MALAYSIA-GCC OFFICIALLY LAUNCH FREE TRADE AGREEMENT NEGOTIATIONS 

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. This historic step underscores a strong commitment to establishing a comprehensive and mutually beneficial partnership between Malaysia and the GCC.

The Joint Statement launching the negotiations was signed by YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade and Industry of Malaysia, and His Excellency Jasem Mohamed Albudaiwi, Secretary General of the GCC. 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 YAB Dato’ Sri Anwar Ibrahim, Prime Minister of Malaysia and His Highness Sheikh Sabah Al-Khaled AlHamad Al-Sabah, Crown Prince of the State of Kuwait.

“Malaysia considers the Gulf Cooperation Council to be one of its most valued trade partners in West Asia. The Malaysia–GCC Free Trade Agreement 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,” said Tengku Zafrul.

The FTA is expected to cover a wide range of areas, including trade in goods and services, investment, trade facilitation, and broader economic cooperation. Both parties have expressed a shared vision for the agreement to respond to current global trade challenges and promote resilient, inclusive, and innovation-driven growth.

In 2024, total trade between Malaysia and the GCC reached USD22.3 billion (RM101.8 billion), with key exports including electrical and electronic products, jewellery, petroleum products, palm oil & palm oil-based products and processed food. The FTA aims to expand this further by reducing tariff and non-tariff barriers, promoting business mobility, and enhancing regulatory cooperation.

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.