Malaysia, Bangladesh Agree to Expedite FTA Talks, Expand Strategic Cooperation

Malaysia and Bangladesh have agreed to accelerate negotiations for a Free Trade Agreement (FTA) and broaden cooperation across strategic sectors, including semiconductors, artificial intelligence (AI), the digital economy, and energy. This move aims to enhance bilateral economic relations beyond their traditional focus on trade and investment.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim stated that both countries are committed to strengthening their relationship through comprehensive cooperation. He highlighted the agreement to expedite the FTA and collaborate across all fields, emphasizing that future challenges and opportunities lie in areas like new science and technology, semiconductors, and AI.

The exchange of Memoranda of Understanding (MoUs) also encompasses cultural cooperation, research on counter-terrorism, and investment promotion. Anwar noted that while Bangladesh possesses significant economic potential, bilateral trade and investment remain moderate. He stressed the need to increase these exchanges, focusing on sectors beyond agriculture, such as semiconductors, the digital economy, energy, and high-tech manufacturing.

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We need to strengthen bilateral relations and this has been discussed between the Ministry of Foreign Affairs, Ministry of Home Affairs and relevant ministries in Bangladesh to meet this challenge through the speedy implementation of the FTA and comprehensive cooperation in all fields.

Both nations are arranging meetings between relevant agencies and companies to explore new collaborative opportunities, including potential partnerships between Petronas and Petrobangla in the liquefied natural gas (LNG) sector. Cooperation in the halal industry, education, culture, and tourism is also expected to generate more economic prospects for both countries.

Bangladesh Prime Minister Tarique Rahman expressed readiness to bolster bilateral ties, including expanding cooperation through existing mechanisms and the Malaysia-Bangladesh FTA. He affirmed that both countries will continue to enhance engagement through joint commission meetings and regular consultations between foreign ministers to strengthen diplomatic and economic ties.

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Cooperation is not only focused on trade, but also involves various strategic sectors including investment, technology, halal industry, education and development.