Malaysia offers a compelling alternative for companies in the European Free Trade Association (EFTA) compared to regional players like China, Singapore and Vietnam, said a Swiss parliamentarian today.
The EFTA consists of four countries – Iceland, Liechtenstein, Norway and Switzerland. It was founded in 1960 and promotes free trade and economic integration among its members.
Thomas Aeschi, head of the Swiss delegation from EFTA’s parliamentary committee, said many Swiss firms are exploring opportunities in Malaysia and considering expanding their presence.
“China promotes localised production for its domestic market, but exporting from China has become increasingly difficult. In contrast, Malaysia presents a great alternative,” he said at a press conference here today.
“Malaysia is also more cost-effective than Singapore and more advanced than Vietnam, placing it in a unique position.”
Grimur Grimsson, chairman of the EFTA parliamentary committee and head of the Icelandic delegation, said Malaysia’s neutral foreign policy gives it strategic value as a trade partner amid the ongoing US-China tensions.
“Malaysia maintains good relations with both China and the US, and this balanced approach will support its continued prosperity,” Grimsson said.
He said discussions with Malaysian trade officials revealed shared concerns about rising global uncertainty.
“The current geopolitical climate will impact global trade, and no country will be immune,” he said.
Earlier this month, the investment, trade and industry ministry announced that a free trade agreement will be signed with the EFTA in June. The deal will grant Malaysia zero-import duties into EFTA member countries.
Investment, trade and industry minister Tengku Zafrul Aziz said the Malaysia-EFTA Economic Partnership Agreement (Meepa) provides long-term clarity and stability, especially amid uncertainty over US tariffs.
Meepa will replace Malaysia’s existing trade arrangement under the EFTA’s temporary Generalised System of Preferences, making the removal of import duties permanent.
Swiss investment protection agreement in progress
Aeschi also said Switzerland is in talks with Malaysia on a new investment protection agreement expected to be signed this year.
“The next step is for the Swiss executive branch to submit a formal message to Parliament, where it will be debated in both chambers,” he said, expressing confidence that the agreement will be approved by a large majority.
However, he cautioned that Switzerland’s democratic process allows 50,000 citizens to demand a referendum, an option that delayed a similar agreement with Indonesia.
Currently, Malaysia and Switzerland are bound by a bilateral investment treaty signed in 1978 which ensures fair treatment and full protection for each country’s investors.
