Bangladesh is seeking to deepen bilateral trade relations with Malaysia while narrowing a persistent trade deficit as bilateral commerce continues to expand despite a slowdown in exports.
Official data shows Bangladesh exported goods worth $282.55 million to Malaysia in FY25, while its imports from the Southeast Asian country reached $2.29 billion, leaving a trade deficit of $2.01 billion.
Trade officials say the imbalance can be reduced by diversifying Bangladesh's export basket beyond readymade garment and increasing shipments of higher value-added products.
According to Export Promotion Bureau (EPB) data, knitwear remained Bangladesh's largest export to Malaysia in FY25, earning $113.49 million.
Agricultural products followed with exports worth $75.69 million, while woven garments fetched $65.32 million.
Other export items included petroleum by-products, plastics and rubber products, engineering goods, footwear, pharmaceuticals, chemicals, home textiles, frozen foods, and furniture.
Bangladesh's imports from Malaysia continued to be dominated by industrial raw materials and essential commodities.
Mineral products, including petroleum products and coal, accounted for the largest import category at $837.08 million.
The imports of animal and vegetable fats, mainly palm oil, totalled $143.46 million, followed by machinery and electrical equipment at $135.18 million, plastics and rubber products at $115.88 million, base metals at $83.35 million, and chemical products at $78.02 million.
Bangladesh also imported textile materials, transport equipment, paper products, and other manufactured goods.
The figures underscore Malaysia's importance as one of Bangladesh's key trading partners in Southeast Asia, although bilateral trade remains heavily skewed in Malaysia's favour.
Business leaders say Bangladesh should step up efforts to secure greater market access in Malaysia by expanding the exports of pharmaceuticals, leather and leather goods, jute products, agro-processed foods, ICT services, engineering products, and other non-traditional items alongside apparel.
They also call for stronger business-to-business engagement, increased investment cooperation, and improved trade facilitation to unlock the full potential of bilateral economic relations.
According to the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), annual bilateral trade is estimated at around $3.0 billion, with Bangladesh accounting for only about 10 per cent of the total, reflecting the wide trade imbalance.
Talking to The Financial Express, BMCCI President Md Anwar Shahid says a free trade agreement (FTA) with Malaysia would help Bangladesh narrow the trade gap.
"Malaysia has already signed 16 free trade agreements, including seven bilateral and nine regional pacts," he says.
"Our export basket for Malaysia remains very limited," he says, stressing the need to diversify exports.
Joint efforts from the government and the private sectors could explore the market potential, he also says.
Shahid marks fresh fruits and vegetables as promising products with a strong export potential, saying the BMCCI is working to facilitate higher exports of Bangladeshi agricultural products to the Malaysian market.
"Readymade garments are Bangladesh's main export, but shipments to Malaysia remain relatively small despite significant growth potential," he says.
To strengthen trade links, the chamber plans to organise a roadshow in Malaysia at the end of September, showcasing Bangladesh's export capabilities, he says.
"We will bring leading Bangladeshi exporters together with major Malaysian business chambers, including regional chambers, to explore new business opportunities," Shahid explains.
The initiative is expected to help Bangladeshi exporters tap into the opportunities in the Malaysian market and support efforts to narrow the bilateral trade gap, he adds.
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