JAKARATA: Indonesia and Malaysia have begun talks to explore the possibility of a free trade pact between the Association of Southeast Asian Nations and Egypt, the Indonesian Ministry of Trade said on Thursday.

Indonesia and Malaysia are among the founding members of ASEAN, a regional bloc established in 1967. The union is the world鈥檚 fifth-largest economy and home to some 670 million people. 

The two countries have been working to increase their trade engagement with Egypt in recent years. Indonesia recorded a $1.11 billion trade surplus with the North African nation last year, while Egypt is Malaysia鈥檚 third-largest trading partner in Africa in 2022, with a $1.08 billion trade value. 

Officials from the Indonesian Embassy in Cairo and the Malaysia External Trade Development Cooperation, or MATRADE, held a meeting on Sunday in Cairo to discuss ways to boost cooperation between the Southeast Asian bloc and Egypt, the Indonesian Ministry of Trade said in a statement. 

鈥淲e welcome MATRADE鈥檚 presence here to discuss the possibility of a free trade pact between ASEAN-Egypt. Egypt is a strategic business partner and an old friend of Indonesia and Malaysia,鈥� M. Syahran Bhakti, trade attache at the Indonesian Embassy, said. 

Increasing trade and investment between ASEAN and Egypt is 鈥渧ery important,鈥� he added, saying that Indonesia and Malaysia should also consider trading with Egypt in their respective local currencies. 

Last year, Indonesian and Egyptian businesses signed preliminary agreements with a potential value of more than $865 million during the visit of Indonesian Trade Minister Zulkifli Hasan. 

In February, Malaysia began talks to set up a palm oil export hub in the Suez Canal Economic Zone, as it seeks to make Egypt a key part of its strategy to expand palm oil exports to Africa. 

鈥淎SEAN countries can maximize the trade cooperation potential with Egypt to gain access to European and African markets,鈥� Tennike, the economic coordinator at the Indonesian Embassy, said, adding that at the upcoming Indonesia-Africa Forum in August 2024, Indonesia will showcase prospects of such increased partnership.