Malaysia, GCC Launch FTA Negotiations: A New Era of Economic Cooperation

Malaysia and the Gulf Cooperation Council (GCC) took a major step towards strengthening economic ties on May 27, 2025, by officially launching negotiations for a comprehensive free trade agreement (FTA). The momentous occasion unfolded during the ASEAN-GCC Summit, held at the Kuala Lumpur Convention Centre, and was personally witnessed by Malaysian Prime Minister Anwar Ibrahim. The agreement, signed by Tengku Zafrul Abdul Aziz, Malaysia's Minister of Investment, Trade and Industry, and Jassim Mohammed Albudaiwi, the Secretary-General of the GCC, marks a pivotal moment in bilateral relations. "This FTA will be a strategic platform to help boost our two-way relationship," stated Tengku Zafrul, highlighting the agreement's potential to enhance trade and investment flows. The FTA is anticipated to encompass a wide range of sectors, including services, investment, and trade facilitation, aiming to reduce both tariff and non-tariff barriers. In 2024 alone, bilateral trade between Malaysia and the GCC reached a substantial $22.3 billion USD, demonstrating the existing economic significance of this partnership. This initiative promises to unlock further economic growth and cooperation for both nations, setting the stage for a more prosperous future.