Malaysia and Switzerland Seal Groundbreaking Free Trade Deal via EFTA
- ssp-01
- Jun 25
- 2 min read
Zurich, Switzerland 23, June 2025
A Historic Milestone for Malaysia - Switzerland Relations
In a landmark achievement for international trade, Malaysia and Switzerland, along with fellow European Free Trade Association (EFTA) members Norway, Iceland, and Liechtenstein, have officially signed a comprehensive Economic Partnership Agreement (EPA). The historic signing ceremony took place in Tromsø, Norway, marking the successful conclusion of over a decade of negotiations that began in 2012.
A major milestone was reached on Nov 5th, 2012, when a Memorandum of Understanding (MOU) for FTA was signed during the official visit of Federal Councilor Johann Schneider-Ammann to Malaysia. Dr. Urs Lustenberger, President of SwissCham ASIA, along with Malaysian Committee Chairs Patrick Kriesemer and Guna R. Mahalingam had the honor of witnessing the event.
The agreement, known as Malaysia-EFTA Economic Partnership Agreement, paves the way for stronger economic ties, expands business opportunities, and increases trade flows between Malaysia and the EFTA bloc.
“This deal represents a new chapter in our bilateral relations and promises significant benefits for businesses and consumers on both sides,” said Guna R. Mahalingam, Honorary Consul of Malaysia in Zurich, Switzerland, Founder and CEO of Strategic Swiss Partners AG.
Malaysia-Switzerland Trade
Malaysia is Switzerland’s second largest investment destination in Southeast Asia.
In 2024, Swiss exports to Malaysia were valued at over 806 CHF million and the same year, imports from Malaysia to Switzerland reached 604 CHF million More than half (58%) came from the chemical and pharmaceutical industries as well as from machinery, and electronics.
Key Features of the Agreement
• Tariff Elimination: The deal will see the immediate removal of tariffs on over 90% of Malaysia’s exports to EFTA countries, including key products like electronics, palm oil, machinery, and chemicals. In return, EFTA goods will gain greater access to Malaysian markets.
• Investment & Services: MEEPA includes robust provisions on investment protection, market access for services, and intellectual property rights, enhancing investor confidence and regulatory transparency.
• Government Procurement: For the first time, EFTA countries will gain access to Malaysia’s public procurement sector, opening the door for Swiss and other EFTA firms to participate in major infrastructure and public sector projects.
• Sustainability & Labour: The agreement features dedicated chapters on environmental protection, labour rights, and the sustainable production of palm oil, underscoring the parties’ commitment to responsible trade.
📈 Economic Impact
Malaysia’s trade with EFTA reached RM14.4 billion (approx. €2.85 billion) in 2024, with balanced flows between both sides. The agreement is expected to further boost trade in high-value sectors such as pharmaceuticals, precision instruments, renewable energy technologies, and education services.
Economists predict that the deal will drive new investments, particularly in clean technology, healthcare, and digital services, while fostering joint ventures between Malaysian and Swiss firms.
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