Bangladesh and Malaysia have agreed to significantly expand bilateral cooperation across trade, investment, labour, digital technology, education, tourism, energy, defence and regional affairs, while expressing their commitment to conclude a Malaysia-Bangladesh Free Trade Agreement (MBFTA) in 2027.

The commitments were announced in a joint statement issued following the official visit of Bangladesh Prime Minister Tarique Rahman to Malaysia at the invitation of Malaysian Prime Minister Anwar Ibrahim.

The visit marked Prime Minister Tarique Rahman's first official foreign trip since assuming office on February 17, 2026. During the visit, the two leaders held bilateral talks at the Perdana Putra Complex in Putrajaya, discussed bilateral, regional and international issues, and reaffirmed their commitment to taking relations between the two countries to "new heights."

Political cooperation

The two leaders agreed that regular dialogue and high-level exchanges have strengthened cooperation in multiple areas, including labour relations, and underscored the importance of maintaining engagement on bilateral and multilateral issues.

They also agreed to resume the long-pending Joint Commission Meeting (JCM) and Bilateral Consultations (BC) at the earliest opportunity to reinforce institutional cooperation.

Trade and investment

Both leaders acknowledged that Bangladesh remains Malaysia's second-largest trading partner in South Asia and reaffirmed their commitment to strengthening two-way trade and investment.

They welcomed progress towards the commencement of negotiations on the Malaysia-Bangladesh Free Trade Agreement and expressed their commitment to concluding a comprehensive and forward-looking agreement in 2027.

The two sides also welcomed progress in establishing the Malaysia-Bangladesh Joint Business Council (JBC), which will serve as the key bilateral institutional mechanism for structured dialogue between the private sectors of both countries.

The leaders encouraged greater collaboration in telecommunications, energy, infrastructure, including roads, bridges, elevated expressways and digital public infrastructure, ports and logistics, the halal industry, agro-processing, education and skills development, the digital economy, semiconductors, smart manufacturing and other high-value industries.

They further encouraged closer cooperation among government agencies, investment promotion bodies, industry players and business communities through investment facilitation, technical cooperation, capacity building, technology transfer, talent development, business matching and strategic partnerships aimed at strengthening participation in regional and global value chains.

Halal industry

Recognising the commercial potential of the global Islamic economy, the two countries agreed to strengthen cooperation in developing Bangladesh's halal sector by leveraging Malaysia's expertise.

The leaders acknowledged the Exchange of Notes on Cooperation in the Field of Halal Ecosystem and welcomed ongoing collaboration between Malaysia's Department of Islamic Development (JAKIM) and the relevant Bangladeshi regulatory authorities.

They reaffirmed their commitment to cooperation in halal certification, regulatory framework development, capacity building, professional training, research and innovation, and institutional strengthening.

Digital economy, AI and semiconductors

The two countries agreed to expand cooperation in artificial intelligence, the digital economy, fintech, digital governance, cybersecurity and other emerging technologies through enhanced engagement among government agencies, research institutions, universities and private-sector stakeholders.

They also agreed to promote capacity building and knowledge sharing while encouraging greater Malaysian investment in Bangladesh's digital economy, including digital public infrastructure, technology parks and special economic zones.

Recognising Malaysia's established position in semiconductor packaging, testing and outsourced semiconductor assembly and test (OSAT) services, the leaders agreed to bridge that ecosystem with Bangladesh's growing IT and engineering sector.

Bangladesh proposed a bilateral talent cooperation framework to jointly develop and systematically upskill Bangladeshi engineering graduates through structured programmes, expert exchanges and the sharing of best practices to support supply chain resilience and regional cooperation in the semiconductor industry.

Labour cooperation

The leaders recognised the importance of people-to-people connectivity and welcomed the contribution of Bangladeshi workers to Malaysia's development, noting that the expatriate community plays an important role in strengthening bilateral economic and social ties.

Malaysia acknowledged Bangladesh's proposal regarding worker recruitment but noted that approvals for new foreign worker quotas would continue to be evaluated on a case-by-case basis based on verified employer requirements and sectoral ceilings.

For any approved quotas, both countries reaffirmed their commitment to ensuring that recruitment remains transparent, fair, non-discriminatory and competitive through the use of credible and qualified recruitment agencies.

The two sides also agreed to convene the Joint Working Group (JWG) to evaluate the existing Memorandum of Understanding on labour migration and lay the groundwork for a new, updated MoU designed to ensure the continued, safe and mutually beneficial migration of Bangladeshi workers to Malaysia.

Education and tourism

Recognising the presence of around 11,000 Bangladeshi students in Malaysia, the leaders agreed to strengthen cooperation through University-to-University partnerships, joint research programmes and technical and vocational education and training (TVET).

Both sides also emphasised expanding mutually recognised qualifications, joint degree programmes and flexible learning pathways while aligning academic programmes with labour market needs, with particular focus on graduate mobility and skills development.

The leaders expressed optimism about expanding tourism cooperation in conjunction with Malaysia's "Visit Malaysia 2026" and "Malaysia Year of Medical Tourism 2026" (MYMT2026) campaigns.

Malaysia welcomed Bangladeshi travellers, and both countries agreed to enhance tourism promotion and cultural exchanges.

Energy cooperation

The two countries recognised the importance of energy cooperation as a key pillar of bilateral economic relations and agreed to fully leverage the existing memorandum on cooperation in liquefied natural gas (LNG) supply, LNG infrastructure, petroleum products and related infrastructure to facilitate direct bilateral discussions between PETRONAS and PetroBangla.

Bangladesh also invited Malaysian companies to invest in oil and gas exploration in the Bay of Bengal, the extraction of untapped minerals, including coal and limestone, and renewable energy projects.

Both sides encouraged cooperation between national energy companies and private-sector stakeholders to promote long-term partnerships supporting energy security, sustainability and economic development.

Defence and security

The leaders commended the longstanding defence relationship between the two countries, supported by regular military exchanges, personnel training programmes and naval goodwill visits.

They committed to fully operationalising the existing MoU on Defence Cooperation to broaden collaboration in military science, technical expertise and defence industry partnerships and looked forward to convening the Joint Committee on Defence Cooperation (JCDC).

Both sides also agreed to strengthen defence capabilities through courses and training programmes, including mutual seat allocations at their respective National Defence Colleges and Command and Staff Colleges.

The leaders reaffirmed their commitment to supporting United Nations peacekeeping operations through joint tactical exercises, pre-deployment training collaboration and the exchange of expertise.

They also pledged to strengthen cooperation in preventing and combating terrorism and violent extremism through intelligence sharing, information exchange, capacity-building initiatives, training programmes and the sharing of best practices.

Regional and multilateral cooperation

The two leaders expressed concern over the prolonged Rohingya crisis.

Malaysia commended Bangladesh's humanitarian efforts in hosting forcibly displaced Rohingyas and reaffirmed its support for achieving a lasting solution through their safe, dignified and sustainable repatriation to Myanmar.

Bangladesh expressed appreciation for Malaysia's continued support and advocacy on the issue at bilateral, regional and international forums, including ASEAN, the Organisation of Islamic Cooperation (OIC) and the United Nations.

Prime Minister Tarique Rahman reiterated Bangladesh's desire to formalise its engagement with ASEAN by pursuing ASEAN Sectoral Dialogue Partner status, while Prime Minister Anwar Ibrahim expressed Malaysia's readiness to constructively support Dhaka's aspirations within the ASEAN framework.

Malaysia also expressed support for Bangladesh's aspiration to join the Regional Comprehensive Economic Partnership (RCEP), recognising the country's growing economic significance and strategic role in the region. Bangladesh reaffirmed its commitment to undertaking the necessary measures towards accession.

The leaders also exchanged views on the situation in the Middle East, reiterating their support for a just and lasting peace for the Palestinian people and continued dialogue and diplomatic efforts towards a durable and comprehensive peace in the region.

They further emphasised the importance of joint efforts to address traditional and non-traditional security challenges, including climate change, food security, human trafficking and transnational crime, and committed to coordinated action within international organisations such as the United Nations and the Organisation of Islamic Cooperation (OIC) to strengthen justice and compliance with international law.