Published : 27 Oct 2026, 05:10 PM
Updated : 27 Oct 2026, 05:10 PM
Bangladesh and Malaysia have begun formal talks on a free trade agreement (FTA) to expand bilateral trade and investment and strengthen their economic partnership.
Both countries pledged to finalise a “modern, balanced and mutually beneficial” deal by 2027.
Commerce Secretary Sharif Uddin Ahmed Chowdhury outlined the goal at the opening of the three-day first round of talks in Dhaka on Tuesday, according to the ministry.
“During Prime Minister Tarique Rahman’s visit to Malaysia on June, he and Malaysian Prime Minister Anwar Ibrahim discussed concluding a sustainable and mutually beneficial free trade agreement by 2027,” the secretary said.
“The first round of formal talks marks the start of the institutional process to deliver on that commitment.”
Malaysia’s 31-member delegation is led by chief negotiator Rashidi Said, and Bangladesh’s by Commerce Ministry Additional Secretary Khadiza Nazneen, also a chief negotiator.
The two sides signed the terms of reference (ToR) at the opening session to set the framework and scope of the talks.
The secretary said the FTA is “extremely important” for tackling the challenges of graduating from least developed country (LDC) status and keeping Bangladesh competitive in international markets.
“As a meeting point of South and Southeast Asia, Bangladesh is a promising market for Malaysian investors. There are opportunities in the halal industry, skills development in semiconductors, digital trade, logistics and joint investment in special economic zones.”
Sharif Uddin thanked Malaysia for backing Bangladesh’s aspiration to join the Regional Comprehensive Economic Partnership (RCEP).
Rashidi said the proposed FTA is “not merely a tariff-cutting agreement, but a strategic initiative to build a long-term and balanced economic partnership”. According to him, bilateral trade stood at about $2.84 billion in 2025.
He hoped the FTA would open new prospects in trade expansion, industrialisation and investment.
He also expressed optimism over completing the talks by 2027 through “mutual understanding, flexibility and a realistic action plan”.
The ministry said delegates of both countries reaffirmed their commitment to reach “a balanced, effective and long-term agreement based on constructive dialogue, mutual respect and flexibility”.
The first round of talks will continue until Oct 29.
