EFTA pact key to drive Malaysia's export resilience, competitiveness: FMM
KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) says the country's European Free Trade Association (EFTA) economic partnership agreement is a crucial move to strengthen the nation's export resilience and competitiveness.
The agreement, covering all industrial products, provides duty-free access for over 90 per cent of Malaysia's exports to the four EFTA countries - Switzerland, Norway, Iceland and Liechtenstein.
FMM president Tan Sri Soh Thian Lai said the pact is timely amid growing global economic uncertainties.
"This is an important agreement to support the robust growth and resilience of Malaysian manufacturers amidst intensifying global uncertainties and recent geopolitical shifts," he said in a statement.
He added that agreement offers more than tariff elimination, incorporating commitments to green mobility, digitalisation and innovation - factors that can attract high-tech investments into Malaysia.
"FMM believes that agreement will give Malaysian manufacturers a competitive advantage and a stable route into high-value European markets, helping to reduce exposure to global economic disruptions and support long-term growth," Soh added.
Additionally, the agreement is expected to benefit small and medium enterprises through broader preferential access and duty-free entry into European markets.
The agreement was inked in Oslo, and with Malaysia's total trade with EFTA countries reaching RM14.4 billion in 2024, it is seen as a strategic boost for the manufacturing sector.
Tapping into the EFTA bloc, manufacturers will be able to drive innovation, enhance export performance, and strengthen their position within resilient global supply chains, aligning with Malaysia's broader economic transformation goals.
"FMM encourages the industry to fully leverage the opportunities under this agreement and remains committed to supporting businesses in making the most of this important trade framework," Soh said.
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