KUALA LUMPUR, 23 JUNE 2025: Malaysia and the European Free Trade Association (EFTA) member states have signed an economic partnership agreement, marking a new chapter for trade, investment and economic relations with Switzerland, Norway, Iceland and Liechtenstein.
The Investment, Trade and Industry Ministry (MITI) said both Malaysia and the EFTA member states also signed a memorandum of understanding (MoU) on cooperation and capacity building, as well as a joint statement on sustainable palm oil.
Minister Tengku Datuk Seri Utama Zafrul Aziz, said it is important for Malaysia, as a trading nation, to maintain its neutral and non-aligned stance, particularly in the face of current geopolitical uncertainties that complicate the global trading landscape.
He said the unwavering neutrality and non-alignment is also reflected in the signing of the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA).
He noted that it is the country's 18th free trade agreement (FTA) thus far, and is part of an enhanced attempt to diversify markets amidst global economic uncertainties.
"As Malaysia's first FTA with several European countries, the MEEPA is also expected to pave the way for expedited Malaysia-EU FTA negotiations.
"The trade potential to be realised will provide more business opportunities for local companies, including small and medium enterprises, and offer higher-paying jobs for Malaysians – both key in driving our economic transformation agenda," he said in a statement.
The MEEPA was signed by Tengku Zafrul and his counterparts representing Switzerland, Norway, Iceland and Liechtenstein.
MEEPA covers goods, services, investments, intellectual property rights, customs facilitation, competition policy, sanitary and phytosanitary measures, trade and sustainable development, government procurement and economic cooperation.
MITI said it is expected to bring new export opportunities and enable Malaysia to continue attracting high-technology and knowledge-based investments from these four non-EU member countries.
Upon entry into force, the agreement guarantees long-term duty-free access for over 90 per cent of Malaysia's exports to the four signatory countries.
This includes all industrial products and secures benefits that were previously available under the temporary Generalised System of Preferences (GSP) scheme.
In 2024, Malaysia's trade with the EFTA was valued at RM14.4 billion, with over 85 per cent of its exports to these countries being industrial products covering electrical and electronics, optical and scientific instruments, metal products, plastics and rubber-based products.
Switzerland accounted for over 80 per cent of trade, amounting to RM12.2 billion, followed by Norway at RM2.1 billion.
Cumulatively, Switzerland, Norway and Liechtenstein have invested RM14.2 billion in Malaysia, resulting in the creation of over 24,000 job opportunities.
A prime example is Lembaga Koko Malaysia's collaboration with the renowned Swiss-based company Nestlé to develop KitKat Dark Borneo, a premium single-origin chocolate crafted exclusively from Malaysian cocoa beans.
In the area of services, Malaysian professionals, encompassing accountants, auditors, lawyers, physiotherapists, nurses and teachers, are expected to benefit from enhanced access and mobility through transparent rules in the EFTA markets.
The agreement includes a strong agenda for cooperation and capacity building, focusing on engineering, technology, green mobility, digitalisation, pharmaceuticals, and human capital development through training and exchanges.
During the MEEPA signing, Tengku Zafrul also witnessed the MoU exchange between Universiti Teknologi Petronas and two Norwegian universities, namely the University of South-Eastern Norway and the University of Stavanger.
The initiative seeks to foster academic collaboration and specialised expertise in hydrogen technology, carbon capture and storage, as well as in related fields across the oil, gas, marine and shipping, and renewable energy sectors.
The collaborative ventures are expected to contribute towards the sustainable development of a skilled talent pool and long-term growth of industries by enhancing the quality of Malaysia's higher education and translational research.
