Malaysia and Bangladesh have agreed to strengthen cooperation across trade, investment, semiconductors, the halal industry and labour mobility as both countries seek to deepen economic ties and unlock new growth opportunities.
The commitment was reached during bilateral discussions between Prime Minister Datuk Seri Anwar Ibrahim and Bangladesh Chief Adviser Tarique Rahman, with both leaders reaffirming their commitment to expanding two-way trade and investment.
Bangladesh remains Malaysia’s second-largest trading partner in South Asia, with both sides welcoming progress towards negotiations on the Malaysia-Bangladesh Free Trade Agreement (MBFTA), which they aim to conclude in 2027.
The leaders also welcomed progress in establishing the Malaysia-Bangladesh Joint Business Council (JBC), which will serve as a platform for structured engagement between the private sectors of both countries.
Both nations identified telecommunications, energy, infrastructure, ports and logistics, halal industries, agro-processing, education, digital economy, semiconductors and smart manufacturing as key areas for future collaboration.
In the halal sector, Malaysia and Bangladesh agreed to strengthen cooperation to support the development of Bangladesh’s halal ecosystem, leveraging Malaysia’s expertise in halal certification, regulatory frameworks, capacity building, research and innovation.
The two countries also pledged closer collaboration in artificial intelligence (AI), fintech, cybersecurity and digital governance, while encouraging greater Malaysian investment in Bangladesh’s digital economy, including technology parks and special economic zones.
On semiconductors, the leaders agreed to link Malaysia’s established semiconductor packaging and testing ecosystem with Bangladesh’s growing IT and engineering talent pool. Bangladesh proposed a bilateral framework to jointly train and upskill engineering graduates through knowledge-sharing programmes and expert exchanges.
The initiative is expected to support supply chain resilience and strengthen regional cooperation in the semiconductor industry.
On labour matters, Malaysia acknowledged Bangladesh’s proposal on worker recruitment while reiterating that new foreign worker quotas will continue to be assessed on a case-by-case basis based on verified industry needs.
Both countries also agreed to convene a Joint Working Group (JWG) to review the existing labour memorandum of understanding and begin drafting a new agreement to ensure the continued, safe and mutually beneficial migration of Bangladeshi workers to Malaysia.
The leaders reaffirmed their commitment to ensuring recruitment processes remain transparent, fair and competitive, involving only credible and qualified recruitment agencies.
