"We have agreed that a working group would be set up in the commerce ministry to facilitate this process," the minister told a luncheon meeting hosted by Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI).

Commerce Secretary Suhel Ahmed, Malaysian High Commissioner to Bangladesh Ashaary Bin Sani and BMCCI President Salahuddin Kasem Khan were also present at the meeting held at Pan Pacific Sonargaon Hotel.

"To remain competitive in the global market now dominated by different trade blocs and multilateral and bilateral free trade deals, signing of such an FTA may be considered as a pragmatic approach," the minister said.

Emphasising political will of the two governments for signing the FTA, Altaf said the initiative would take time as it needs the political will. "However, we are confident that this will be implemented in due course of time."

He said the working group would comprise members from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and BMCCI.

The group will devise a framework agreement for Bangladesh-Malaysia FTA in line with the framework for free trade deals with South Asian nations.

Altaf said another framework agreement for a proposed FTA with the OIC countries in Southeast Asia could also be drawn up.

"The move will strengthen cooperation among the countries under Seaco, comprising Bangladesh, Malaysia, Indonesia and Brunei, which was proposed by Bangladesh at an Islamic conference in 1992," he added.

In his speech, BMCCI President Salahuddin Kasem Khan urged the government to prepare the negative and positive lists of products cautiously, addressing all tariff and non-tariff issues related to the free trade deal.

He suggested holding a Bangladesh single country trade show along with a trade and investment seminar in Malaysia to promote Bangladesh's export to the Southeast Asian country. A Malaysian fair can also be hosted in Dhaka, he added.

According to the BMCCI president, Bangladesh' export to Malaysia is declining gradually. In 2002-03, export to Malaysia declined to $4.7 million from $7.7 million in 2001-02 and $9.4 million in 2000-01.

On the other hand, Malaysia's export to Bangladesh is witnessing a gradual increase. In 2002-03, Malaysia exported $169 million while the amount was $145 million in 2001-02 and $148 million in 2000-01.

However, remittance flow from Malaysia and employment opportunities there witnessed an increasing trend in recent years.