Malaysia is pushing to deepen its economic relationship with Ethiopia, with Prime Minister Anwar Ibrahim inviting Addis Ababa to open an embassy in Kuala Lumpur as both countries look to expand trade and cooperation across several high-growth sectors.

Anwar made the proposal during a bilateral meeting with Ethiopian Prime Minister Abiy Ahmed on the sidelines of the 18th BRICS Leaders’ Summit in New Delhi on Saturday. The move comes as Malaysia steps up its engagement with Ethiopia and the wider African market.

Trade and investment move higher on agenda

The diplomatic push follows Malaysia’s reopening of its embassy in Addis Ababa in September 2025, ending a 43-year closure and providing a renewed platform for commercial ties between the two countries.

Bilateral trade reached RM446.8 million($27.69 million) in 2023, with Malaysian exports accounting for RM358.6 million($22.22 million).

Those exports increased 24.6% from the previous year, highlighting growing commercial activity despite the relatively modest overall trade value.

The two governments are now preparing for their first Bilateral Consultation, which will be held in Kuala Lumpur next year. The meeting is expected to provide a formal channel for expanding cooperation.

Agriculture, digital services and tourism in focus

Discussions between Anwar and Abiy covered a broad range of sectors, including halal products, agriculture, food security, pharmaceuticals, digital services, renewable energy and tourism.

For Ethiopia, deeper commercial ties with Malaysia could provide access to an established Southeast Asian market and additional opportunities for investment, technology and services.

For Malaysia, closer relations create another avenue for expanding its economic presence in Africa.

Anwar also thanked Ethiopia for supporting Malaysia’s engagement with BRICS. Malaysia became a BRICS partner country on Jan. 1, 2025, giving the relationship an additional multilateral dimension.

The latest meeting builds on reciprocal high-level visits, with Abiy travelling to Malaysia in 2024 and Anwar visiting Ethiopia in 2025.

The renewed diplomatic engagement signals an effort by both governments to turn stronger political ties into broader economic cooperation.