Investment, trade and industry minister Tengku Zafrul Aziz said that besides the Malaysia-EFTA Economic Partnership Agreement (Meepa), both Putrajaya and the EFTA member states inked a memorandum of understanding on cooperation and capacity building as well as a joint statement on sustainable palm oil.
The EFTA was founded in 1960 and promotes free trade and economic integration among its four members.
In a statement, Tengku Zafrul said Malaysia’s neutrality is reflected in the signing of Meepa, which is Malaysia’s 18th free trade agreement and in line with the country’s efforts to diversify its export markets amid global economic uncertainties.
“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.
“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 said.
The agreement covers goods, services, investments, intellectual property rights, customs facilitation, competition policy, sanitary and phytosanitary, trade and sustainable development, government procurement, and economic cooperation.
According to the ministry, the agreement is expected to bring new export opportunities and enable Malaysia to continue attracting high technology and knowledge-based investments from the four countries.
It guarantees long-term duty-free access to more than 90% of Malaysia’s exports, including all industrial products.
Malaysia’s trade with the EFTA was valued at RM14.4 billion last year.
More than 85% 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.
Of the four member states, Switzerland accounted for more than 80% of the 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.
The ministry said a prime example is the Malaysian Cocoa Board’s collaboration with Swiss company Nestlé to develop KitKat Dark Borneo, a premium single-origin chocolate crafted exclusively from Malaysian cocoa beans.
In the area of services, Malaysian professionals such as accountants, auditors, lawyers, physiotherapists, nurses, and teachers are expected to benefit from enhanced access and mobility to the EFTA markets.