Malaysia keen to sign FTA with Bangladesh to deepen economic ties

Malaysia is keen to conclude a free trade agreement (FTA) with Bangladesh in order to further deepen and accelerate the bilateral economic partnership of the two countries.

Malaysia's Foreign Affairs Ministry's deputy secretary general (bilateral affairs) Dato Norman Muhamad made the disclosure while paying a courtesy call on State Minister for Foreign Affairs of Bangladesh Shahriar Alam on Tuesday (9 May).

At the meeting, Shahriar Alam called for more diversified collaboration between the two countries in context of the fast growing economic capacity and the potential of Bangladesh, which the latter achieved under the dynamic leadership of Prime Minister Sheikh Hasina.

Bangladesh has been Malaysia's second-largest commercial partner in South Asia in recent years as a result of growing commerce between the rising economies.

Pointing to the rapidly changing socio-economic development and configuration in the South Asian and the South East Asian neighbourhood, Shahriar Alam emphasised on further deepening the regional integration and partnership to reap the optimum benefits from the ongoing Asian momentum.

Recalling the early recognition of Bangladesh following her independence by Malaysia, the state minister expressed confidence and hope on Bangladesh-Malaysia bilateral relations which has been forged over the last 50 years with strong foundation.

He emphasised on exchange of high level visits for infusing the bilateral relations with further dynamism and newer directions.

Shahriar Alam sought a more proactive role of Malaysia and the ASEAN for ensuring an expedited repatriation of the Rohingya people sheltered in Bangladesh currently on humanitarian grounds.

The state minister wished a successful bilateral meeting and expressed optimism that it would help infuse the bilateral relations with greater vigour and dynamism in the days ahead.

The Malaysian deputy secretary general arrived on Tuesday leading a five-member delegation to attend the third bilateral consultations between Bangladesh and Malaysia scheduled to be held on 10 May 2023. Foreign Secretary (Senior Secretary) Ambassador Masud Bin Momen will lead the Bangladesh delegation.

There are several active and cooperative relationships between the two countries across a wide variety of areas. Trade and investment, human resources, education, aviation, tourism, sports, the military, research and technology, drug control, human trafficking, and recently developing fields like digital commerce are some of these.

From $10.9M in FY1994–1995 to $337M in FY2021–2022, Bangladesh's exports to Malaysia have grown at an annualised rate of 12.4% over the past 25 years.

On 24 february 2022, Referring to long-standing trade and economic relations between Bangladesh and Malaysia, Commerce Minister Tipu Munshi underscored the signing of a Free Trade Agreement (FTA) to boost trade and investment.

Tipu Munshi said Bangladesh is exporting various products including readymade garments, jute products, plastics, light machinery and leather goods to Malaysia. It exported goods worth $306.57 million to Malaysia and imported goods worth $1,576.89 million in 2020-21.

He said Bangladesh also has a high demand for various food and other products like Malaysian palm oil, furniture, chocolate, and fruits. "The country can profit more if it sets up factories for these products in Bangladesh. There is a lot of skilled manpower here, so it is possible to produce all these products at low cost," he added.

The commerce minister said Bangladesh imports a huge quantity of palm oil from Malaysia.