Diplomatic relations between Sweden and Malaysia were established in 1958. Sweden has an embassy in Kuala Lumpur, and Malaysia has an embassy in Stockholm. As of 2009, 90 Swedish companies are present in Malaysia and about 450 Swedish citizens live in Malaysia. In 2011, 44,138 Swedish nationals visited Malaysia.
Malaysia and Sweden have in place a bilateral agreement concerning the mutual protection of investments signed at Kuala Lumpur on 3 March 1979. There is an agreement between the Government of the Kingdom of Sweden and the Government of Malaysia for Air Services between and beyond their respective territories, signed at Kuala Lumpur on 19 October 1967. The countries also have in place a bilateral agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
Kidnapping and imprisonment
In 1975, members of the Japanese Red Army kidnapped Swedish Chargé d'Affaires Fredrik Bergenstråhle and his secretary Ulla Ödqvist in Kuala Lumpur. One of the Malaysian officials, Tan Sri Osman S. Cassim, was later awarded the insignia of Commander of the Royal Order of the Polar Star by Sweden for his actions during the rescue.
In 2014, the Stockholm director of the Malaysian tourist board and his wife were held in custody for over a month, and their four children allocated to non-Muslim foster parents, after the couple were accused of using corporal punishment on their 12-year-old son for refusing to say his prayers. The practice is outlawed in Sweden.
Between January and July 2012, bilateral trade stood at 2 billion MYR, increased from the trade at 1.9 billion MYR between January and June 2011 In September 2012, Malaysian Ambassador to Sweden, Datuk Badruddin Ab Rahman, said about 120 Swedish companies operate in Malaysia, with an investment of more than 10 million MYR, however there are no Malaysian companies operating in Sweden. The Malaysian embassy in Sweden makes programmes to attract Swedish businesses to Malaysia such as a briefing on investment opportunities in Malaysia.
In 2006, Swedish exports to Malaysia totalled approximately 1.6 billion MYR and the imports from Malaysia approximately 0.7 billion MYR. Swedish exports to Malaysia consist of telecommunication equipment, motor vehicles, chemical products, power generating machinery and equipment, machines, paper, as well as iron ore and steel. Swedish imports from Malaysia electronics and electrical components, machinery and apparatus, textiles, palm oil and raw rubber.
Volvo operates a wholly owned subsidiary in Malaysia that manufactures trucks. Until 2016, Swedish investors have recorded 90 manufacturing projects worth US$729.19 million in Malaysia and generated 5,800 jobs at various levels.
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- Agreement between the European Community and the Government of Malaysia on certain aspects of air services
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