Malaysia and Egypt have agreed to strengthen bilateral trade and investment cooperation in key sectors, including semiconductors, renewable energy, digital technology, agriculture and manufacturing, as both countries seek to unlock new economic opportunities and expand access to regional markets.
The agreement was reached during bilateral talks between Prime Minister Datuk Seri Anwar Ibrahim and Egyptian President Abdel Fattah Al Sisi on Saturday (Oct 10), held in conjunction with the Egyptian leader’s first state visit to Malaysia from Oct 9 to 10, 2026.
In a joint statement, both leaders acknowledged the significant untapped potential in bilateral economic relations and agreed to encourage greater business-led cooperation in agriculture, the halal industry, education, technical and vocational education and training (TVET), digital transformation, renewable energy, infrastructure development, automotive manufacturing and semiconductors.
The two countries also recognised their strategic geographical positions as potential gateways for businesses seeking to expand into ASEAN, Arab, African and European markets.
The discussions build on the elevation of Malaysia-Egypt relations to a Strategic Partnership on Nov 10, 2024, in Cairo, reflecting both governments’ commitment to broadening economic, political and diplomatic engagement.
Both leaders agreed to convene the Second Joint Commission Meeting and Second Bilateral Consultations at the earliest opportunity to advance cooperation under the strategic partnership.
Malaysia and Egypt also identified improved air connectivity as an important enabler of closer economic relations.
Both leaders encouraged their respective national airlines to explore opportunities for enhanced cooperation, recognising that improved connectivity could facilitate tourism, business travel, trade and cultural exchanges.
They also reaffirmed their commitment to expanding educational cooperation, including scholarships, student exchanges, collaborative research and technical and scientific programmes.
Malaysia will continue supporting capacity-building initiatives through the Malaysian Technical Cooperation Programme (MTCP), alongside stronger collaboration in higher education, religious studies and Arabic language programmes.
The renewed push for economic cooperation comes amid stronger trade flows between the two countries.
According to figures reported by Bernama, bilateral trade increased 74.7% to RM3.49 billion in the first eight months of 2026.
In 2025, Egypt was Malaysia’s seventh-largest trading partner in Africa, with total bilateral trade valued at RM3.08 billion, comprising RM2.55 billion in Malaysian exports and RM530 million in imports.
Malaysia and Egypt established diplomatic relations on Nov 10, 1959, and have since expanded cooperation across trade, education, defence and international diplomacy.
On regional cooperation, Malaysia expressed support for Egypt’s proposal to become an ASEAN Sectoral Dialogue Partner, building on Egypt’s accession to the Treaty of Amity and Cooperation in Southeast Asia in 2016.
Both countries also expressed interest in strengthening cooperation between ASEAN and the African Union, potentially creating new opportunities for cross-regional trade, investment and diplomatic engagement.
Separately, Malaysia reiterated its aspiration to become a full member of BRICS and expressed hope of working closely with Egypt and other member countries to advance that objective.
Both leaders reaffirmed their commitment to cooperation through international platforms, including the United Nations, Organisation of Islamic Cooperation, Non-Aligned Movement, Group of 77 and D-8 Organisation for Economic Cooperation.
The leaders also discussed regional security developments, including escalating tensions in West Asia and the potential implications for international trade.
Malaysia and Egypt reaffirmed their commitment to promoting peace and stability in the Gulf region, particularly the Strait of Hormuz, while emphasising the importance of freedom of navigation under international law.
They also highlighted the need to protect international shipping routes in the Red Sea and Gulf of Aden, stressing respect for the sovereignty of coastal states and the uninterrupted movement of international trade.
On Palestine, both leaders reiterated their support for a two-state solution based on pre-1967 borders, with East Jerusalem as the capital of an independent Palestinian state.
They called for the consolidation of the ceasefire in Gaza, unrestricted humanitarian assistance and the restoration of Palestinian Authority administration in the territory.
Anwar also expressed Malaysia’s appreciation for Egypt’s role in facilitating humanitarian assistance to Palestinians in Gaza.
The two countries further reaffirmed support for the sovereignty and territorial integrity of Lebanon, Syria and countries in the Horn of Africa, while calling for peaceful resolutions to regional disputes.
The state visit concluded with President Al Sisi extending an invitation to Sultan Ibrahim to visit Egypt, reflecting the two countries’ intention to maintain high-level engagement and further strengthen their strategic partnership.
