Malaysia has entered into a free trade agreement with the member states of the European Free Trade Association (EFTA), fostering economic collaboration and investment ties with Switzerland, Norway, Iceland, and Liechtenstein.
The Malaysia-EFTA Economic Partnership Agreement (MEEPA) was officially signed on Monday in Tromsø, Norway, by Malaysia’s Minister of Investment, Trade and Industry, Tengku Zafrul, together with 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 and Minister of Foreign Affairs, Environment and Culture, Sabine Monauni; and Switzerland’s Vice President and Federal Councillor, Guy Parmelin.
Minister Tengku Datuk Seri Zafrul Aziz, stated that in addition to the MEEPA, Malaysia and the EFTA member states also signed a memorandum of understanding (MoU) to promote cooperation and capacity building, reaffirming their shared commitment.
In his statement, minister highlighted that the signing of MEEPA demonstrates the country’s neutral position and its broader goal of expanding export markets in response to ongoing global economic challenges.
“As Malaysia’s first FTA with several European countries, MEEPA is also expected to pave the way for expedited Malaysia-EU FTA negotiations. The trade potential to be realized 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 added.
Once enacted, the free trade agreement will grant duty-free access to over 90% of Malaysian exports to EFTA countries. In 2024, these nations imported RM14.4 billion worth of Malaysian goods, primarily industrial products such as electrical and electronic equipment, optical and scientific instruments, metal items, and goods made from plastics and rubber.
According to the ministry, this deal is poised to create fresh export opportunities and support Malaysia’s efforts to attract more high-tech and knowledge-driven investments. To date, EFTA member states have collectively invested RM14.2 billion in Malaysia, contributing over 24,000 jobs.
The pact also encompasses trade in goods and services, investments, intellectual property, customs facilitation, competition policy, sanitary and phytosanitary standards, sustainable trade practices, government procurement, and broader economic cooperation.
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