Malaysia Seals Free Trade Agreement with Iceland, Liechtenstein, Norway, and Switzerland

Credit Photo : Tengku Zafrul Tengku Abdul Aziz X Page

KUALA LUMPUR, April 11, 2025 — Malaysia has finalized a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) nations—Iceland, Liechtenstein, Norway, and Switzerland—paving the way for enhanced economic ties, the Ministry of Investment, Trade and Industry announced today.

The Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA), concluded on April 11, covers trade in goods and services, investment, intellectual property rights, competition, government procurement, sustainable development, and more. The agreement is slated for signing in June 2025.

In 2024, Malaysia’s trade with EFTA countries hit RM14.4 billion, with exports like electronics, machinery, chemicals, and rubber leading the way. Imports included chemicals, machinery, and metals. The MEEPA secures permanent tariff-free access for Malaysian exporters, replacing the temporary benefits of EFTA’s Generalised System of Preferences (GSP), which could end as Malaysia’s economy grows.

Minister of Investment, Trade and Industry, Tengku Datuk Seri Utama Zafrul Aziz, hailed the deal as a boost for Malaysian exporters amid global trade uncertainties, particularly with looming U.S. tariff concerns. “MEEPA provides the certainty our exporters need and strengthens Malaysia’s economic ties with EFTA nations, especially in high-value goods and services,” he said.

Beyond trade, the agreement opens doors for collaboration in research, renewable energy, and high-tech industries through a dedicated Cooperation and Capacity Building chapter. This could see Malaysia tapping into EFTA’s expertise via joint projects and Memorandums of Understanding (MOUs), driving innovation and growth.

The Ministry emphasized that MEEPA aligns with Malaysia’s goal of becoming a top destination for quality investments and a competitive global trading hub.