Text Summary Metadata Send a comment
EFTA - Malaysia FTA (2025)
Previous page Next page

Description:

Malaysia reserves the right to adopt and maintain any measure affecting:

(a) airport operation services;

(b) aircraft repair and maintenance services;

(c) ground handling services;

(d) specialty air services; and

(e) air transport services covering passenger and freight transportation frequencies and routing by air.

Measures / Source:

B.11.

Sector: Manufacturing and services incidental to manufacturing

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measure relating to the manufacture of, and services incidental to manufacturing of:

(a) rice;

(b) sugar;

(c) flour;

(d) liquor and alcoholic beverages;

(e) tobacco, manufactured tobacco substitutes, cigarettes products, including e-cigarettes, similar apparatus or devices, and components and liquids used for e-cigarettes, similar apparatus or devices;

(f) biodiesel; and

(g) cement and cement products.

Measures / Source: Excise Act 1976 [Act 176]

Free Zones Act 1990 [Act 438]

Industrial Co-ordination Act 1975 [Act 156]

Policies and Ministerial Statements

Administrative Guidelines

B.12.

Sector: Mining and quarrying

Subsector: -

Description: Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and subject to such conditions and restrictions as may be imposed by the relevant state authority. Joint ventures with state or state-linked juridical persons may be required.

Measures / Source: Mineral Development Act 1994 [Act 525]

State Mineral Laws

National Mineral Policy 2

B.13.

Sector: Agriculture

Subsector: -

Description: Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and are subject to such conditions and restrictions as may be imposed by the relevant state authority.

Measures / Source: National Land Code [Act 56 of 1965]

Sarawak Land Code 1958 [Cap 81]

Sabah Land Ordinance 1950 [Cap 68]

Town and Country Planning Act 1976 [Act 172]

Plant Quarantine Act 1976 [Act 167]

Animals Act 1953 [Act 647]

Animal Enactment 2015

National Agricultural Policy

Customs Prohibition of Imports and Exports Orders

Administrative Guidelines

B.14.

Sector: Forestry

Subsector: -

Description: Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and are subject to such conditions and restrictions as may be imposed by the relevant state authority.

Extraction and harvesting of timber are closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, local involvement and majority local control are required. Forest areas opened for such activities are subject to an Annual Allowable Cut to enable the resources to be managed sustainably.

Services incidental to extraction and harvesting of timber are closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, the maximum foreign equity ownership allowed is 30 per cent.

Measures / Source: National Forestry Act 1984 [Act 313]

Sabah Forest Enactment 1968 [No. 2 of 1968]

Sarawak Forest Ordinance 2015 [Cap. 71]

State Forestry Laws

Administrative Guidelines

International Trade in Endangered Species Act 2008 [Act 686]

Wildlife Conservation Act 2010 [Act 716]

Malaysia Policy on Forestry 2021

Malaysia Timber Industry Board (Incorporation), Act 105

B.15.

Sector: All

Subsector: -

Description: Malaysia reserves the right to adopt or maintain any measure related to the non-internationalisation of the Ringgit which includes:

(a) the requirement for international settlement to be made in foreign currency;

(b) limitation on the access to Ringgit financing by non-residents for use outside Malaysia; and

(c) limitation on the use of the Ringgit in Malaysia by non-residents.

Measures / Source: Central Bank of Malaysia Act 2009 [Act 701]

Financial Services Act 2013 [Act 758]

Islamic Financial Services Act 2013 [Act 759]

Foreign Exchange Notices

B.16.

Sector: All

Subsector: -

Description: The purchase of a financial service by a resident from a financial service supplier abroad shall be subject to the requirements, restrictions, and conditions imposed under the Foreign Exchange Notices.

Measures / Source: Central Bank of Malaysia Act 2009 [Act 701] Financial Services Act 2013 [Act 758]

Islamic Financial Services Act 2013 [Act 759]

Foreign Exchange Notices

APPENDIX 2 TO ANNEX XVIII. REFERRED TO IN ARTICLE 8.4 (RESERVATIONS) RESERVATIONS BY ICELAND

1 -

Sector: All sectors

Sub-sector:

Legal source or authority of the measure:

Law No. 138/1994 Respecting Private Limited Companies, Law No. 2/1995 Respecting Public Limited Companies, Law No. 34/1991 on Investment by Non-Residents in Business Enterprises.

Succinct description of the measure:

The majority of the founders, the manager(s) and at least half the board of directors, of a private limited company or a public limited company must either be resident in Iceland, in another member state of the European Economic Area (EEA), in another EFTA State or in the Faroe Islands. (1)

The Minister of Commerce can grant exemptions from these restrictions.

Purpose or motivation of the measure:

To secure that the legal venue of the majority of the board of directors and managers is within Icelandic jurisdiction.

(1) The exclusion of the residency criteria for residents of an EEA Member State, an EFTA State or the Faroe Islands is not a reservation on national treatment, but the sentence is included to give an exhaustive description of the measure.

2 -

Sector: All sectors

Sub-sector:

Legal source or authority of the measure:

Law No. 19/1966 on the Right to Own and Use Real Estate, Law No. 34/1991 on Investment by Non-Residents in Business Enterprises.

Succinct description of the measure:

Only Icelandic citizens and Icelandic legal entities and citizens and legal entities from another member state of the EEA, another member state of the EFTA or from the Faroe Islands are allowed to own real estate in Iceland unless the ownership and use is linked to an investment in real estate pertaining to the business activity of the investor. (2)

The same applies to the hiring of a real estate if the duration of the lease lasts for more than 3 years. These restrictions do not apply to a non-EEA citizen who has been residing in Iceland for at least five years.

The Minister of Justice can grant exemptions from these restrictions.

Purpose or motivation of the measure:

Fluctuations in real estate prices due to possible excess foreign demand can adversely affect the domestic market for housing and summer houses (secondary homes).

(2) The exclusion of citizenship and legal entity criteria for residents of an EEA Member State, an EFTA State or the Faroe Islands is not a reservation on national treatment, but the sentence is included to give an exhaustive description of the measure.

3 -

Sector: Fisheries

Sub-sector: Fishing, whaling

Legal source or authority of the measure:

Law No. 22/1998 on the Fishing and Fish processing of Foreign Vessels in Iceland?s Economic Zone, Law No. 34/1991 on Investment by Non-Residents in Business Enterprises, Law No. 26/1949 on Whaling.

Succinct description of the measure:

Only the following may conduct fishing operations within the Icelandic fisheries jurisdiction:

(a) Icelandic citizens and other Icelandic persons;

(b) Icelandic juridical persons which are wholly owned by Icelandic persons or Icelandic juridical persons which:

(i) are controlled by Icelandic entities;

(ii) are not under more than 25% ownership of foreign residents calculated on the basis of share capital or initial capital. However, if the share of an Icelandic juridical person in a juridical person conducting fishing operations in the Icelandic fisheries jurisdiction or fish processing in Iceland is not above 5%, the share of the foreign resident may be up to 33%;

(iii) are in other respects under the ownership of Icelandic citizens or Icelandic juridical persons controlled by Icelandic persons.

Purpose or motivation of the measure:

The relative economic importance of the fishing industry for Iceland, with fish and fish products constituting a substantial share of the country's foreign earnings, as well as Iceland's determination to maintain a sustainable yield from its fishing stocks. The control and surveillance regarding the preservation of Icelandic fish stocks needs to be under Icelandic jurisdiction.

4 - 

Sector: Fisheries

Sub-sector: Fish Processing

Legal source or authority of the measure:

Law No. 34/1991 on Investment by Non-Residents in Business Enterprises.

Succinct description of the measure:

Only the following may own or run enterprises engaged in fish processing in Iceland:

(a) Icelandic citizens and other Icelandic persons;

(b) Icelandic juridical persons which are wholly owned by Icelandic persons or Icelandic juridical persons which:

(i) are controlled by Icelandic entities;

(ii) are not under more than 25% ownership of foreign residents calculated on the basis of share capital or initial capital. However, if the share of an Icelandic juridical person in a juridical person conducting fishing operations in the Icelandic fisheries jurisdiction or fish processing in Iceland is not above 5%, the share of the foreign resident may be up to 33%;

(iii) are in other respects under the ownership of Icelandic citizens or Icelandic juridical persons controlled by Icelandic persons.

Fish processing in this context is freezing, salting, drying and any other process used to initially preserve fish and fish products, including melting and meal processing. This reservation does not apply to secondary fish processing.

Purpose or motivation of the measure:

The reservation on fish processing is an integral part of retaining control in the field of fishing and whaling. The relative economic importance of the fishing industry for Iceland, with fish and fish products constituting a substantial share

of the country?s foreign earnings, as well as Iceland?s determination to maintain a sustained yield from its fishing stocks. The control and surveillance regarding the preservation of Icelandic fish stocks needs to be under Icelandic jurisdiction.

5 -

Sector: Fisheries

Sub-sector: Fish Auctioning

Legal source or authority of the measure:

Law No. 79/2005 on the Auctioning of Fish.

Succinct description of the measure:

Only Icelandic citizens and Icelandic legal entities and citizens and legal entities from another member state of the EEA, from another member state of the EFTA or from the Faroe Islands are allowed to own and manage enterprises engaged in fish auctioning in Iceland. (3)

Purpose or motivation of the measure:

The reservation on fish auctioning is an integral part of retaining control in the field of fishing and whaling. The relative economic importance of the fishing industry for Iceland, with fish and fish products constituting a substantial share of the country's foreign earnings, as well as Iceland?s determination to maintain a sustained yield from its fishing stocks. The control and surveillance regarding the preservation of Icelandic fish stocks needs to be under Icelandic jurisdiction.

Previous page Page 11 Next page
  • 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
    PDF
    PDF
    Original PDF
    Original PDF