SWITZERLAND KEEN TO INTENSIFY TRADE RELATIONS WITH ASEAN

By Manik Mehta

ZURICH, July 5 (Bernama) -- Switzerland is keen to expand its economic
and trading ties with the Association of Southeast Asian Nations (Asean).

Asean, as many Asia-centric experts in Switzerland will tell you, is the
third biggest collective market, after China and India, for Swiss products which
range from high-precision tools, machinery and watches to food products such as
chocolates and cheese.

In and around Zurich, where many industrial companies dealing with Asia are
located, there is a lot of "excitement" over next week's state visit of the
President of the Swiss Confederation, Doris Leuthard, to Indonesia (July 6-8)
and thereafter (July 9), for a "simple working visit" to Singapore.

The significant feature of the visits is that, it is not just important
protocol-wise.

Since Leuthard is accompanied by a high-profile economic delegation, the
visit assumes a much more tangible significance, as it is expected to set the
pace for greater trade and investment flows in both directions.

Swiss manufacturers are willing to invest in the Asean region, employing the
strategy of "operating from within the market", rather than just manufacturing
in Switzerland and exporting to it.

This approach can also greatly benefit Malaysia if its overseas MIDA and
MATRADE offices make the right sounds and approach, vis-à-vis Swiss companies
and trade associations, that might be looking to identify suitable projects in
the region.

Malaysia's Kulim Hi-Tech Industrial Park can be an attractive venue for
setting up operations for Swiss companies.

The example of German companies that have set up plants in Kulim can also be
used as the basis to drive home the point of its attractive features, including
tax benefits, availability of raw materials and qualified workers as well as,
access to markets in the ASEAN region.

Leuthard is visiting Indonesia because of its size and for increasingly
pitching itself as an "Asean hub" in a number of Western countries.

The Swiss head of state has also lined up meetings with Indonesia's trade
minister and other ministers as well. This reflects Switzerland's keen interest
in intensifying its economic and trading ties with Indonesia.

Leuthard is also expected to lay the groundwork for subsequent talks on
an economic partnership agreement between the European Free Trade Association
(EFTA), of which Switzerland is a member, and Indonesia.

The Swiss Economics Ministry has been closely monitoring the ratings given
by independent agencies to Indonesia, the world's largest Muslim nation, which
is forecast to post an impressive growth in the future.

In 2009 Switzerland's exports to Indonesia amounted to 372 million Swiss
francs (US$349.5 million) while imports from the country were around 171 million
Swiss francs (US$160.65 million)

Leuthard's visit to Singapore will also have a strong economic component, as
evident from her planned meetings with the finance and trade ministers as well
as the Chairman of Singapore's central bank.

Singapore is Switzerland's most important trading partner in Southeast Asia.

Switzerland exported last year goods worth over two billion Swiss francs
(US$1.87 billion) to Singapore while imports from the island-state amounted to
614 million Swiss francs (US$576.85 million).

The Swiss are privately prepared to have Singapore urge that the country
buys more Singaporean products, so as not to create an "institutionalised
imbalance", in bilateral trade.
-- BERNAMA


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