Malaysia and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland have successfully concluded negotiations for the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA). The agreement, scheduled to be signed in June 2025, marks a significant milestone in enhancing Malaysia’s long-term economic engagement with EFTA countries and boosting trade, particularly in high-value goods and services.
MEEPA will cover a broad range of areas, including trade in goods and services, investment, intellectual property rights, competition, government procurement, cooperation and capacity building, sustainable development, and customs facilitation. One of the key outcomes for Malaysia is securing permanent preferential market access for exporters, replacing the current temporary tariff benefits under EFTA’s Generalised System of Preferences (GSP), which Malaysia is expected to graduate from. This transition ensures long-term certainty for Malaysian businesses and strengthens export competitiveness in EFTA markets.
In 2024, bilateral trade between Malaysia and EFTA countries reached MYR 14.4 billion (USD 3.1 billion). Malaysia’s principal exports to the bloc include electrical and electronic products, machinery, scientific instruments, chemicals, and rubber, while imports largely comprise chemicals, metals, machinery, and precision equipment. MEEPA also opens the door for deeper collaboration through knowledge exchange and innovation. EFTA is recognized for its expertise in research and development across renewable energy, high-tech, and precision industries. Through the Cooperation and Capacity Building chapter, Malaysia is poised to leverage these strengths via targeted partnerships and memorandum of understanding (MoU), creating new avenues for growth, innovation, and sustainable development.
(Sources: The Edge Malaysia; New Straits Times)
