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Ahmadul Kobir, Malaysia: The first round of negotiations on a proposed Free Trade Agreement (FTA) between Bangladesh and Malaysia will begin in Dhaka on Tuesday and continue until Thursday, with the three-day talks expected to pave the way for expanded bilateral trade, improved market access and closer economic cooperation.
According to sources at the Bangladesh High Commission in Malaysia, a 30-member Malaysian delegation led by Dr Rashidi Said, a senior official of the Ministry of Investment, Trade and Industry (MITI), has arrived in Bangladesh to participate in the negotiations.
Khadija Naznin, additional secretary of the World Trade Organization (WTO) Wing at Bangladesh’s Ministry of Commerce, will lead the Bangladeshi negotiating team, while Mustafizur Rahman, joint secretary of the same wing, will serve as deputy chief negotiator.
The first round of talks will be inaugurated by Bangladesh’s commerce secretary at Hotel Sonargaon in Dhaka on Tuesday. Both countries have already exchanged draft proposals, which are expected to be discussed in detail during the negotiations.
The proposed FTA has received attention at the highest levels of both governments. During Bangladesh Prime Minister Tarique Rahman’s visit to Malaysia in June, the two sides agreed to advance discussions on the agreement. Both countries aim to conclude the deal by 2027.
The negotiations are expected to cover bilateral trade requirements, tariffs and other barriers affecting imports and exports, market access and reciprocal trade benefits. The two sides will also discuss the concessions and facilities each country could offer the other.
Particular attention may be given to opportunities to increase Bangladesh’s exports of ready-made garments and halal products to Malaysia, develop markets for new products and expand commercial opportunities for Bangladeshi businesses. Employment-related issues concerning Bangladeshi workers in Malaysia may also feature in the discussions.
The balance of trade, product-specific export and import figures, and conditions for accessing each other’s markets are likely to emerge as key issues during the negotiations.
According to information provided by relevant sources, Bangladesh exported approximately US$3.05 billion worth of goods to Malaysia between January 2025 and July 2026, while imports from Malaysia to Bangladesh during the same period were reported at approximately US$220 million.
However, the substantial gap between the reported export and import figures requires verification of the reporting period, product classifications and data sources. A comprehensive assessment of bilateral trade flows, tariff structures and market-access conditions will be important in determining the scope of a potential agreement.
Experts believe an effective FTA could expand bilateral commerce while creating new opportunities for investment and exports. However, the extent of the benefits will depend on the terms negotiated, the products covered, the tariff concessions granted and the ability of both countries to protect their respective economic interests.