Bangladesh-Malaysia FTA talks to begin next month
The first round of negotiations will focus on market access, trade opportunities, and other areas of mutual interest, with a 2027 deadline targeted for the deal.
The first round of negotiations for a Free Trade Agreement (FTA) between Bangladesh and Malaysia is set to begin in Dhaka in late October, with a delegation from Malaysia scheduled to visit Bangladesh for the talks.
Bangladesh High Commissioner to Malaysia Manjurul Karim Khan Chowdhury disclosed the information in Kuala Lumpur today (24 September) while visiting Bangladeshi companies' stalls at the Malaysia International Halal Festival (Mihas).
The companies representing Bangladesh include PRAN, Apex Convenience Foods, Ghorer Bazar, Paragon Agro Ltd, Talukder Agro Foods and Beverage, Nourish Foods, and BioPharma
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Manjurul said Bangladesh and Malaysia have set December 2027 as the target for signing the FTA. "The first round of talks next month will be an important step in advancing the agreement process."
Dr Rashidi Said, senior official at the Malaysian Ministry of Investment, Trade and Industry (MITI), also said the first round of FTA negotiations will be held in Dhaka in late October.
The talks will cover market access, business opportunities, and other issues of mutual interest, he said.
The move follows an agreement between the two countries' leaders during Prime Minister Tarique Rahman's visit to Malaysia in June to advance FTA negotiations. A joint statement set a target of concluding a comprehensive, future-oriented FTA by 2027.
Why the FTA matters
Bangladesh and Malaysia have bilateral trade but no comprehensive FTA, leaving businesses without preferential market access, tariff concessions, and other trade facilitation benefits.
According to Malaysia's trade promotion agency MATRADE, FTAs provide preferential market access and create opportunities to expand trade, investment, services, and economic cooperation.
MATRADE Deputy Chief Executive Officer S Jai Shankar said the two countries are working to facilitate trade, with Malaysia keen to deepen bilateral trade ties with Bangladesh.
The issue is increasingly important as Bangladesh prepares to graduate from the least developed country (LDC) category. As LDC trade preferences decline or change after graduation, bilateral and regional trade agreements will become more important for maintaining exporters' competitiveness.
An FTA could help boost Bangladesh's exports of garments, leather and footwear, food, agricultural products, and other goods to Malaysia. It could also provide a structured framework for imports from Malaysia, including fuel, machinery, iron, and steel.
Wide trade deficit
Bangladesh currently has a substantial trade deficit with Malaysia.
According to Bangladesh Bank data, Bangladesh exported $293.51 million in goods to Malaysia in FY2023-24, against imports of over $2.6 billion, resulting in a deficit of around $2.31 billion.
The trend continued from January 2025 to July 2026, with Bangladesh exporting around $305.55 million and importing around $2.26 billion from Malaysia.
Bangladesh's major exports to Malaysia include readymade garments, knitwear and woven garments, leather and footwear, food and beverages, vegetables, and spices.
Major imports from Malaysia include mineral fuels, edible oils, iron and steel, plastics, machinery, and chemicals.
Regarding the halal market, High Commissioner Manjurul said several Bangladeshi products have received halal certification from Malaysia's halal authority Jabatan Kemajuan Islam (Jakim).
He said Malaysia has also recognised Bangladesh's Islamic Foundation to issue halal certificates, but recognition alone is not enough, and the foundation needs to further develop its technical expertise.
