Troms¸: Malaysia and the European Free Trade Association (EFTA) member states have signed an economic partnership agreement, opening a new chapter for Malaysia’s trade, investment and economic relations with Switzerland, Norway, Iceland, and Liechtenstein. The Ministry of Investment, Trade and Industry (MITI) said that besides the Malaysia-EFTA Economic Partnership Agreement (MEEPA), both Putrajaya and the EFTA member states also inked a memorandum of understanding (MOU) on cooperation and capacity building as well as a joint statement on sustainable palm oil.
According to BERNAMA News Agency, MITI Minister Tengku Datuk Seri Zafrul Aziz emphasized the importance of Malaysia maintaining its neutral and non-aligned stance, especially in the face of current geopolitical uncertainties affecting the global trading landscape. He highlighted that the MEEPA, Malaysia’s 18th free trade agreement, is a strategic move to diversify markets amid global economic challenges. The agreement is expected to pave the way for expedited Malaysia-EU FTA negotiations, offering more business opportunities and higher-paying jobs for Malaysians.
MEEPA was signed in Troms¸, Norway, by Tengku Zafrul, alongside Norway’s Minister of Trade and Industry Cecilie Terese Myrseth, Iceland’s Minister of Finance and Economic Affairs Da°i M¡r Krist³fersson, Liechtenstein’s Deputy Prime Minister Sabine Monauni, and Switzerland’s Vice President Guy Parmelin. The agreement covers various areas including goods, services, investments, intellectual property rights, and economic cooperation, and is anticipated to bring new export opportunities and attract high-technology investments.
The agreement guarantees long-term duty-free access to over 90 percent of Malaysia’s exports to the four signatory countries, which were previously under the temporary unilateral scheme of Generalised System of Preferences (GSP). In 2024, Malaysia’s trade with the EFTA was valued at RM14.4 billion, with Switzerland accounting for over 80 percent of this trade. Switzerland, Norway, and Liechtenstein have cumulatively invested RM14.2 billion in Malaysia, creating more than 24,000 jobs.
MITI also noted collaboration efforts such as the Malaysian Cocoa Board’s partnership with Swiss company Nestl© to develop KitKat Dark Borneo. Additionally, the agreement is expected to benefit Malaysian professionals by enhancing access and mobility in EFTA markets through transparent rules.
The agreement includes a robust agenda for cooperation and capacity building in various sectors such as engineering, technology, green mobility, digitalisation, and human capital development. During the MEEPA signing, Tengku Zafrul witnessed the MOU exchange between Universiti Teknologi Petronas and two Norwegian universities, aiming to foster academic collaboration in hydrogen technology and related fields.
MITI stated that these collaborative ventures are expected to contribute to the sustainable development of a skilled talent pool and the long-term growth of industries, enhancing the quality of Malaysia’s higher education and translational research.