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Ahmadul Kobir, Malaysia: The first round of negotiations on a proposed Free Trade Agreement (FTA) between Bangladesh and Malaysia is set to begin in Dhaka in late October, with a Malaysian delegation expected to visit Bangladesh for the talks.
Market access, trade facilities, business opportunities and other issues of mutual interest are expected to feature prominently in the first round.
Bangladesh High Commissioner to Malaysia Manjurul Karim Khan Chowdhury disclosed the development in Kuala Lumpur on Thursday. On the same day, Dr Rashidi Said, a senior official of Malaysia’s Ministry of Investment, Trade and Industry (MITI), confirmed that the first round would be held in Dhaka in late October. He is expected to lead the Malaysian negotiating team for the Malaysia-Bangladesh FTA talks.
Dr Rashidi said the initial round would focus on identifying the needs of both countries and discussing the trade facilities they could offer each other. Market access, new business opportunities and other areas of mutual interest would also be discussed.
Subsequent rounds will continue until the agreement is finalised, he said.
High Commissioner Manjurul Karim Khan Chowdhury said the two countries have set December 2027 as the target for signing the FTA. He described the first round of talks in Dhaka as an important step towards advancing the agreement.
During Prime Minister Tarique Rahman’s visit to Malaysia in June, the two countries agreed to advance negotiations on the FTA. In a joint statement issued during the visit, both sides pledged to conclude a comprehensive, forward-looking and mutually beneficial FTA by 2027.
Bangladesh and Malaysia maintain significant bilateral trade but do not currently have a comprehensive bilateral FTA. An agreement could provide preferential market access and tariff concessions while creating a broader framework for trade facilitation, investment and economic cooperation.
Malaysia External Trade Development Corporation (MATRADE) Deputy Chief Executive Officer Jai Shankar said both countries were working to facilitate trade and that Malaysia was keen to strengthen commercial relations with Bangladesh.
Trade imbalance is also expected to be an important issue in the negotiations. According to figures provided by Bangladesh Deputy High Commissioner Shahanara Monika, Bangladesh exported goods worth around US$305.55 million to Malaysia between January 2025 and July 2026, while imports from Malaysia stood at approximately US$2.26 billion during the period.
Bangladesh’s major exports to Malaysia include ready-made garments, knitwear and woven garments, leather and footwear, food and beverages, vegetables and spices. Malaysia exports mineral fuels, edible oils and fats, iron and steel, plastics, machinery and various chemical products to Bangladesh.
An FTA could provide Bangladesh with greater access to the Malaysian market and create opportunities to diversify its export basket, particularly in garments, leather and footwear, processed food, agricultural products and other potential sectors.
The agreement is also significant as Bangladesh prepares to graduate from the Least Developed Country (LDC) category. Bangladesh currently benefits from duty-free or preferential market access in various markets as an LDC. Changes to such preferences after graduation could increase the importance of bilateral and regional trade agreements in maintaining the competitiveness of Bangladeshi exports.
Reducing tariff and non-tariff barriers through an FTA could improve the competitiveness of Bangladeshi products in Malaysia. At the same time, the agreement could provide a more structured framework for imports from Malaysia, including fuel, machinery, iron and steel, industrial raw materials and other essential products.
High Commissioner Manjurul Karim Khan Chowdhury also highlighted Bangladesh’s potential in Malaysia’s halal products market.
He said Malaysia’s halal authority, JAKIM, had already issued halal certification to several Bangladeshi products, while Bangladesh’s Islamic Foundation had been recognised as a halal certification body.
However, recognition alone would not be enough to secure greater access to the international halal market, he said, stressing the need to strengthen the Islamic Foundation’s technical expertise and institutional capacity.
On Thursday, the High Commissioner visited stalls of Bangladeshi companies participating in the Malaysia International Halal Showcase (MIHAS) in Kuala Lumpur.
He held discussions with representatives of PRAN, Apex Convenience Foods Ltd, Ghorer Bazar, Paragon Agro Ltd, Talukder Agro Foods and Beverage, Nourish Foods Ltd and Biopharma Ltd on trade and business issues.
MATRADE Deputy Chief Executive Officer Jai Shankar, the organiser of MIHAS, was also present during the visit.
With formal FTA negotiations set to begin, issues including market access, tariff structures, trade in goods and services, investment and trade facilitation are expected to be discussed progressively.
The first round of talks in Dhaka in late October will mark a new phase in Bangladesh-Malaysia economic relations, with both sides targeting completion and signing of the agreement by 2027.