Latest news with #MGFTA
The Sun
29-06-2025
- Business
- The Sun
GCC free trade talks signal strategic economic realignment
MALAYSIA'S move to sign the Free Trade Agreement (MGFTA) negotiations with the Gulf Cooperation Council (GCC) marks a pivotal step in expanding its economic reach beyond traditional partners. With GCC members – including Saudi Arabia, the UAE, Qatar, and others representing a collective GDP of over US$2 trillion (RM8.5 trillion), this agreement lays the groundwork for deeper trade and investment linkages with one of the world's most capital-rich regions. At its core, the MGFTA aims to reduce tariff and non-tariff barriers, boosting trade in high-impact sectors like palm oil, electrical and electronics, petrochemicals, halal products, and even digital services. It follows the Comprehensive Economic Partnership Agreement (CEPA) between Malaysia and the UAE signed earlier this year, indicating a broader policy shift to strengthen ties with the Middle East. This agreement comes at a time when global trade is increasingly fragmented by geopolitical tensions and protectionist policies. For Malaysia, forging new trade corridors is more than just an economic opportunity – it is a hedge against over-reliance on major power blocs and a chance to position itself as a key node in South-South economic cooperation. In addition to trade flows, the MGFTA is expected to encourage greater foreign direct investment from GCC members into Malaysia. Sovereign wealth funds like Saudi Arabia's PIF and the UAE's Mubadala are actively seeking investment diversification, and Malaysia's robust manufacturing base, green energy ambitions, and Islamic finance expertise make it a compelling destination. This is especially promising for sectors such as logistics, infrastructure, and renewable energy – all areas that align with both GCC diversification strategies and Malaysia's own Madani economic agenda. The formal launch of FTA negotiations between Malaysia and the Gulf Cooperation Council (GCC) signals deeper structural shifts that Malaysian investors should take seriously – not just as a policy headline, but as a potential reorientation of capital, demand, and strategic partnerships across multiple sectors. Malaysia's stronghold in halal certification and production could see renewed momentum. As trade barriers fall, local companies in halal food, personal care, pharmaceuticals, and logistics may benefit from easier access to GCC markets where demand is both high and culturally aligned. Public-listed firms involved in food processing, logistics, or halal certification services stand to gain from both volume expansion and brand credibility in a growing export market. Increased interest from GCC sovereign wealth funds in Southeast Asia could drive participation in Malaysian infrastructure, property, and industrial projects. Investors should pay attention to companies involved in industrial park development, ports, and integrated logistics – particularly those already involved in government-linked or cross-border projects. Construction-related counters, especially those tied to public-private partnerships or industrial infrastructure, may also receive a boost in sentiment. As both Malaysia and the Gulf pursue energy transition agendas, the MGFTA may pave the way for bilateral collaboration in clean tech, solar, hydrogen, and sustainable infrastructure. This aligns with Malaysia's National Energy Transition Roadmap (NETR). Investors should look at firms engaged in solar EPC (Engineering, Procurement and Construction), grid technologies and project financing for renewable energy assets. In parallel, energy service providers operating in oilfield maintenance and engineering – especially those with GCC exposure – may also benefit if demand for technical partnerships grows. Malaysia's global leadership in Islamic finance could translate into new co-developed Shariah-compliant instruments, investment funds, and green sukuk frameworks. This opens opportunities for growth in both the finance sector and capital markets more broadly. Malaysian financial institutions that operate Islamic banking or takaful arms may find more collaborative opportunities with GCC counterparts, and investors should monitor any regulatory developments or joint announcements in this space. In short, the MGFTA has the potential to do more than lower trade barriers – it could reshape the flow of capital, the structure of incentives, and the future growth story for key Malaysian industries. For long-term investors, tracking these sectoral shifts early may offer a strategic edge as Malaysia deepens economic ties with one of the most liquid and investment-ready regions in the world. This article is contributed by Moomoo Malaysia dealing head Ken Low (pic). This commentary has not been reviewed by the SC.
The Sun
26-05-2025
- Business
- The Sun
Malaysia signs deal to initiate trade talks with GCC, eyes expansion of businesses -- Tengku Zafrul
KUALA LUMPUR: Malaysia has set its sights on expanding trade with the oil-rich Gulf Cooperation Council (GCC) countries after signing a joint statement to initiate negotiations on a Malaysia-GCC Free Trade Agreement (MGFTA) today. Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Aziz said the MGFTA would help reduce tariffs, non-barriers, promote business mobility and enhance regulatory cooperation, and expressed optimism that trade – which was valued at US$22 billion (USD1 = RM4.21) last year – would further expand. 'In terms of sectors, we are looking at electrical and electronics (E&E), semiconductors, halal products, (and) especially palm oil, as well as chemicals and petrochemicals, among others. 'Through these negotiations, we hope to see increased investments from the GCC into Malaysia, and enhancing access for Malaysian companies to markets in the region,' he told reporters after signing of the joint statement with GCC Secretary-General Jasem Mohamed Albudaiwi on the sidelines of the 46th ASEAN Summit and related summits at the Kuala Lumpur Convention Centre (KLCC) here. It was witnessed by Prime Minister, Datuk Seri Anwar Ibrahim and Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). Tengku Zafrul said the MoU marks a new beginning in cooperation between Malaysia and the Gulf nations, with several chapters outlined, which offer opportunities to focus on various key areas. When asked if MITI had set any projections for the MGFTA, he said it would depend on the outcome of the negotiations. 'When we start the negotiations, we will see the details. From there, we can make some estimates, some projections on where we are, but at least we know we are starting from a base of US$22 billion. 'We will wait for the two negotiating teams to start and look at the line items, the tariff line items, and see what the values are,' he added. He said the MGFTA is an extension of the Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), signed during Prime Minister Datuk Seri Anwar Ibrahim's visit to Abu Dhabi in January. In 2024, total trade between Malaysia and the GCC reached US$22.3 billion (RM101.81 billion), with key exports comprising E&E products, jewellery, petroleum products, palm oil, and palm oil-based products, as well as processed food. The Malaysia-GCC FTA aims to further boost trade by reducing tariff and non-tariff barriers, promoting business mobility and enhancing regulatory cooperation. The 46th ASEAN Summit also features two key high-level meetings — the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit.
The Sun
26-05-2025
- Business
- The Sun
Malaysia, GCC ink pact to begin trade talks and boost business ties
KUALA LUMPUR: Malaysia has set its sights on expanding trade with the oil-rich Gulf Cooperation Council (GCC) countries after signing a joint statement to initiate negotiations on a Malaysia-GCC Free Trade Agreement (MGFTA) today. Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Aziz said the MGFTA would help reduce tariffs, non-barriers, promote business mobility and enhance regulatory cooperation, and expressed optimism that trade – which was valued at US$22 billion (USD1 = RM4.21) last year – would further expand. 'In terms of sectors, we are looking at electrical and electronics (E&E), semiconductors, halal products, (and) especially palm oil, as well as chemicals and petrochemicals, among others. 'Through these negotiations, we hope to see increased investments from the GCC into Malaysia, and enhancing access for Malaysian companies to markets in the region,' he told reporters after signing of the joint statement with GCC Secretary-General Jasem Mohamed Albudaiwi on the sidelines of the 46th ASEAN Summit and related summits at the Kuala Lumpur Convention Centre (KLCC) here. It was witnessed by Prime Minister, Datuk Seri Anwar Ibrahim and Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). Tengku Zafrul said the MoU marks a new beginning in cooperation between Malaysia and the Gulf nations, with several chapters outlined, which offer opportunities to focus on various key areas. When asked if MITI had set any projections for the MGFTA, he said it would depend on the outcome of the negotiations. 'When we start the negotiations, we will see the details. From there, we can make some estimates, some projections on where we are, but at least we know we are starting from a base of US$22 billion. 'We will wait for the two negotiating teams to start and look at the line items, the tariff line items, and see what the values are,' he added. He said the MGFTA is an extension of the Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), signed during Prime Minister Datuk Seri Anwar Ibrahim's visit to Abu Dhabi in January. In 2024, total trade between Malaysia and the GCC reached US$22.3 billion (RM101.81 billion), with key exports comprising E&E products, jewellery, petroleum products, palm oil, and palm oil-based products, as well as processed food. The Malaysia-GCC FTA aims to further boost trade by reducing tariff and non-tariff barriers, promoting business mobility and enhancing regulatory cooperation. The 46th ASEAN Summit also features two key high-level meetings — the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit and the inaugural ASEAN-GCC-China Summit.
The Star
26-05-2025
- Business
- The Star
Malaysia signs deal to initiate trade talks with GCC, eyes expansion of businesses
KUALA LUMPUR: Malaysia has set its sights on expanding trade with the oil-rich Gulf Cooperation Council (GCC) countries after signing a joint statement to initiate negotiations on a Malaysia-GCC Free Trade Agreement (MGFTA). Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the MGFTA would help reduce tariffs, non-barriers, promote business mobility and enhance regulatory cooperation, and expressed optimism that trade – which was valued at US$22bil (RM92.81bil) last year – would further expand. "In terms of sectors, we are looking at electrical and electronics (E&E), semiconductors, halal products, (and) especially palm oil, as well as chemicals and petrochemicals, among others. "Through these negotiations, we hope to see increased investments from the GCC into Malaysia, and enhancing access for Malaysian companies to markets in the region," he told reporters after signing of the joint statement with GCC Secretary-General Jasem Mohamed Albudaiwi on the sidelines of the 46th Asean Summit and related summits at the Kuala Lumpur Convention Centre (KLCC) here on Monday (May 26). It was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Tengku Zafrul said the MOU marks a new beginning in cooperation between Malaysia and the Gulf nations, with several chapters outlined, which offer opportunities to focus on various key areas. When asked if the ministry had set any projections for the MGFTA, he said it would depend on the outcome of the negotiations. "When we start the negotiations, we will see the details. From there, we can make some estimates, some projections on where we are, but at least we know we are starting from a base of US$22bil. "We will wait for the two negotiating teams to start and look at the line items, the tariff line items, and see what the values are," he added. He said the MGFTA is an extension of the Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), signed during Prime Minister Datuk Seri Anwar Ibrahim's visit to Abu Dhabi in January. In 2024, total trade between Malaysia and the GCC reached US$22.3bil (RM101.81bil), with key exports comprising E&E products, jewellery, petroleum products, palm oil, and palm oil-based products, as well as processed food. The Malaysia-GCC FTA aims to further boost trade by reducing tariff and non-tariff barriers, promoting business mobility and enhancing regulatory cooperation. The 46th Asean Summit also features two key high-level meetings - the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the inaugural Asean-GCC-China Summit. – Bernama
Malay Mail
26-05-2025
- Business
- Malay Mail
Malaysia, GCC launch free trade talks to boost exports, cut trade barriers
KUALA LUMPUR, May 26 — Malaysia has set its sights on expanding trade with the oil-rich Gulf Cooperation Council (GCC) countries after signing a joint statement to initiate negotiations on a Malaysia-GCC Free Trade Agreement (MGFTA) today. Minister of Investment, Trade and Industry (Miti) Tengku Datuk Seri Zafrul Aziz said the MGFTA would help reduce tariffs, non-barriers, promote business mobility and enhance regulatory cooperation, and expressed optimism that trade — which was valued at US$22 billion (RM92.8 billion) last year — would further expand. 'In terms of sectors, we are looking at electrical and electronics (E&E), semiconductors, halal products, (and) especially palm oil, as well as chemicals and petrochemicals, among others.' 'Through these negotiations, we hope to see increased investments from the GCC into Malaysia, and enhancing access for Malaysian companies to markets in the region,' he told reporters after signing of the joint statement with GCC Secretary-General Jasem Mohamed Albudaiwi on the sidelines of the 46th Asean Summit and related summits at the Kuala Lumpur Convention Centre (KLCC) here. It was witnessed by Prime Minister, Datuk Seri Anwar Ibrahim and Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). Tengku Zafrul said the MoU marks a new beginning in cooperation between Malaysia and the Gulf nations, with several chapters outlined, which offer opportunities to focus on various key areas. When asked if Miti had set any projections for the MGFTA, he said it would depend on the outcome of the negotiations. 'When we start the negotiations, we will see the details. From there, we can make some estimates, some projections on where we are, but at least we know we are starting from a base of US$22 billion.' 'We will wait for the two negotiating teams to start and look at the line items, the tariff line items, and see what the values are,' he added. He said the MGFTA is an extension of the Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), signed during Prime Minister Datuk Seri Anwar Ibrahim's visit to Abu Dhabi in January. In 2024, total trade between Malaysia and the GCC reached US$22.3 billion (RM101.81 billion), with key exports comprising E&E products, jewellery, petroleum products, palm oil, and palm oil-based products, as well as processed food. The Malaysia-GCC FTA aims to further boost trade by reducing tariff and non-tariff barriers, promoting business mobility and enhancing regulatory cooperation. The 46th Asean Summit also features two key high-level meetings — the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the inaugural Asean-GCC-China Summit. — Bernama
