Malaysia and Iran seek broader trade and investment ties across energy, palm oil, halal economy and technology

MALAYSIA: Malaysia and Iran are looking to deepen their economic relationship across a range of sectors beyond traditional trade, following a bilateral meeting between Prime Minister Datuk Seri Anwar Ibrahim and Iranian President Masoud Pezeshkian, the New Straits Times (NST) reported.

The two leaders discussed expanding existing commercial ties and encouraging greater participation from companies and private-sector investors, with both sides agreeing on the need to identify high-potential sectors that could translate bilateral discussions into concrete investment and commercial outcomes, according to the NST.

Malaysia-Iran bilateral trade stood at RM2.45 billion in 2025, with Malaysian exports accounting for RM2.17 billion. Major Malaysian exports included palm oil, while imports from Iran consisted primarily of oil and gas products.

Key sectors identified

Energy was among the priority areas, with both sides exploring opportunities related to energy security, efficiency, and the transition toward more sustainable energy systems, as reported by the NST.

Iran’s significant energy resources, combined with Malaysia’s capabilities across the energy value chain, were identified as providing scope for mutually beneficial cooperation, subject to applicable international laws and regulations.

Agriculture and food security also featured prominently, with both leaders acknowledging growing concerns over global food supply chain resilience, the NST reported.

Malaysia’s position as a major palm oil producer offers another avenue for expanded trade, including greater market access for Malaysian palm oil and palm-based products in Iran and potentially the wider region.

The halal economy was also identified as a cooperation area, leveraging Malaysia’s internationally recognised halal ecosystem and expertise across standards, certification, food, pharmaceuticals, cosmetics, and related industries.

Technology, digitalisation, and innovation were flagged as additional areas for collaboration, including partnerships involving companies, research institutions, and universities. Higher education and academic exchanges also formed part of the discussions.