Kuala Lumpur: Malaysia has set its sights on expanding trade with the oil-rich Gulf Cooperation Council (GCC) countries after signing a joint statement to initiate negotiations on a Malaysia-GCC Free Trade Agreement (MGFTA) today. Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Aziz announced that the MGFTA would help reduce tariffs, non-barriers, promote business mobility, and enhance regulatory cooperation, with the aim of expanding trade that was valued at US$22 billion last year.
According to BERNAMA News Agency, Tengku Zafrul highlighted key sectors of interest, including electrical and electronics, semiconductors, halal products, palm oil, as well as chemicals and petrochemicals. He expressed hope for increased investments from the GCC into Malaysia and enhanced market access for Malaysian companies in the region. The announcement was made after the signing of the joint statement with GCC Secretary-General Jasem Mohamed Albudaiwi during the 46th ASEAN Summit at the Kuala Lumpur Convention Centre.
The signing ceremony was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
Tengku Zafrul described the Memorandum of Understanding (MoU) as a new beginning in Malaysia’s cooperation with the Gulf nations, with several chapters offering opportunities to focus on key areas. He stated that projections for the MGFTA would depend on the outcome of negotiations, which will start by examining tariff line items and their values.
The MGFTA is an extension of the Malaysia-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA), signed during Prime Minister Datuk Seri Anwar Ibrahim’s visit to Abu Dhabi in January. In 2024, Malaysia’s total trade with the GCC reached US$22.3 billion, with key exports including electrical and electronics products, jewellery, petroleum products, palm oil, and processed food.
The 46th ASEAN Summit also features two significant high-level meetings: the 2nd ASEAN-Gulf Cooperation Council Summit and the inaugural ASEAN-GCC-China Summit.