ASEAN, Led By Malaysia, Presents Market Diversification For EFTA - Swiss Delegation Head
KUALA LUMPUR, April 24 (Bernama) -- The Association of Southeast Asian Nations (ASEAN), particularly Malaysia, provides market diversification opportunities for the European Free Trade Association (EFTA) to expand its trade outreach, said Head of the Swiss Delegation, Thomas Aeschi.
EFTA states are Switzerland, Liechtenstein, Norway and Iceland.
Aeschi said Malaysia offers a great alternative for EFTA-based companies to increase their presence in the ASEAN region.
“Malaysia offers a great alternative for companies. It is similar to Singapore, but it is cheaper than Singapore, and it is more advanced than Vietnam.
“Malaysia offers an interesting position in between, I would say, Vietnam and Singapore," he told reporters during a media briefing today.
Also present was the Ambassador of Switzerland, Chantal Moser.
Aeschi is part of a delegation of parliamentarians from the EFTA states on an official visit to Malaysia from April 21 to April 25.
The delegation aims to deepen parliamentary relations, to get first-hand information and insights, as well as to gather political support for the Economic Partnership Agreement between Malaysia and the EFTA states (MEEPA), which was concluded on April 11, 2025.
The visit to Malaysia serves as an opportunity for the EFTA parliamentarians to prepare for domestic discussions and ratification of the MEEPA in the four respective parliaments.
Aeschi said a number of Swiss companies were looking closer at the Malaysian market, and planning on increasing their presence with MEEPA in place.
“Also, the investment protection agreement that is, hopefully, to be signed this year gives them additional security, that the amount of money they invest in Malaysia is secure, has a framework to deal with, and is the basis to expand their business operations,” he added.
Currently, about 35 companies with Swiss ties employ over 20,000 people in Malaysia.
Head of Norwegian delegation, Trine Lise Sundnes, said Norway and EFTA countries recognised the benefits of free trade across borders amidst the uncertainties in the global economies.
“We are happy that our talks this week with counterparts here confirm that Malaysia is also in the same opinion when it comes to trade, that the rule-based regime is the one that benefits us for growth.
“That is important for us, and also that we do it sustainably. We have seen many examples here in Malaysia where innovation and research fit well into our way of dealing with sustainability and innovations,” she noted.
Negotiations towards a comprehensive economic partnership agreement between Malaysia and EFTA states were launched in November 2022.
The first round was held in March 2014, followed by 16 negotiation rounds and a series of meetings at the level of heads of delegations and experts.
Sundnes said the negotiations were concluded on April 11, 2025, and MEEPA is scheduled to be signed in June, followed by a ratification process by both sides.
“It took some time, but we are happy that it is concluded. We see clearly that there is a need for more free trade agreements (FTAs) amongst allies and friends,” she said.
EFTA is one of the world’s largest free trade networks, with 33 FTAs established with 44 countries and territories outside the European Union.
Since 2019, EFTA-Malaysia trade recorded US$550 million and reached US$2.35 billion in 2014, with imports from Malaysia valued at US$1.20 billion and EFTA exports at US$1.16 billion (US$1=RM4.369).
Key EFTA exports in 2024 included machinery, pharmaceuticals, electrical machinery, precision instruments and clocks, and watches.
Imports from Malaysia to the EFTA states were dominated by electrical and machinery, precision instruments, rubber, and aluminium.
Within ASEAN, EFTA has FTAs with Singapore, Thailand, Indonesia and the Philippines.
-- BERNAMA