Switzerland to Deepen Ties with Malaysia in Trade, Sustainability, Security - Swiss Ambassador
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Nov 7 (Bernama) -- Switzerland, which is located in the heart of Europe, is set to strengthen bilateral ties with Malaysia in key areas, including trade, sustainability, and peace and security.
This approach is designed to build on the European country’s ongoing Southeast Asia Strategy covering the period from 2023 to 2026, Swiss Ambassador to Malaysia Chantal Moser told Bernama recently in an interview.
She said this also reflects Bern’s long-term commitment to strengthening economic ties, which include promoting sustainable development and supporting multilateral cooperation.
She said, “The Swiss government is looking at securing the right framework conditions for our economy and our companies to operate in the different markets.”
To this end, she said, “We have signed the Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement (MEEPA), which deals with the economic relations between Switzerland and Malaysia.”
Moser said the three key priority areas also encompass Switzerland’s collaboration with ASEAN, which includes broader themes such as climate change and disaster risk management, vocational education and training, and dialogue on human rights.
For next year, she said the Swiss government is working on the ratification process of the MEEPA, as well as the renewal of the South-East Asia Strategy beyond 2026 as a continuation of the 2023-2026 framework.
Despite its central location, Switzerland is not part of the European Union to maintain its sovereignty and autonomy, but its economy is closely intertwined with the European single market.
Moser said Switzerland will continue to advance its sustainability agenda with Malaysia through closer collaboration in clean energy and sustainable production.
This includes supporting the Jurisdictional Approach for Sustainable Palm Oil project in Sabah -- an initiative backed by the Swiss State Secretariat for Economic Affairs and implemented by the United Nations Development Programme, which promotes sustainable palm oil production through multi-stakeholder engagement.
Malaysia, Switzerland to modernise investment pact
Turning to two-way investment linkages, she said Switzerland and Malaysia are currently negotiating to modernise the bilateral investment protection agreement, which has been in place since 1978.
These negotiations are progressing well, with both countries positive that the agreement could be concluded in the near future.
“A bilateral investment protection agreement improves legal security and the investment climate, as well as enhances the attractiveness of a country as a location for international investments.
“Therefore, I expect that a modernised agreement will enhance bilateral investment flows in the mid- and long-term,” she noted.
She said the agreement is an important instrument to support the confidence of potential investors, complementing the recently signed FTA between Malaysia and the EFTA states, which include Switzerland, Liechtenstein, Iceland, and Norway.
It is difficult to predict or highlight which sectors will most benefit under this agreement, but Moser expressed confidence that Switzerland’s main export sectors to Malaysia, such as pharmaceuticals and chemicals, machinery, electrical and electronics, and instruments of precision, will benefit from the modernisation of the agreement.
The Swiss envoy said these economic exchanges would also provide opportunities for small and medium enterprises from Switzerland, not just large companies, to explore the potential of the Malaysian market.
“There could be a wide range of sectors involved, as our economy is very diverse and they may find opportunities in Malaysia in areas such as clean energy, digital industry and services,” she said.
Malaysia’s attractiveness to Swiss companies
Malaysia’s relative political stability has contributed to bolstering the confidence of Swiss companies to seek investment opportunities here, while its strategic geographical location and potential to serve as a regional manufacturing hub are additional attractions.
“It is not only about bilateral trade between Switzerland and Malaysia, but also about having a presence here to cover the wider region.
“Of course, Malaysia offers many positive elements, such as excellent infrastructure, a skilled and talented workforce, and English proficiency,” she said.
Malaysia and Switzerland established diplomatic relations in 1963.
Switzerland is the sixth-largest investor in Malaysia, while Malaysia ranks as the second most popular destination for Swiss investors in Southeast Asia after Singapore.
-- BERNAMA
