Malaysia Signs Economic Partnership Deal With Switzerland, Norway, Iceland And Liechtenstein

KUALA LUMPUR, June 23 (Bernama) -- 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.

“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,” MITI Minister Tengku Datuk Seri Zafrul Aziz said in a statement here today.

He said Malaysia’s unwavering neutrality and non alignment is also reflected in the signing of MEEPA, which is its 18th free trade agreement (FTA) thus far and is part of the country’s enhanced attempt to diversify its markets amid global economic uncertainties.

“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 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,” he added.

MEEPA was signed in Tromsø, Norway, today by Tengku Zafrul, 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, Switzerland’s Vice President and Federal Councillor Guy Parmelin.

The pact covers goods, services, investments, intellectual property rights, customs facilitation, competition policy, sanitary and phytosanitary, trade and sustainable development, government procurement and economic cooperation.

“It is expected to bring new export opportunities and enable Malaysia to continue attracting high technology and knowledge-based investments from those four non-EU member countries.

“Upon entry into force, the agreement guarantees long-term duty-free access to more than 90 per cent of Malaysia’s exports, including all industrial products, to the four signatory countries, securing benefits that were previously offered under the temporary unilateral scheme of Generalised System of Preferences (GSP),” MITI said.

In 2024, Malaysia’s trade with the EFTA was valued at RM14.4 billion.

Over 85 per cent of Malaysia’s exports to these countries were industrial products covering electrical and electronics, optical and scientific instruments, metal products, plastics and rubber-based products.

MITI said that of the four member states, Switzerland accounted for over 80 per cent of trade amounting to RM12.2 billion, followed by Norway at RM2.1 billion.

Cumulatively, Switzerland, Norway and Liechtenstein have invested RM14.2 billion in Malaysia, resulting in the creation of over 24,000 job opportunities.

“A prime example is the Malaysian Cocoa Board’s collaboration with the renowned Swiss company Nestlé to develop KitKat Dark Borneo, a premium single-origin chocolate crafted exclusively from Malaysian cocoa beans,” the ministry said.

In the area of services, Malaysian professionals encompassing accountants, auditors, lawyers, physiotherapist, nurses, and teachers are expected to benefit from enhanced access and mobility through transparent rules in the EFTA markets.

MITI said the agreement also has a robust built-in agenda for cooperation and capacity building programmes to further strengthen the development of sectoral capabilities in areas such as engineering, science, technology and innovation; green mobility and transportation; digitalisation and automation; pharmaceuticals and medical devices; as well as human capital development through training, internships and expert exchange programmes.

During the MEEPA signing, Tengku Zafrul also witnessed the MOU exchange between Universiti Teknologi Petronas and two Norwegian universities, namely the University of South-Eastern Norway and the University of Stavanger.

MITI said the initiative seeks to foster academic collaboration and specialised expertise in hydrogen technology, carbon capture and storage, as well as related fields across the oil, gas, marine and shipping, and renewable energy sectors.

“The collaborative ventures are expected to contribute towards the sustainable development of a skilled talent pool and long-term growth of industries by enhancing the quality of Malaysia’s higher education and translational research,” it added.

-- BERNAMA