will continue until 29 October. Over the three days, the two sides will discuss ways to protect each other's interests on issues including trade in goods and services, rules of origin and customs procedures.

Present at the inaugural event were Dr Rashidi Said, head of Malaysia's 31-member delegation and the country's chief negotiator, and Bangladesh's chief negotiator and Commerce Ministry Additional Secretary Khadija Nazneen, along with senior officials of both countries.

In his inaugural speech, Commerce Secretary Sharaf Uddin Ahmad Chowdhury said relations between the two countries have been strengthened on the basis of historical friendship and shared cultural and religious values. He noted that although existing trade relations are promising, there is further scope to diversify trade and increase investment.

He said that during Bangladesh Prime Minister Tarique Rahman's visit to Malaysia last June, there were discussions with Malaysian Prime Minister Anwar Ibrahim on completing a sustainable and mutually beneficial FTA by 2027. With the start of formal talks in Dhaka, the institutional process to implement that target has now begun.

The commerce secretary said an FTA can play an important role in meeting the possible challenges after graduation from the list of least developed countries (LDCs) and in maintaining Bangladesh's competitiveness in international markets.

He also said Bangladesh, as a connecting point between South and Southeast Asia, is a promising market for Malaysian investors. He mentioned opportunities for joint investment by the two countries in the halal industry, skills development in the semiconductor sector, digital trade, logistics and special economic zones. He also thanked Malaysia for its support for Bangladesh's aspiration to join the Regional Comprehensive Economic Partnership (RCEP).

Malaysia's chief negotiator Dr Rashidi Said said the proposed FTA is not merely an agreement to reduce tariffs; it is a strategic initiative to establish a long-term and balanced economic partnership between the two countries.

According to figures given by Rashidi Said, bilateral trade between Bangladesh and Malaysia was about US$2.84 billion in 2025. He said Malaysia is hopeful of concluding the talks by 2027 on the basis of mutual understanding, flexibility and a realistic work plan, and expressed hope that the Malaysian prime minister's upcoming visit to Bangladesh will give the process further momentum.

Bangladesh's chief negotiator Khadija Nazneen said that if the FTA takes effect, market access in both countries will become easier, trade barriers will fall and new opportunities for investment and employment will be created. She also said trade activities will become more transparent, easier and more predictable.

Representatives of the two countries reiterated their commitment to concluding a balanced and effective agreement on the basis of constructive discussion, mutual respect and flexibility.