KUALA LUMPUR: Malaysia and the Gulf Cooperation Council (GCC) have officially launched negotiations for a Free Trade Agreement (FTA), marking a significant milestone in the deepening of economic and trade relations between the two sides.
The GCC comprises six member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia considers the GCC to be one of its most valued trade partners in West Asia.
"The Malaysia-GCC FTA is not merely a trade arrangement, it represents a strategic platform to recalibrate and enhance our bilateral relationship. In a world beset with numerous uncertainties, this is also a timely opportunity to strengthen our collaboration and work together towards inclusive and shared prosperity,” he said in a statement today.
The FTA is expected to cover a wide range of areas, including trade in goods and services, investment, trade facilitation and broader economic cooperation.
In 2024, total trade between Malaysia and the GCC reached US$22.3 billion (RM101.8 billion), with key exports including electrical and electronic products, jewellery, petroleum products, palm oil as well as palm oil-based products and processed food.
The Ministry of Investment, Trade and Industry (MITI) said the FTA aims to expand this further by reducing tariff and non-tariff barriers, promoting business mobility, and enhancing regulatory cooperation.
The ministry noted that both Malaysia and GCC had expressed a shared vision for the agreement to respond to current global trade challenges and promote resilient, inclusive and innovation-driven growth.
"The launch of the Malaysia-GCC negotiations reaffirms Malaysia’s commitment to strengthening trade ties with progressive regional blocs such as the GCC. Malaysia is optimistic about a constructive negotiation process that will deliver substantial benefits to both economies and their peoples,” it added.
Meanwhile, the joint statement launching the negotiations was signed by Tengku Zafrul and GCC Secretary General Jasem Mohamed Albudaiwi. The signing took place on the sidelines of the ASEAN-GCC Summit in Kuala Lumpur, highlighting the strategic importance of the initiative.
The exchange of the joint statement was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Kuwait Crown Prince Sheikh Al-Khaled Al-Hamad Al-Mubarak Al-Sabah. - Bernama
