Malaysia and Bangladesh target a 2027 conclusion for their free trade agreement, bolstering ties in energy, halal, and digital sectors.
KUALA LUMPUR: The Malaysia-Bangladesh Free Trade Agreement (MBFTA) is targeted to be concluded in 2027 as a mutually beneficial, comprehensive and forward-looking agreement that reflects current global trading practices.
In conjunction with the official visit of the Bangladesh Prime Minister to Malaysia, both leaders welcomed the progress made towards the commencement of negotiations on the MBFTA.
“Both leaders acknowledged the significance of bilateral trade and investment relations, noting that Bangladesh remains Malaysia’s second-largest trading partner in South Asia. The leaders expressed their commitment to further strengthening economic cooperation and facilitating two-way trade and investment,” the two countries said in a joint statement.
The statement also said the two prime ministers welcomed the progress made in the establishment of the Malaysia-Bangladesh Joint Business Council (JBC). “It will serve as the key bilateral institutional mechanism for structured dialogue and the exchange of ideas to facilitate active collaboration between the private sectors of the two countries, thereby expanding bilateral economic, trade and investment ties,” it said.
The statement said the leaders stressed the importance of enhancing trade, investment and sustainable economic partnership, and encouraged greater collaboration across priority sectors. These include telecommunications, energy, infrastructure such as roads, bridges, elevated expressways and public digital infrastructure.
It said both prime ministers further encouraged closer cooperation between relevant government agencies, investment promotion agencies, industry players and business communities of both countries through investment facilitation, technical cooperation, capacity building, technology transfer, talent development, business matching and strategic partnerships.
This, the statement said, is aimed at fostering industrial upgrading, strengthening regional and global value chain participation, and creating mutually beneficial investment opportunities for both nations. It said both leaders agreed to strengthen bilateral cooperation in support of Bangladesh’s development of its halal sector.
“They reaffirmed their commitment to further enhancing cooperation in areas including halal certification, the development of regulatory frameworks, capacity building and training of professionals, research and innovation, as well as institutional strengthening,” it said.
The statement said both leaders recognised the growing importance of digital transformation as a driver of economic growth and competitiveness, and agreed to strengthen cooperation in artificial intelligence (AI), the digital economy, fintech, digital governance, cybersecurity and other emerging technologies.
“Bangladesh proposed a bilateral talent cooperation framework under which both countries would jointly develop and systematically upskill Bangladeshi engineering graduates through structured programmes, including the exchange of experts and sharing of best practices.
“Such cooperation can contribute to supply chain resilience and regional cooperation in the semiconductor industry,” it added.
Both sides recognised the importance of strengthening cooperation in the energy sector as a key pillar of bilateral economic relations, according to the statement. “Both sides emphasised the importance of fully leveraging the agreed MoU between the Government of Bangladesh and the Government of Malaysia on cooperation in the field of liquefied natural gas (LNG) supply, LNG infrastructure, petroleum products and related infrastructure for direct bilateral LNG discussion between Petronas and PetroBangla,” it said.
The statement noted that Bangladesh has invited Malaysian companies to invest in its energy sector, including in oil and gas exploration in the Bay of Bengal, the extraction of untapped minerals such as coal and limestone, and renewable energy transition. “Both sides also encouraged cooperation between relevant national energy companies and private sector stakeholders to promote long-term, mutually beneficial partnerships that contribute to energy security, sustainability and economic development in both countries,” it said.
Bangladesh’s Prime Minister Tarique Rahman is on a two-day official visit to Malaysia from June 21 to 22.
Following the visit, both leaders also witnessed the exchange of a memorandum of understanding (MoU) on cultural cooperation, as well as two exchanges of notes (EoNs) on counter-terrorism research and investment promotion and facilitation.
