Senior Correspondent, Dhaka:
Bangladesh and Malaysia have launched formal negotiations for a free trade agreement (FTA), targeting a deal by 2027 to expand bilateral trade, attract investment, and strengthen economic ties amid Bangladesh’s preparations for graduation from the least developed country (LDC) category.
The first round of negotiations began at the Pan Pacific Sonargaon Hotel in Dhaka on Tuesday and will continue until October 29. Commerce Secretary Sharif Uddin Ahmed Chowdhury inaugurated the talks, where both sides signed the terms of reference outlining the negotiation framework.
The proposed agreement follows discussions during Prime Minister Tarique Rahman’s visit to Malaysia in June, when he met Malaysian Prime Minister Anwar Ibrahim. The negotiations seek to translate that political commitment into a structured economic partnership.
Bilateral trade reached approximately US$2.84 billion in 2025, according to Malaysia’s chief negotiator, Dr Rashidi Said. However, expanding trade will require both countries to identify complementary industries, reduce barriers, and improve market access beyond existing trade patterns.
For Bangladesh, the agreement could support export diversification and help sustain competitiveness as LDC-related trade preferences gradually change. Potential cooperation includes the halal industry, digital trade, logistics, semiconductor skills development, and investment in special economic zones.
However, the benefits will depend on the terms negotiated, including tariff concessions, rules of origin, customs procedures, and services trade. A balanced agreement must also account for domestic industries that could face stronger competition.
Bangladesh’s chief negotiator, Khadija Nazneen, said the FTA could improve trade transparency, facilitate investment, and create employment opportunities.
The 2027 target provides a negotiating timeline, but effective implementation and equitable market access will ultimately determine whether the agreement delivers lasting economic gains for both countries.
