The FTA Aims To Strengthen Economic Ties, Enhance Trade Flows, And Promote Inclusive Growth Between Malaysia And Six Gulf States.
Kuala Lumpur, 2025, Malaysia and the Gulf Cooperation Council (GCC) officially launched negotiations for a Free Trade Agreement (FTA), marking a pivotal step in expanding bilateral trade and investment ties. The GCC comprises six member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The Joint Statement for the launch was signed by YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, and His Excellency Jasem Mohamed Albudaiwi, Secretary General of the GCC. The ceremony took place on the sidelines of the ASEAN-GCC Summit in Kuala Lumpur and was witnessed by YAB Dato’ Sri Anwar Ibrahim, Prime Minister of Malaysia, and His Highness Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, Crown Prince of the State of Kuwait.
Tengku Zafrul highlighted the strategic nature of the agreement, noting that the FTA serves as more than a trade pact—it represents a long-term platform to deepen cooperation in the face of global uncertainties. The agreement is set to encompass trade in goods and services, investment, trade facilitation, and broader economic collaboration.
In 2024, trade between Malaysia and the GCC totalled USD22.3 billion (RM101.8 billion), with key Malaysian exports including electronics, jewellery, petroleum products, palm oil and processed food. The FTA is expected to further reduce tariffs and non-tariff barriers, promote business mobility, and strengthen regulatory frameworks.
Malaysia reaffirmed its commitment to engaging with dynamic regional partners and expressed optimism for a productive negotiation process that would deliver tangible benefits to both economies.
Source: Ministry of Investment, Trade and Industry (MITI) Website
