Bangladesh and Malaysia on Monday reaffirmed their commitment to conclude a Free Trade Agreement (FTA) by 2027. They aim to build a mutually beneficial, comprehensive and forward-looking deal aligned with global trade practices.
Prime Minister Tarique Rahman and Malaysian Prime Minister Anwar Ibrahim welcomed progress in launching FTA negotiations, according to a joint statement issued by the Ministry of Foreign Affairs.
The two leaders noted the importance of strengthening trade and investment ties. They said Bangladesh is currently Malaysia’s second-largest trading partner in South Asia. They also pledged to deepen economic cooperation and expand two-way investment flows.
Business cooperation and private sector link
Both sides welcomed progress in forming the Malaysia-Bangladesh Joint Business Council (JBC). They said the platform will support structured dialogue and private sector engagement to boost trade and investment.
They also encouraged wider cooperation in key sectors, including telecommunications, energy, infrastructure such as roads, bridges and digital public systems, ports and logistics, halal industry, agro-processing, education and skills development, digital economy, semiconductors, smart manufacturing and other high-value industries.
The leaders called for stronger engagement among government agencies, investment promotion bodies and business communities. They stressed investment facilitation, technical cooperation, capacity building, technology transfer, talent development, business matching and strategic partnerships to strengthen value chains and industrial upgrading.
Halal economy cooperation
Both sides recognised the growing importance of the global Islamic economy. They also highlighted Malaysia’s experience in developing the halal ecosystem.
They agreed to expand cooperation in Bangladesh’s halal sector development. They welcomed the Exchange of Notes on halal ecosystem cooperation and ongoing coordination between Malaysia’s Department of Islamic Development (JAKIM) and relevant Bangladeshi authorities.
They reaffirmed cooperation in halal certification, regulatory framework development, capacity building, training, research, innovation and institutional strengthening.
Labour migration and workforce cooperation
Both countries noted Malaysia’s current policy on foreign labour intake, where quotas are assessed case by case based on employer needs and sector limits.
They agreed that any approved recruitment must remain transparent, fair, non-discriminatory and competitive, using only credible recruitment agencies.
They also agreed to form a Joint Working Group (JWG) to ensure safe and mutually beneficial migration of Bangladeshi workers to Malaysia. The group will review the existing MoU and prepare a new updated agreement.
Malaysia acknowledged Bangladesh’s proposal on worker recruitment and highlighted the contribution of Bangladeshi workers to its economy. Both sides also recognised the role of the expatriate community in strengthening bilateral ties.
Education and tourism cooperation
Both leaders noted that around 11,000 Bangladeshi students are currently studying in Malaysia. They said these students play an important role in academic exchange and long-term economic linkages.
They agreed to expand cooperation in education through university partnerships and joint research programmes, with a focus on technical and vocational education and training (TVET).
Both sides also supported mutual recognition of qualifications, joint degree programmes and flexible learning systems. They stressed alignment of education with labour market needs and skills development priorities.
On tourism, both leaders expressed optimism ahead of Malaysia’s “Visit Malaysia 2026” and “Malaysia Year of Medical Tourism 2026” campaigns. Malaysia welcomed Bangladeshi tourists and both sides agreed to strengthen tourism promotion and cultural exchange.
The leaders expressed confidence that deeper cooperation will strengthen long-standing bilateral ties and create new opportunities for both countries across trade, investment, skills and people-to-people exchange.
