Published: 12:24 AM, 29 October 2026
Bangladesh, Malaysia launch FTA talks, target deal by 2027
Bangladesh and Malaysia have formally launched negotiations on a free trade agreement (FTA), aiming to conclude a modern, balanced and mutually beneficial deal by 2027 to expand bilateral trade, attract investment and deepen economic cooperation.
The first round of negotiations began on Tuesday morning at the Pan Pacific Sonargaon Hotel in Dhaka and will continue until October 29. Commerce Secretary Sharif Uddin Ahmed Chowdhury inaugurated the three-day talks, attended by senior officials from both countries.
The negotiations mark a significant step towards institutionalising economic ties between the two countries as Bangladesh prepares to graduate from the least developed country (LDC) category and seeks to preserve its competitiveness in international markets.
A 31-member Malaysian 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, the two 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 Bangladesh and Malaysia shared longstanding friendship, historical connections and cultural and religious values that provided a strong foundation for expanding economic cooperation.
Despite promising bilateral trade relations, considerable opportunities for diversifying trade and investment remained untapped, he said, expressing hope that the proposed FTA would help both countries realise their economic potential.
The commerce secretary said the commitment to conclude a sustainable and mutually beneficial agreement by 2027 had been discussed during Prime Minister Tarique Rahman's visit to Malaysia in June, when he met Malaysian Prime Minister Anwar Ibrahim.
The formal negotiations have now initiated the institutional process to translate that political commitment into a comprehensive trade agreement, he added.
LDC graduation adds urgency
For Bangladesh, the proposed agreement assumes particular importance as the country prepares for its graduation from the LDC category, which is expected to bring changes to the trade preferences it currently enjoys in international markets.
A well-negotiated FTA could help Bangladeshi exporters secure more predictable market access, diversify export destinations and strengthen the country's position in regional and global supply chains.
The agreement could also create opportunities to expand trade beyond traditional products by encouraging cooperation in services, technology, industrial development and investment.
Highlighting Bangladesh's geographical position at the crossroads of South and Southeast Asia, the commerce secretary identified the halal industry, semiconductor skills development, digital trade, logistics and joint investment in special economic zones as promising areas for Malaysian investors.
He also expressed gratitude for Malaysia's support for Bangladesh's aspiration to join the Regional Comprehensive Economic Partnership (RCEP), a major regional trade agreement involving economies across the Asia-Pacific.
Malaysia sees strategic partnership beyond tariffs
Malaysia's chief negotiator, Dr Rashidi Said, said the proposed FTA should not be viewed merely as an instrument for reducing tariffs but as a strategic initiative to build a sustainable, balanced and long-term economic partnership.
Bilateral trade between the two countries reached approximately US$2.84 billion in 2025, he said, expressing optimism that the agreement would open new avenues for trade expansion, industrialisation 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.
**Negotiations to cover key trade issues**
Bangladesh's chief negotiator, Khadija Nazneen, said the proposed agreement would facilitate market access, reduce trade barriers and generate new opportunities for investment and employment in both countries.
She said an FTA could make cross-border trade more transparent, straightforward and predictable, helping businesses plan their operations and investment decisions with greater confidence.
The negotiations will cover key areas, including trade in goods and services, rules of origin and customs procedures. Both sides will seek to reconcile their respective economic priorities while protecting domestic interests and ensuring that the eventual agreement delivers balanced benefits.
Rules of origin will be particularly important in determining which products qualify for preferential tariff treatment, while efficient customs procedures could help reduce administrative delays and trade costs.
Representatives from Bangladesh and Malaysia reaffirmed their commitment to pursuing an effective and forward-looking agreement through constructive dialogue, mutual respect and flexibility.
As the first round progresses, the challenge will be to translate the broad political commitment into concrete provisions that benefit exporters, investors and businesses in both countries.
The proposed FTA is expected to serve as a framework for deeper economic engagement, with its ultimate success depending on the quality of the negotiated terms, the balance of market access and the ability of businesses to capitalise on the opportunities created.
