Bangladesh and Malaysia started their first round of negotiations for a proposed free trade agreement in Dhaka on October 27, 2026. A 30-member delegation from Malaysia arrived in the country to participate in the three-day discussions.
The talks take place at the Pan Pacific Sonargaon Dhaka and run until October 29, 2026, according to Kamal Hossain, Public Relations Officer at the Ministry of Commerce. Textile Today first reported the start of these trade talks.
The background
Bangladesh is currently pursuing trade agreements with eight to 10 nations to protect its export opportunities ahead of its scheduled least developed country graduation on November 24, 2026. The country previously signed an Economic Partnership Agreement with Japan in February 2026 and a Comprehensive Economic Partnership Agreement with South Korea, though both pacts await parliamentary ratification in the respective countries.
Bilateral trade between Bangladesh and Malaysia reached approximately $2.84 billion in 2025, according to data from Malaysia’s Ministry of Foreign Affairs. Malaysian exports to Bangladesh totaled about $2.35 billion, while Bangladeshi shipments to Malaysia stood at roughly $500 million.
This trade deficit highlights the potential for Bangladesh to increase its exports to the Malaysian market through better tariff terms. The textile and apparel sector stands to gain if the final trade pact delivers lower tariffs and broader market access.
What it means
Exporters and businesses in the textile sector should monitor the final terms of the agreement to see how tariff reductions might impact their shipments to Malaysia. Stakeholders can watch the upcoming negotiation outcomes to understand how trade diversification efforts will shape export opportunities after least developed country graduation.