Switzerland and Malaysia Forge Stronger Economic Ties with New Free Trade Agreement
Table of Contents
- Switzerland and Malaysia Forge Stronger Economic Ties with New Free Trade Agreement
- Boosting Trade and Investment: The EFTA-malaysia Agreement
- Malaysia: A Key Investment Hub in Southeast Asia
- thorough agreement: Beyond Trade in Goods
- Malaysia’s Thriving Economy: Opportunities for Swiss Innovation
- Swiss Exports to Malaysia: A Focus on Pharmaceuticals and Technology
- Malaysian Imports to Switzerland: Electronics Lead the Way
- Looking Ahead: Strengthening Bilateral Ties
Boosting Trade and Investment: The EFTA-malaysia Agreement
A new free trade agreement (FTA) between the European Free Trade Association (EFTA), of which Switzerland is a member, and Malaysia, finalized on April 11th, is poised to significantly enhance economic cooperation between the two regions. This agreement builds upon already substantial trade relations, with goods exchanged between Switzerland and Malaysia exceeding CHF 1.4 billion in 2024, according to Economiesuisse.
Malaysia: A Key Investment Hub in Southeast Asia
Malaysia stands out as a prime destination for Swiss investment within Southeast Asia, second only to singapore. As of 2022, direct investments from Switzerland reached CHF 3.4 billion,highlighting the existing strong economic interest.
thorough agreement: Beyond Trade in Goods
The FTA encompasses a wide range of areas, including trade in goods and services, intellectual property rights, rules of origin, measures to reduce trade barriers, investment promotion, and collaborative ventures. Notably, the agreement pioneers easier access to public procurement markets, a first for an EFTA agreement with an Asian nation. This opens up important opportunities for Swiss companies to bid on Malaysian government contracts.
Malaysia’s Thriving Economy: Opportunities for Swiss Innovation
Malaysia’s economy is heavily driven by industry, particularly the semiconductor sector. This FTA presents new export possibilities for Switzerland, especially in the realm of emerging technologies. Furthermore,Malaysia boasts a modern infrastructure,a skilled English-speaking workforce,and abundant mineral resources,including tin,bauxite,copper,and iron,creating a favorable environment for new investments. For example, the Malaysian Investment Development Authority (MIDA) reported a 68% increase in approved investments in the manufacturing sector in 2024, signaling strong growth potential.
Swiss Exports to Malaysia: A Focus on Pharmaceuticals and Technology
In 2024, Swiss exports to Malaysia approached CHF 806 million. The chemical-pharmaceutical industry accounted for over half (58%) of these exports, followed by machinery and electronic devices, which represented 29%. This demonstrates the strength of Swiss innovation and manufacturing in these key sectors.
Malaysian Imports to Switzerland: Electronics Lead the Way
During the same period, Switzerland imported approximately CHF 640 million worth of goods from Malaysia.Machinery and electronic devices constituted the majority (over 58%) of these imports, with precision instruments and watches following at a considerable distance (13%), as reported by the Federal Office of Customs and Border Security (BAZG). This highlights Malaysia’s role as a key supplier of electronic components to Switzerland.
Looking Ahead: Strengthening Bilateral Ties
this free trade agreement is expected to further solidify the economic partnership between Switzerland and Malaysia, fostering increased trade, investment, and collaboration across various sectors. The agreement’s comprehensive nature and focus on innovation position both countries for sustained economic growth and prosperity.