KUALA LUMPUR (June 23): Malaysia has signed a free trade agreement (FTA) with Switzerland, Norway, Iceland, and Liechtenstein, all member states of the four-nation European Free Trade Association (Efta) bloc.

This agreement marks Malaysia’s 18th such accord to date and is expected to facilitate expedited negotiations for a free trade agreement with the broader European Union, the Ministry of Investment, Trade and Industry (Miti) said in a statement Monday (June 23).

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

Once enforced, the FTA will guarantee duty-free access for over 90% of Malaysian exports to the four Efta countries. This market imported RM14.4 billion in goods from Malaysia in 2024, predominantly industrial products such as electrical and electronics, optical and scientific instruments, metal products, plastics and rubber-based products.

The deal is also anticipated to generate new export opportunities and enable Malaysia to continue attracting high-technology and knowledge-based investments. Efta nations have cumulatively invested RM14.2 billion in Malaysia, creating over 24,000 job opportunities.

In the services sector, Malaysian professionals, including accountants, auditors, lawyers, physiotherapists, nurses and teachers are expected to benefit from enhanced access and mobility through transparent rules in the Efta markets, Miti noted.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz reiterated that it is important for Malaysia, as a trading nation, to maintain its neutral and non-aligned stance, especially amid current geopolitical uncertainties.

He further said the signing of the Malaysia-European Free Trade Association Economic Partnership Agreement (Meepa) is part of Malaysia’s enhanced attempt to diversify its markets. “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 said.

In addition to Meepa, a memorandum of understanding (MoU) on cooperation and capacity building and a joint statement on sustainable palm oil were also signed between Malaysia and Efta member states.

The built-in agenda for cooperation and capacity-building programmes aims 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; and human capital development through training, internships and expert exchange programmes.

Tengku Zafrul also witnessed the MoU exchange between Universiti Teknologi Petronas and two Norwegian universities — the University of South-Eastern and the University of Stavanger — that seeks to foster academic partnership and specialised expertise in hydrogen technology; carbon capture and storage, and related fields across the oil, gas, marine and shipping and renewable energy sectors.