FTA talks between Bangladesh, Malaysia begin; aim to complete deal by 2027

By the Editorial Team · Wednesday, October 28, 2026

Bangladesh and Malaysia began formal talks on a free trade agreement in Dhaka on October 27, 2026, aiming to finalize the deal by 2027. The FTA is crucial for Bangladesh’s post-LDC transition to secure better market access and for both countries to boost trade, investment, and economic cooperation.

Bangladesh and Malaysia commenced formal negotiations on a free trade agreement (FTA) on October 27, 2026, with the goal of concluding a comprehensive and mutually beneficial deal by 2027. The opening session took place at the Pan Pacific Sonargaon Hotel in Dhaka and marked the first round of talks between the two countries.

The Bangladeshi delegation was led by Khadiza Nazneen, additional secretary (WTO) at the commerce ministry, while the Malaysian team was headed by Dr. Rashidi Said, senior director of the Asia-Pacific Economic Cooperation and Regional Grouping Division at the Ministry of Investment, Trade and Industry (MITI). Alongside them, a 31-member Malaysian delegation participated. The negotiations are scheduled to last three days.

During the inaugural session, both parties signed the Terms of Reference (ToR), which set the framework and scope for the upcoming discussions. Bangladesh’s Commerce Secretary Sharf Uddin Ahmed Choudhury highlighted the strong historical ties between the two countries, noting their longstanding friendship and shared cultural and religious values. He expressed optimism about the potential for expanding bilateral trade and investment, despite the existing promising levels of economic engagement.

The initiative carries particular significance for Bangladesh as it seeks to secure easier market access in the post-graduation period following its transition from a least developed country (LDC). Officials from both sides view the FTA as a tool to enhance trade diversification, increase exports, and boost investment flows.

While details of the negotiation agenda remain focused on modernizing trade relations, both countries aim to arrive at a balanced agreement that addresses the interests of exporters and investors in each nation. The talks will explore areas spanning tariff reductions, investment facilitation, and regulatory cooperation to strengthen economic ties.

The FTA negotiations underscore Bangladesh's broader strategy to integrate more deeply with regional markets and ensure sustainable economic growth through enhanced trade partnerships. Malaysia, for its part, looks to capitalize on emerging opportunities in Bangladesh's growing economy.

The three-day negotiation session is expected to lay the groundwork for subsequent rounds, with both parties committed to concluding the agreement by 2027. Stakeholders regard the FTA as a timely and strategic effort to enhance bilateral trade and foster stronger economic cooperation between the two countries.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.