KUALA LUMPUR, Malaysia June 23, 2025 — Malaysia has signed a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) states—Switzerland, Norway, Iceland, and Liechtenstein—marking its 18th FTA and strengthening ties with key European markets. The Malaysia-EFTA Economic Partnership Agreement (MEEPA) was formalized by Malaysia’s Minister of Investment, Trade and Industry, YB Senator Tengku Datuk Seri Utama Zafrul Aziz, alongside counterparts from the EFTA nations.
The agreement, signed alongside a Memorandum of Understanding (MOU) on Cooperation and Capacity Building and a Joint Statement on Sustainable Palm Oil, aims to diversify Malaysia’s markets amid global economic uncertainties. Tengku Zafrul emphasized Malaysia’s neutral stance in geopolitics, stating, “MEEPA reflects our commitment to market diversification and is a step toward expediting Malaysia-EU FTA negotiations. It will unlock new business opportunities, especially for SMEs, and create high-paying jobs to drive our economic transformation.”
MEEPA covers trade in goods, services, investments, intellectual property, customs facilitation, competition policy, and sustainable development. It guarantees duty-free access for over 90% of Malaysia’s exports, including industrial products like electronics, optical instruments, and rubber-based goods, to EFTA markets. This secures benefits previously under the Generalised System of Preferences (GSP).
In 2024, Malaysia’s trade with EFTA reached RM14.4 billion, with Switzerland accounting for RM12.2 billion and Norway RM2.1 billion. Industrial products dominated exports, comprising over 85% of the total. Investments from Switzerland, Norway, and Liechtenstein have totaled RM14.2 billion, creating over 24,000 jobs. A notable collaboration is Nestlé’s KitKat Dark Borneo, made with Malaysian cocoa.
The agreement enhances opportunities for Malaysian professionals, including accountants, lawyers, and nurses, through improved market access and mobility in EFTA countries. It also includes cooperation programs in engineering, green technology, digitalization, and pharmaceuticals, alongside human capital development via training and expert exchanges.
A highlight of the signing was an MOU between Universiti Teknologi Petronas and Norway’s University of South-Eastern and University of Stavanger, fostering expertise in hydrogen technology, carbon capture, and renewable energy. These efforts aim to build a skilled workforce and support sustainable industrial growth.
The Ministry of Investment, Trade and Industry (MITI) underscored MEEPA’s role in positioning Malaysia as a global trade and investment hub, aligning with its goal of becoming a high-income nation.