MALAYSIA has signed a pivotal free trade agreement with the Member States of the European Free Trade Association (EFTA), signalling a major stride in its strategy to diversify markets and deepen economic ties beyond its traditional partners.
The Malaysia-EFTA Economic Partnership Agreement (MEEPA) was signed by Malaysia’s Minister of Investment, Trade and Industry, Senator Tengku Zafrul Aziz, alongside Norway’s Minister of Trade and Industry, Cecilie Terese Myrseth; Iceland’s Minister of Finance and Economic Affairs, Daði Már Kristófersson; Liechtenstein’s Deputy Prime Minister, Sabine Monauni; and Switzerland’s Vice President and Federal Councillor, Guy Parmelin.
A Memorandum of Understanding on Cooperation and Capacity Building and a Joint Statement on Sustainable Palm Oil were also formalised at the same event.
Commenting on the agreement, Tengku Zafrul said, “As a trading nation, it is important for Malaysia to maintain its neutral and non-aligned stance, particularly in the face of current geopolitical uncertainties that complicate the global trading landscape.
“Malaysia’s unwavering neutrality and non-alignment is also reflected in the signing of MEEPA, which is Malaysia’s 18th Free Trade Agreement thus far, and is part of our enhanced attempt to diversify our 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.”
The wide-ranging agreement encompasses goods and services, investment, intellectual property rights, competition policy, customs facilitation, government procurement, sanitary and phytosanitary standards, sustainable development, and economic cooperation.
A statement issued by the Ministry of Investment, Trade and Industry reveeled, once implemented, MEEPA will secure permanent duty-free access for over 90 per cent of Malaysian exports to the EFTA markets. This replaces benefits previously extended under the Generalised System of Preferences (GSP), a unilateral scheme.
In 2024, total trade between Malaysia and the EFTA bloc stood at RM14.4 billion, with over 85 per cent comprising industrial products such as electronics, optical instruments, metal goods, plastics, and rubber-based products. Switzerland accounted for the lion’s share, recording RM12.2 billion in trade, followed by Norway at RM2.1 billion.
Cumulative investment from Switzerland, Norway and Liechtenstein has reached RM14.2 billion, supporting the creation of more than 24,000 jobs in Malaysia. Among the success stories is KitKat Dark Borneo, a premium chocolate developed using Malaysian cocoa through a collaboration between Lembaga Koko Malaysia and Swiss multinational Nestlé.
The agreement is also expected to enhance cross-border mobility and access for Malaysian professionals, including accountants, lawyers, auditors, nurses, teachers, and physiotherapists.
An integral feature of the partnership is its commitment to long-term cooperation and capacity building. This includes joint programmes in engineering, science and technology, green transport, digitalisation, automation, and the medical sector, as well as human capital development through training, internships, and expert exchanges.
During the signing ceremony, Tengku Zafrul witnessed the exchange of a Memorandum of Understanding between Universiti Teknologi Petronas and Norway’s University of South-Eastern Norway and University of Stavanger. The academic collaboration focuses on hydrogen technology, carbon capture and storage, marine engineering, and renewable energy.
“These collaborative ventures will support Malaysia’s sustainable industrial growth while enhancing the quality of higher education and specialised research,” said the Minister. - June 23, 2025
