Swiss companies set to do more Asian business

Joseph Deiss flies on to his next destination to promote Swiss businesses Keystone

The Swiss economics minister, Joseph Deiss, is in southeast Asia with the aim of creating a new hub for small- and medium-sized Swiss companies.

Deiss also intends to use his visit to help kickstart the economy in the Indonesian province of Aceh – the region worst affected by the tsunami disaster.

Deiss made his first stop in Singapore, which is considered a key business centre for Switzerland. “There are more Swiss companies in Singapore than any other country in Asia,” the economics minister told swissinfo.

On Friday, he was to open a “Swiss Business Hub” there which is to be operated by the Swiss embassies in the region.

The aim is to ease access for small- and medium-sized enterprises (SMEs) to the markets of the ten countries of the Association of South East Asian Nations. Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam all belong to Asean.

Singapore was the obvious choice for the centre since most Swiss firms have their regional headquarters in the city-state.

Most important

“Singapore is also our most important trading partner in this part of the world. Since 2003, we’ve had a free-trade agreement with the country,” Deiss said.

He said Switzerland had found hubs to be a good platform for SMEs, since opening its first one in Austria in 2001.

“They are a door opener for companies wanting to enter new markets but without necessarily having the means to go it alone,” Deiss added.

He described the hubs as a central pillar of Switzerland’s export promotion policy. The number of contacts created through the business centres has more than doubled since 2001.

“There is a demand [for such platforms],” Deiss commented.

The economics minister said he also wanted to convince Asian businesses to set up shop in Switzerland.

“We are well positioned for companies to locate their headquarters because of the large number of double-taxation agreements [signed with other countries],” Deiss said.

He cited Switzerland’s position in the middle of Europe, excellent transport and communications networks and high quality of life as other advantages.

“It’s certainly not a punishment for a firm’s staff to be relocated here,” he said.

Economic recovery

From Singapore, Deiss will travel to the Indonesian province of Aceh to get an impression of reconstruction efforts in the tsunami-hit region.

“In our opinion, we’re entering a phase where it’s important to ensure that the economy recovers.”

During his visit, he will launch two economic development projects, the “Aceh Business Support Programme” and “Access to Finance for SMEs in Indonesia”, to provide SMEs with easier access to credit.

Besides aid, the goal is to strengthen Switzerland’s economic ties with Indonesia, the country with the world’s fourth largest population.

“It’s a good idea to start building a strong relationship [with Indonesia] as soon as possible,” said Deiss.

swissinfo, Christian Raaflaub

In brief

Economics minister, Joseph Deiss, is to open the Swiss Business Hub Asean during his stay in Singapore.

This is a partner of the export promotion organisation, Osec Business Network Switzerland, and is a service provider for Swiss SMEs interested in doing business in the region.

Deiss will launch two projects in Indonesia in order to ease access to bank credits for Indonesian SMEs.

Key facts

Deiss is on a five day trip to Singapore and Indonesia, ending on April 11.
Singapore is Switzerland’s most important trading partner in southeast Asia.
In 2003, 2% of the total of Swiss investments (SFr8.64 billion) went to the city state.
Around 250 Swiss companies are active in Singapore.