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As Malaysia’s first free trade agreement with several European countries, the Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement is expected to accelerate Malaysia-EU FTA negotiations and create new business opportunities for local companies, including SMEs, while generating higher-paying jobs for Malaysians.
Malaysia has signed a new Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement (MEEPA) agreement with the four EFTA Member States - Switzerland, Norway, Iceland, and Liechtenstein, seen as not just a milestone in foreign trade, but a key driver of employment, talent mobility, and economic transformation.
The agreement, established on 23 June 2025, is Malaysia’s 18th Free Trade Agreement (FTA) was signed by Minister of Investment, Trade and Industry Tengku Zafrul Aziz, and his counterparts:
- Cecilie Terese Myrseth, Minister of Trade and Industry, Norway;
- Daði Már Kristófersson, Minister of Finance and Economic Affairs, Iceland;
- Sabine Monauni, Deputy Prime Minister - Ministry of Foreign Affairs, Environment and Culture, Liechtenstein, and
- Guy Parmelin, Vice President, Federal Councillor, Switzerland.
The MEEPA also aims to diversify markets amidst global economic uncertainties and is expected to create more business opportunities for local companies, including SMEs, as well as offer higher-paying jobs for Malaysians, which are both critical components of the country’s economic transformation agenda.
Cumulatively, EFTA investments have already contributed RM14.2bn to Malaysia's economy and led to the creation of more than 24,000 jobs. MITI see a potential for further growth, with increased exports and long-term duty-free access to more than 90% of Malaysia’s goods — particularly in industrial sectors such as E&E, optical and scientific instruments, metal products, plastics and rubber-based products.
The agreement also promises to improve professional mobility and services. Malaysian professionals including accountants, auditors, lawyers, physiotherapists, nurses, and teachers stand to benefit from enhanced access and mobility to EFTA markets, supported by clear and transparent regulations.
Beyond trade, MEEPA includes a strong cooperation and capacity-building programmes, with sectoral focus on engineering, science, technology and innovation, green mobility, digitalisation, pharmaceuticals, and human capital development. This includes training, internships, and expert exchanges programmes.
The above aside, a memorandum of understanding (MoU) exchange witnessed during the signing ceremony — between Universiti Teknologi Petronas two Norwegian institutions, namely the University of South-Eastern and the University of Stavanger, is set to foster academic collaboration and specialised expertise sectors such as hydrogen technology, carbon capture and storage, and renewable energy. These collaborations are expected to contribute towards 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.
READ MORE: Malaysia and the US move closer to finalising tariff deal: MITI
Lead image / Tengku Zafrul FB
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