KUALA LUMPUR: Malaysia has set its sights on expanding trade with the oil-rich Gulf Cooperation Council (GCC) countries after signing a joint statement to initiate negotiations on a Malaysia-GCC Free Trade Agreement (MGFTA) today.
Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Aziz said the MGFTA would help reduce tariffs, non-barriers, promote business mobility and enhance regulatory cooperation, and expressed optimism that trade – which was valued at US$22 billion (USD1 = RM4.21) last year – would further expand.
“In terms of sectors, we are looking at electrical and electronics (E&E), semiconductors, halal products, (and) especially palm oil, as well as chemicals and petrochemicals, among others.
“Through these negotiations, we hope to see increased investments from the GCC into Malaysia, and enhancing access for Malaysian companies to markets in the region,” he told reporters after signing of the joint statement with GCC Secretary-General Jasem Mohamed Albudaiwi on the sidelines of the 46th ASEAN Summit and related summits at the Kuala Lumpur Convention Centre (KLCC) here.
It was witnessed by Prime Minister, Datuk Seri Anwar Ibrahim and Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah.
The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
Tengku Zafrul said the MoU marks a new beginning in cooperation between Malaysia and the Gulf nations, with several chapters outlined, which offer opportunities to focus on various key areas.
When asked if MITI had set any projections for the MGFTA, he said it would depend on the outcome of the negotiations.
“When we start the negotiations, we will see the details. From there, we can make some estimates, some projections on where we are, but at least we know we are starting from a base of US$22 billion.
“We will wait for the two negotiating teams to start and look at the line items, the tariff line items, and see what the values are,” he added.
He said the MGFTA is an extension of the Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), signed during Prime Minister Datuk Seri Anwar Ibrahim’s visit to Abu Dhabi in January.
In 2024, total trade between Malaysia and the GCC reached US$22.3 billion (RM101.81 billion), with key exports comprising E&E products, jewellery, petroleum products, palm oil, and palm oil-based products, as well as processed food.
The Malaysia-GCC FTA aims to further boost trade by reducing tariff and non-tariff barriers, promoting business mobility and enhancing regulatory cooperation.
The 46th ASEAN Summit also features two key high-level meetings — the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit.
