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EFTA - Malaysia FTA (2025)
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(i) a requirement to have a local establishment;

(ii) a requirement to partner with a subsidiary of Petroliam Nasional Berhad (PETRONAS);

(iii) a requirement, during the exploration stage, that the PETRONAS subsidiary's participating interest as a Petroleum Arrangement Contractor is "carried" at maximum of its participating interest (3); and

(3) During the exploration period, all exploration and other costs are borne by the Petroleum Arrangement Contractors other than the PETRONAS subsidiary. Consequently, upon the expiry of the carried interest period, the PETRONAS subsidiary will bear the costs of future operations in proportion to its participating interest in the production sharing contract.

(iv) a requirement that the Petroleum Arrangement Contractors may only procure goods and services from PETRONAS' List of Licensed Registered Companies (LLRC);

(e) regulations shall not be adopted or maintained that impose restrictions on mode of entry for foreign entities that seek to supply goods and services to Malaysia's upstream oil and gas sector that are more non-conforming than the following requirements:

(i) a requirement to be licensed on the PETRONAS' LLRC; and

(ii) a requirement to appoint a local as an exclusive agent, or to establish in Malaysia and form a joint venture with a local company or individual;

(f) regulations with respect to local participation requirements for equity, board of directors and senior management positions for foreign entities licensed on the PETRONAS' LLRC that seek to supply goods and services shall not be adopted or maintained that are more non-conforming than the requirements for relevant work categories listed in the existing Standardised Work and Equipment Categories for products and services; and

(g) after Malaysia negotiates and executes a contract with an operator or service supplier, non-conforming regulations shall not be applied in a manner that is inconsistent with the terms and conditions of the contract.

Measures / Source: Petroleum Development Act 1974 [Act 144]

Other Implementing Measures

LIST B

EXPLANATORY NOTES / HEADNOTE

1. This List sets out, pursuant to Article 8.4 (Reservations), the specific sectors, subsectors, or Activities, for which Malaysia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by Article 8.3 (National Treatment).

2. Each entry in this List sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Subsector, where referenced, refers to the specific subsector for which the entry is made;

(c) Description sets out the non-conforming measure for which the entry is made; and

(d) Measures where specified, identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors, or activities covered by the entry.

3. In accordance with Article 8.4 (Reservations), Article 8.3 (National Treatment) does not apply to the sectors, subsectors, and activities, identified in the Description element of that entry.

4. The Schedules of other Parties shall not be used to interpret Malaysia?s commitments or obligations under Chapter 8 (Investment), or other Chapters of this Agreement.

B.1.

Sector: Land and Real Estate

Subsector: -

Description: Acquisitions or dealings of land by non-citizens and juridical persons owned by foreign nationals must be approved by the relevant State Authority, subject to such conditions and restrictions as may be imposed by that authority.

Measures / Source: Federal Constitution

Land Acquisition Act 1960 [Act 486]

Land Conservation Act 1960 [Act 385]

National Land Code [Act 828]

Federal Lands Commissioner Act 1957 (Revised 1988) [Act 349]

National Land Code (Penang and Malacca Titles) Act 1963 [Act 518]

Strata Titles Act 1985 [Act 318]

Strata Management Act 2013 [Act 757]

Land (Group Settlement Areas) Act 1960 [Act 530] Malay Reservations Enactment 1933 [F.M.S. Cap 142] Malay Reservations Enactment 1930 [Enactment 29]

Kelantan Malay Reservations Enactment 1930 [No.18 of 1930]

Kelantan Land Settlement Act 1955 (Revised 1991) [Act 460]

The Reservations Enactment 1353 [No. 7 of 1353]

Perlis Land Settlement Enactment 1966 [No. 16 of 1966]

Johore Malay Reservation Enactment 1936 [No. 1 of 1936]

Terengganu Malay Reservation Enactment 1360 [No. 17 of 1360]

Terengganu Settlement Enactment 1356 [No. 65 of 1356]

Malay Reservations (Selangor) (Amendment) Enactment No.15/1961

Malay Reservations (Selangor) (Amendment) Enactment No.7/1985

Customary Land Enactment 1926 [Cap 215]

Customary Tenure (Lengkongan Land) Enactment 1960 [No. 4 of 1960]

Undang of Rembau (Lands) Enactment 1949 [No. 2 of 1949]

Land Ordinance [Sabah Cap 68]

Sabah Land Acquisition Ordinance [Sabah Cap 69] Sarawak Land Code 1958 [Chapter 81]

Local Government Act 1976 [Act 171]

Town and Country Planning Act 1976 [Act 172]

Federal Territory (Planning) Act 1982 [Act 267]

Federal Capital Act 1960 [Act 190]

Street, Drainage and Building Act 1974 [Act 133]

B.2.

Sector: Oil and Gas

Subsector: -

Description: Petroliam Nasional Berhad (PETRONAS) and its successor are vested with the entire ownership in, and the exclusive rights, powers, liberties, and privileges, which shall be irrevocable, in exploring, exploiting, winning, and obtaining petroleum, whether onshore or offshore of Malaysia.

PETRONAS in its role as the exclusive owner of the petroleum resources, decides on the form and conditions of contractual arrangements available for foreign participation and selection of the contract parties.

Measures / Source: Petroleum Development Act 1974 [Act 144]

Other Implementing Measures

B.3.

Sector: All

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measure affecting the:

(a) full or partial devolvement to the private sector of services provided in the exercise of governmental authority;

(b) divestment of its equity interests in, or the assets of, a juridical person that is wholly or partially owned by the Government of Malaysia; and

(c) privatisation of government-owned entities or assets.

The description above pertains only to the initial transfer or disposal of such interest, and for subsequent transfers or disposals that are for strategic sectors announced through the Malaysia Plan.

For greater certainty, where Malaysia transfers any interest in an existing state enterprise to another state enterprise, such transfer shall not be considered to be an initial transfer. Where the transfer or disposal of an interest in an existing state enterprise is undertaken either partially or sequentially, the right shall apply separately to each phase.

Measures / Source: Minister of Finance (Incorporation) Act 1957 [Act 375]

Companies Act 2016 [Act 777]

Privatisation Master Plan Guidelines on Privatisation

Bursa Listing Requirements

B.4.

Sector: All

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measure relating to Bumiputera, Bumiputera status companies, trust companies, and institutions, to meet development and social economic policy objectives.

Measures / Source: Federal Constitution

Policies and Ministerial Statements

Treasury Instructions

Treasury Circulars

New Economic Policy (NEP)

National Development Policy (NDP)

Bumiputera Development Action 2030 (TBP2030)

B.5.

Sector: All

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measure relating to national and state unit trusts. This includes unit trust schemes that are created or operated to pursue public policy objectives relating to Bumiputera or affirmative action for the socially disadvantaged.

Measures / Source:

B.6.

Sector: Manufacture, assembly, marketing and distribution of explosives, weapons, ammunitions, as well as military-related equipment / devices, and similar products

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measure affecting the arms and explosives sector.

Measures / Source: Section 4, Industrial Co-ordination Act 1975 [Act 156]

Explosives Act 1957 [Act 207]

Arms Act 1960 [Act 206]

Chemical Weapons Convention Act 2005 [Act 641]

Strategic Trade Act 2010 [Act 708]

B.7.

Sector: Gaming, Betting and Gambling including supply and suppliers of betting and gambling equipment, wholesale and retail of gambling equipment

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measures relating to the provision of gaming, betting and gambling including supply and suppliers of betting and gambling equipment, wholesale and retail.

Measures / Source: Lotteries Act 1952 [Act 288]

Common Gaming Houses Act 1953 [Act 289]

Pool Betting Act 1967 (Revised 2018) [Act 809]

Betting Act 1953 [Act 495]

Racing (Totalisator Board) Act 1961 [Act 494]

Racing Club (Public Sweepstakes) Act 1965 [Act 404]

Customs (Prohibition of Imports) Orders

Industrial Co-ordination Act 1975 [Act 156]

B.8.

Sector: Non-medical utilisation/application of atomic energy for:

(a) electric power plants based on fossil fuel or materials;

(b) nuclear power generation including nuclear fuel cycle; and

(c) electric power generation.

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measures relating to non-medical utilization or application of atomic energy for:

(a) electric power plants based on fossil fuel or materials;

(b) nuclear power generation including nuclear fuel cycle; and

(c) electric power generation.

Measures / Source: Atomic Energy Licensing Act 1984 [Act 304]

B.9.

Sector: Cultural Services

Subsector: -

Description: Malaysia reserves the right to review the following products following their importation and distribution in the Malaysian market to ensure their consistency with Malaysia's decency standards:

(a) books;

(b) magazines;

(c) periodicals or newspapers;

(d) works of art and films imported into Malaysia;and

(e) programming licensed for broadcast on television, cable and satellite stations.

In addition, prior approval is required for any arts, filming and performances by foreign artist and such activities shall comply with the Central Agency for Application for Filmall seing and Performance by Foreign Artistes (PUSPAL) Guidelines.

Such review and pre-approval shall be administered in an objective, transparent and impartial manner, and consistent, where applicable, with Article 8.3 (National Treatment) and the Communications and Multimedia Act 1998 [Act 588].

Measures / Source: Printing Presses and Publications Act 1984 [Act 301]

Akta Perbadanan Kemajuan Filem Nasional Malaysia 1981 [Act 244]

Akta Perbadanan Kemajuan Kraftangan Malaysia 1979 [Act 222]

Dasar Industri Kreatif Negara (DIKN) 2010

Central Agency Committee for Application for Filming and Performance by Foreign Artistes (PUSPAL) Guidelines

B.10.

Sector: Air Transport Services

Subsector: -

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  • Chapter   1 GENERAL PROVISIONS 1
  • Article   1.1 Objectives 1
  • Article   1.2 Scope of Application 1
  • Article   1.3 Trade Relations Governed by this Agreement 1
  • Article   1.4 Relationship to other International Agreements 1
  • Article   1.5 Central, Regional and Local Government 1
  • Article   1.6 Transparency and Confidentiality 1
  • Chapter   2 TRADE IN NON-AGRICULTURAL GOODS 1
  • Article   2.1 Scope 1
  • Article   2.2 Definitions 1
  • Article   2.3 Import Duties 1
  • Article   2.4 Customs Valuation (1) 1
  • Article   2.5 Quantitative Restrictions 1
  • Article   2.6 Rules of Origin and Methods of Administrative Cooperation 1
  • Article   2.7 Classification of Goods 1
  • Article   2.8 Fees and Formalities 1
  • Article   2.9 National Treatment on Internal Taxation and Regulations 1
  • Article   2.10 Technical Amendments 1
  • Article   2.11 Exchange of Trade Data 1
  • Article   2.12 Sub-Committee on Trade In Goods 1
  • Article   2.13 State Trading Enterprises 1
  • Article   2.14 Balance-of-Payments 1
  • Article   2.15 Trade Facilitation 1
  • Article   2.16 General Exceptions 1
  • Article   2.17 Security Exceptions 1
  • Chapter   3 TRADE IN AGRICULTURAL GOODS 1
  • Article   3.1 Scope 1
  • Article   3.2 Tariff Concessions 1
  • Article   3.3 Other Provisions 1
  • Article   3.4 Dialogue 1
  • Article   3.5 Further Liberalisation 1
  • Chapter   4 TECHNICAL BARRIERS TO TRADE 1
  • Article   4.1 Objectives 1
  • Article   4.2 Scope 1
  • Article   4.3 Incorporation of the TBT Agreement 1
  • Article   4.4 International Standards 1
  • Article   4.5 Movement of Goods, Border Control and Market Surveillance 1
  • Article   4.6 Conformity Assessment Procedures 1
  • Article   4.7 Cooperation 2
  • Article   4.8 Consultations 2
  • Article   4.9 Annexes 2
  • Article   4.10 Review Clause 2
  • Article   4.11 Contact Points 2
  • Chapter   5 SANITARY AND PHYTOSANITARY MEASURES 2
  • Article   5.1 Objectives 2
  • Article   5.2 Scope and Coverage 2
  • Article   5.3 Affirmation and Incorporation of the SPS Agreement 2
  • Article   5.4 Definitions 2
  • Article   5.5 Audits 2
  • Article   5.6 Certificates 2
  • Article   5.7 Cooperation 2
  • Article   5.8 Movement of Goods 2
  • Article   5.9 Import Checks 2
  • Article   5.10 Consultations 2
  • Article   5.11 Competent Authorities and Contact Points 2
  • Chapter   6 TRADE REMEDIES 2
  • Article   6.1 Subsidies and Countervailing Measures 2
  • Article   6.2 Anti-Dumping 2
  • Article   6.3 Global Safeguard Measures 2
  • Article   6.4 Bilateral Safeguard Measures 2
  • Chapter   7 TRADE IN SERVICES 2
  • Article   7.1 Scope and Coverage 2
  • Article   7.2 Definitions 2
  • Article   7.3 Most-Favoured-Nation Treatment 3
  • Article   7.4 Market Access 3
  • Article   7.5 National Treatment 3
  • Article   7.6 Additional Commitments 3
  • Article   7.7 Domestic Regulation 3
  • Article   7.8 Recognition 3
  • Article   7.9 Movement of Natural Persons Supplying Services 3
  • Article   7.10 Transparency 3
  • Article   7.11 Monopolies and Exclusive Service Suppliers 3
  • Article   7.12 Business Practices 3
  • Article   7.13 Payments and Transfers 3
  • Article   7.14 Restrictions to Safeguard the Balance-of-Payments 3
  • Article   7.15 General Exceptions 3
  • Article   7.16 Security Exceptions 3
  • Article   7.17 Schedules of Specific Commitments 3
  • Article   7.18 Modification of Schedules 3
  • Article   7.19 Review 3
  • Article   7.20 Consultations on Subsidies 3
  • Article   7.21 Denial of Benefits 3
  • Article   7.22 Annexes 3
  • Annex XV  Financial Services 3
  • Article   1 Scope and Definitions 3
  • Article   2 National Treatment 4
  • Article   3 Transparency 4
  • Article   4 Expeditious Application Procedures 4
  • Article   5 Domestic Regulation 4
  • Article   6 Recognition of Prudential Measures 4
  • Article   7 Transfers of Information and Processing of Information 4
  • Chapter   8 INVESTMENT 4
  • Article   8.1 Scope of Coverage 4
  • Article   8.2 Definitions 4
  • Article   8.3 National Treatment 4
  • Article   8.4 Reservations (16) 4
  • Article   8.5 Key Personnel 4
  • Article   8.6 Right to Regulate 4
  • Article   8.7 Consultations on Subsidies 4
  • Article   8.8 Transparency 4
  • Article   8.9 Payments and Transfers 4
  • Article   8.10 Restrictions to Safeguard the Balance-of-Payments 4
  • Article   8.11 General Exceptions 4
  • Article   8.12 Security Exceptions 4
  • Article   8.13 Review 4
  • Article   8.14 Denial of Benefits 4
  • Chapter   9 INTELLECTUAL PROPERTY RIGHTS 4
  • Article   9.1 Protection of Intellectual Property 4
  • Article   9.2 General Provision 4
  • Chapter   10 GOVERNMENT PROCUREMENT 4
  • Article   10.1 Scope and Coverage 4
  • Article   10.2 Definitions 5
  • Article   10.3 Security and General Exceptions 5
  • Article   10.4 National Treatment and Non-Discrimination 5
  • Article   10.5 Use of Electronic Means 5
  • Article   10.6 Conduct of Procurement 5
  • Article   10.7 Rules of Origin 5
  • Article   10.8 Offsets 5
  • Article   10.9 Information on the Procurement System 5
  • Article   10.10 Notices 5
  • Article   10.11 Conditions for Participation 5
  • Article   10.12 Qualification of Suppliers 5
  • Article   10.13 Tender Documentation 5
  • Article   10.14 Technical Specifications 5
  • Article   10.15 Modifications of the Tender Documentation and Technical Specifications 6
  • Article   10.16 Time Periods 6
  • Article   10.17 Limited Tendering 6
  • Article   10.18 Electronic Auctions 6
  • Article   10.19 Negotiations 6
  • Article   10.20 Treatment of Tenders 6
  • Article   10.21 Awarding of Contracts 6
  • Article   10.22 Transparency of Procurement Information 6
  • Article   10.23 Disclosure of Information 6
  • Article   10.24 Domestic Review Procedures for Supplier Challenges 6
  • Article   10.25 Modifications and Rectifications to Coverage 6
  • Article   10.26 Ensuring Integrity In Procurement Practices 6
  • Article   10.27 Small and Medium Enterprises Participation 6
  • Article   10.28 Cooperation 6
  • Article   10.29 Contact Points 6
  • Article   10.30 Review 6
  • Article   10.31 Transitional Measures 6
  • Chapter   11 COMPETITION 6
  • Article   11.1 General Principles 6
  • Article   11.2 Scope 6
  • Article   11.3 Cooperation 6
  • Article   11.4 Consultations 6
  • Article   11.5 Dispute Settlement 6
  • Chapter   12 TRADE AND SUSTAINABLE DEVELOPMENT 6
  • Article   12.1 Context and Objectives 6
  • Article   12.2 Scope 7
  • Article   12.3 Right to Regulate and Levels of Protection 7
  • Article   12.4 Upholding Levels of Protection In the Application and Enforcement of Laws, Regulations or Standards 7
  • Article   12.5 International Labour Standards and Agreements 7
  • Article   12.6 Multilateral Environmental Agreements and Environmental Principles 7
  • Article   12.7 Promotion of Trade and Investment Favouring Sustainable Development 7
  • Article   12.8 Women's Economic Empowerment and Trade 7
  • Article   12.9 Sustainable Forest Management and Associated Trade 7
  • Article   12.10 Trade and Climate Change 7
  • Article   12.11 Trade and Biological Diversity 7
  • Article   12.12 Sustainable Management of Vegetable Oils Sector and Associated Trade 7
  • Article   12.13 Responsible Business Conduct 7
  • Article   12.14 Cooperation on Trade and Sustainable Development 7
  • Article   12.15 Implementation and General Principles 7
  • Article   12.16 Consultations 7
  • Article   12.17 Panel of Experts 7
  • Article   12.18 Review 7
  • Chapter   13 COOPERATION AND CAPACITY BUILDING 7
  • Article   13.1 Objectives and Principles 7
  • Article   13.2 Scope 7
  • Article   13.3 Memorandum of Understanding 8
  • Article   13.4 Forms of Cooperation 8
  • Article   13.5 Costs of Cooperation 8
  • Article   13.6 Sub-Committee on Cooperation and Capacity Building 8
  • Article   13.7 Contact Points 8
  • Article   13.8 Non-Application of Dispute Settlement 8
  • Chapter   14 INSTITUTIONAL PROVISIONS 8
  • Article   14.1 Establishment of the EFTA-Malaysia Joint Committee 8
  • Article   14.2 Functions of the Joint Committee 8
  • Article   14.3 Contact Points 8
  • Chapter   15 DISPUTE SETTLEMENT 8
  • Article   15.1 Scope and Coverage 8
  • Article   15.2 Choice of Forum 8
  • Article   15.3 Good Offices, Conciliation and Mediation 8
  • Article   15.4 Consultations 8
  • Article   15.5 Request for Establishment of the Arbitration Panel 8
  • Article   15.6 Terms of Reference 8
  • Article   15.7 Composition of the Arbitration Panel 8
  • Article   15.8 Procedures of the Arbitration Panel 8
  • Article   15.9 Arbitration Panel Reports 8
  • Article   15.10 Suspension or Termination of Proceedings 8
  • Article   15.11 Implementation of the Final Report 8
  • Article   15.12 Compensation and Suspension of Benefits 8
  • Article   15.13 Other Provisions 8
  • Article   15.14 Language 8
  • Chapter   16 FINAL PROVISIONS 9
  • Article   16.1 Annexes and Appendices 9
  • Article   16.2 Amendments 9
  • Article   16.3 Accession 9
  • Article   16.4 Withdrawal and Expiration 9
  • Article   16.5 Entry Into Force 9
  • Article   16.6 Depositary 9
  • ANNEX XVIII  REFERRED TO IN ARTICLE 8.4. INVESTMENT RESERVATIONS 9
  • APPENDIX 1  REFERRED TO IN ARTICLE 8.4. RESERVATIONS BY MALAYSIA 9
  • LIST A 9
  • LIST B 10
  • APPENDIX 2 TO ANNEX XVIII  REFERRED TO IN ARTICLE 8.4 (RESERVATIONS) RESERVATIONS BY ICELAND 11
  • APPENDIX 3 TO ANNEX XVIII  REFERRED TO IN ARTICLE 8.4 (RESERVATIONS) RESERVATIONS BY LIECHTENSTEIN 12
  • APPENDIX 4 TO ANNEX XVIII  REFERRED TO IN ARTICLE 8.4 (RESERVATIONS) RESERVATIONS BY NORWAY 12
  • APPENDIX 5 TO ANNEX XVIII  REFERRED TO IN ARTICLE 8.4 (RESERVATIONS) RESERVATIONS BY SWITZERLAND 13
    • Name
    EFTA - Malaysia FTA (2025)
    PDF Link
    EFTA - Malaysia FTA (2025)
    Signed date
    23 / Jun / 2025
    Treaty type
    Other International Investment Agreements
    Origin language
    en
    Party ISO codes
    EFTA,MYS
    Relationship with other documents
    Type Agreements Date of signature Date of entry in force
    IT_OVERLAP Malaysia - Switzerland BIT (1978) 01 / Mar / 1978 09 / Jun / 1978
    IT_OVERLAP Investment Facilitation for Development (2024)
    IT_OVERLAP Malaysia - Norway BIT (1984) 06 / Nov / 1984 07 / Jan / 1986
    IT_OVERLAP OECD Code of Liberalisation of Capital Movements (1961) 12 / Dec / 1961 12 / Dec / 1961
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