News Bulletin Volume 1-4 2011

8/4/2019 News Bulletin Volume 1-4 2011

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EVENTS: Economic Outlook 2011

AirAsia Academy Visit

12th Annual General Meeting

NEW MEMBER

ARTICLE FROM THE EMBASSY

News Bulletinan electronic News Bulletin published by the Swiss Malaysian Business Association, SMBA, for its members

Volume I.4 (2011)

New Chairman,Arno Thny (left)

New Vice Chairman,

Thomas Guldimann (right)


2/21

Once again and like for the past four years,

the SMBA was honored to welcome Credit

Suisse to sponsor the Economic Outlook

2011, also it was an honor that the presentation for the third time was

presented by their Chief Economist for

Asia, Mr. Joseph Tan.

The event took place at the Melia Hotel on January

26th and was attended by 40 peoples!

The Chairman, Mr. Heinz Bauert gave a small

introduction. He also introduced the new Ambassador

to Malaysia H.E. Dr. Rolf Lenz, who just arrived about

two weeks ago in Kuala Lumpur.

The Chairman also thanked Credit Suisse and inparticular Mr. Denis Poo for their continuous support

towards the SMBA.

Mr. Joseph Tan thanked the Chairman and opened his

presentation with some pointers; three distinct

economic realities;

1. USA putting the economy on steroids

2. Europe: Austerity medicine

3. Emerging Markets: The global growth engine

He went on to explain the current economic situation

in the US and their subsequent consequences for us

here in Asia. (Slide 7)

Also the macro policy of the US government will have

significant consequences for the economies in Asia. He

went on to explain that actually with the current

economic crisis with some of the European countries,

Asia is actually minimally exposed, if one looks atExports from Asia to Euro zone and the other

European countries. (Slide 10)

Mr. Heinz Bauert

Mr. Joseph Tan

Economic Outlook 2011

SMBA News Bulletin


3/21

EconomicO

utlook2011

On another slide he pointed out that Asian

governments have very strong fiscalpositions in comparison to US and Europe.

(Slide 11) This makes the economies here far

more resilient. Also more and more the inter

Asian trade is getting far more significant

then lets say a couple of years back. (Slide

15)

Within Asia the domestic demand is a key

pillar to drive Asian growth. (Slide 14) Thedomestic demands in certain countries have

grown dramatically, especially for example

in China.

SMBA News Bulletin

One mayor risk in Asia is with the current Currency wars an inflation risk. (Slide 23 & 24)

Malaysia for instance he explained is far less exposed then for instance Indonesia but one

should not forget that certain key commodities here (Malaysia) are government controlled.


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Mr. Tan went on to explain the sharp increase in sales of residential buildings as well as their

prices in China bears a risk and could create a bubble. The Chinese Government is very much

aware of that and will try to calm down the markets, since a bubble would have significant

consequences for the rest of Asia.

EconomicO

utlook2011

On Slide 28, he went on to explain the significant increase in Currency reserves hold by all

major Asian Governments.

Obviously the currency war between the US & Chinese Governments could also affect our

economies here. Hence more creative measures have to be implemented to mange capital

flows. (Slide 30)

On the other side Asian currencies will actually gain due to rates, flows and CNY. But also due

to inter Asian trade. Slide 32. Credit Suisse predicts that key markets will price the US/CNY at

6.45 in the next 12 months. Hence all Asian currency will get stronger in the short term. Slide

34

SMBA News Bulletin


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EconomicO

utlook2011

At the end Mr. Tan explained the outlook for

Malaysia in the view of CS, where they see a

strong economy, a good and strong

economical leadership, their main problem

will be how to tackle the huge Government

subsidies on price controlled commodities.

In the long run CS is of the opinion that the

Government has to take a firm policy to

totally abolish all the subsidies.

Another risk for Malaysia is the currency;

which is linked indirectly to the US dollar.

But overall the Malaysian economy doingwell compared to other economies, the only

risk for an investor would be the political

uncertainty, as when the Prime Minister will

announce General elections.

At the end Mr. Tan replied some questions

from the crowd mainly related to the

European crisis and the outlook on China.

SMBA News Bulletin

The Chairman closed the event by announcing the next event and thanking the speaker and

Credit Suisse once again for sponsoring the event. A memento was presented to the speaker,

who had to rush to the airport immediately after his presentation.

The participants were served canaps and finger food with free flow of beer and soft drinks

sponsored by Credit Suisse.

Article written by Thomas Guldimann


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A visit to the

AirAsia Academy

On the 19 February 2011, approximately 25

members visited the AirAsia Academy situated in

Sepang, Selangor.

AirAsia is the low cost carrier giant that has grown

in the past 9 years to become the 4th largest

airline in Asia in 2010 by carrying 29 million

passengers per year. With a short history of 9 years

since Dec 2001, AirAsia has grown from 2 planes to

103 aircraft across 4 countries.

The AirAsia Academy produces all of pilots,

engineers, ground staff and flight attendants for

the operations. All of the graduates are certified by

the respective ASEAN Civil Aviation Authorities

including Malaysia's DCA.

SMBA News Bulletin


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The SMBA members were briefed on AirAsia by our

own committee member, Mr. Zaman Ahmad who is

also the Regional Head for Customer Experience for

AirAsia. A tour was conducted by the Academy staff

and the highlight was the aircraft simulator tour

where SMBA members experienced first hand the

simulator procedure that completed a take off,

cruising and landing in 10 minutes for the AirbusA320.

AirAsiaAc

ademyVisit

Mr. Liew Kang Hwa,

whos our tour guide for the day

Mr. Zaman Ahmad,

Regional Head for

Customer Experience for AirAsia

SMBA News Bulletin


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After the exciting simulator experience, the SMBA

members were treated to lunch with AirAsia's variety

of meals that are also available onboard.

The visit ended at approximately 3pm.

AirAsiaAc

ademyVisit

SMBA News Bulletin

Article written by Zaman Ahmad


9/21

12th Annual General Meeting

Another AGM, the 12th, has been concluded,

on March the 30th,

with typical Swiss efficiency.

Speedily the approving of the minutes of meeting of the 2010 AGM, the annual report of the

committee and the audited accounts were done. All results were unanimously as our two vote

counters Andr Isaak and Manfred Faehndrich established with practiced ease.

The turn out of 42 members of the SMBA was very satisfactory, highlighted by the presence of our

three honorary members Tan Sri Dato Zulliger, Dr. Peter A Wyss and H.E. the ambassador of

Switzerland.

SMBA News Bulletin


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12

AnnualGene

ralMeeting

Johann Bohi after serving on the

committee of the SMBA for more than 6

years did not seek reelection and

Muthanna Abdullah who also did not

seek reelection due to business

commitments. Both have resigned from

the committee.

We would like to sincerely thank Johann

and Muthanna for all the hours,

experience and passion he has brought

to the organization in the past years.

We also would like to express our thanks

and gratitude to Heinz Bauert, Chairman

of the SMBA, for his tireless work,

organizational skills and leadership he

has displayed over the years.One of the founding members of the

SMBA eleven years ago, he has

navigated this organization through all

waters especially in last three years as

Chairman.

He lead the SMBA to new successes and

today Heinz can proudly hand over a

healthy and financially sound

organization to his successor.

Arno Thny the newly elected Chairman

introduced himself and then continued

to thank Heinz for his work andhighlighted the achievements. Arno

concluded with a token of appreciation

that was handed over to the resigning

committee members.

Unanimously elected to the SMBA

committee were:

Thomas Guldimann, Vice Chairman

Sandro Tomasino, Secretary

Marc Seiler, TreasurerAileen Chan, Committee Member

Dato (Dr.) Michael Wong, Committee

Member

Zaman Ahmad, Committee Member

Juergen Mayer, Committee Member

SMBA News Bulletin


11/21

12

AnnualGene

ralMeeting

Another highlight of the evening was

the talk by HE ambassador Dr. Rolf Lenz.

Starting by introducing himself he gave

the members of the SMBA a short and

insightfull overview about the points of

focus of the embassy in the coming

years and the importance of the SMBA

to the SECO.

Having studied political science in

Switzerland Ambassador Dr. Rolf Lenz

finished his degree in Bejing and also

learned the language during his initial

stay in China. Being exposed to a

different culture and also having to

come to terms with it, awakened the

interests of the young graduate and

consequently he joined the diplomaticcorps.

Mainly stationed in Bejing and Shanghai,

interrupted by stays in Canada,

Switzerland and Bosnia Herzegowina HE

Dr. Rolf Lenz was again appointed to an

Asian country and on January the first

became the new Ambassador of

Switzerland to Malaysia.

After going to the usual steps and being

introduces and approved by the King as

well as paying courtesy visits to other

ambassadors HE lost no time to line out

the focus and targets of the embassy

under his leadership.

Mainly the development and further

enhancement of the relations between

the swiss and Malaysian government,

especially where related to economy,

business, tourism and R&D

There is also a concentration on the

development of a FTA (Free trade

agreement) between Malaysia and

Switzerland.

With this outline HE once again stressed

the importance of the SMBA for the

embassy and assuring it his full support.

He concluded by thanking Heinz Bauert

once again for his efforts as the

chairman and handed to Heinz a token

of appreciation as well as a letter from

the embassy.

This concluded the official part of theevening and the members moved on to

the culinary delights of the Melia Hotel.

SMBA News Bulletin |

Article written by Sandro Tomasino


12/21

Messagefromth

eChairman

Dear Members,

We are pleased to inform that at the 12th Annual General

Meeting (AGM) held on 30 March 2011 all motions

addressed have been approved by the assembly.

The new Board of Committee Members that has been

elected and accepted their position are:

Mr. Arno Thny, Melia Kuala Lumpur as Chairman

Mr. Thomas Guldimann, Casa Vino Sdn Bhd as Vice Chairman

Mr. Marc Seiler, Nestl (Malaysia) Berhad as Treasurer

Mr. Sandro Tomasino, GUTOR Electronic Asia Pacific Sdn Bhd as Secretary

Ms. Aileen Chan, LiveLife Sdn Bhd as Committee Member

Dato (Dr.) Michael Wong, Job Hunt Sdn Bhd as Committee Member

En. Kamarulzaman Ahmad (Individual Member) as Committee Member

Mr. Juergen Mayer, Wuerth Industrial Services Malaysia Sdn Bhd as Committee Member

The Auditors of the Association, Messrs T.H. Kuan & Co have been reappointed while

the annual reports and audited accounts were approved without objections.

The Annual Booklet 2010/2011 with information on the new board members, a

kaleidoscope of the past years events and a preview of forthcoming activities was

launched at the AGM. A complimentary copy will be posted to all members shortly. We

sincerely thank all sponsors that contributed and made the printing of the Annual

Booklet possible.

It was an honor to have our Swiss Ambassador H.E. Dr Rolf Lenz, share his experience,

background and vision with the Swiss Malaysian Business Association and thank H.E. for

the insight.

As it is customary and our Associations tradition, we are extending to former Chairmen

of the Board a Honorary Lifetime Membership. It is our great pleasure to extend that

privilege to Mr. Heinz Bauert and welcome him from now on as Honorary Member of the

Swiss Malaysian Business Association. Please join us to extend once again, a sincere

thank you to Mr. Heinz Bauert for his great leadership as Chairman and CommitteeMember since the inauguration of the SMBA. It gives us great confidence that we can call

upon Heinz as our mentor while we may continue the success of the SMBA.

We take this opportunity appreciate your continuous support of the SMBA and look

forward to your participation and enthusiasm for our forthcoming events which have

been listed in the attachment and will be circulated with more details closer to the

respective events, please mark your diaries.

Arno Thny

Chairman, SMBA

April 1st, 2011 SMBA News Bulletin |


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Top row (from left):

Arno Thny, Chairman


Marc Seiler, Treasurer


Second row (from left):

Aileen Chan, Committee Member

Dato (Dr.) Michael Wong, Committee MemberZaman Ahmad, Committee Member


Third row (from left):

Dr. Rolf Lenz, H.E. The Ambassador of Switzerland to Malaysia

Dato Gurbakhash Singh, Legal Advisor to SMBA


Committee Members

April 2011 March 2012


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Arno Thny, Chairman

General Manager,

Melia Kuala Lumpur

Arno Thny was appointed the new General

Manager of Melia Kuala Lumpur in April 2006.

Ever since, the 50yearold hotelier has

steered Melia Kuala Lumpur through his

management styles that incorporates the

corporate social responsibility movement of

balancing the needs of all stakeholders to

achieve sustainable growth and business

development. With 34 years of hospitality

background at hand, he has plenty to prove

and carries with him a wealth of experience in

the hotel industry.

Apart from Malaysia and Singapore, Arno

Thny has acquired significant international

experience and has lived, worked and

undertaken consultancy projects and

assignments in a multitude of Asian countries

such as China, Hong Kong, Philippines,

Thailand, Vietnam, Laos, Myanmar, in

Australia and his very own home countrySwitzerland.

He earned his undergraduate degree from the

Hotel Management School at Belvoirpark,

Zurich and has a Masters Degree in Business

Administration (MBA) from the University of

South Australia, Adelaide. Mr. Arno Thny has

been dubbed an intrapreneur, infusing an

innovative and unconventional management

style in the daily hotel operation.


His interests engulf active participation in

the business community including the

Swiss Malaysian Business Association for

the last five years, is a founding member

and General Secretary of La Camera, the

SpanishMalaysian Chamber of Commerce,

Deputy Chairman of the EUMCCI CSRCommittee and a Committee Member of

the Malaysian Hotel Association KL

Chapter. As an affluent speaker he is using

his skills in educating the next generation

of entrepreneurs and hoteliers at the KDU

College and through talks on the subject of

CSR. His strong conviction and contribution

towards CSR, brought Melia Kuala Lumpur

to the forefront of the CSR movement in

the hospitality industry of Kuala Lumpur.


Managing Director,

Casa Vino Sdn Bhd

Educated in Switzerland, Thomas Guldimann

has held various management positions in

the hotel industry spanning acrossSwitzerland, USA and Asia. He has worked

16 years in Asia and he is now owner of Caso

Vino Sdn Bhd in Malaysia, specializing in

boutique wineries mainly from Australia &

Argentina.

His clientele comprise mainly five & fourstar

hotels, restaurants & bars and dutyfree

shops in KLIA, Klang Valley and Langkawi.

He has been supplying wines to MAS for

their First & Business Class flights to Asia

since 2002.

Thomas was the Founding Member of the

Young Liberal Party FDP (Limmattal1980).

He has held the position of President of the

Swiss Club Malaysia from Feb 2002 to Feb

2004.

CommitteeMembers


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Marc Seiler, Treasurer

Executive Director, Finance & Control,

Nestl (Malaysia) Berhad

Marc Philippe Seiler, currently the Executive

Director, Finance & Control of Nestl

(Malaysia) Berhad was appointed as the

NonIndependent, Executive Director of the

Company on 1 December 2008. He holds a

Masters of Science in Management from

Ecole Superieure de Commerce de Paris,

France and an Accounting & Finance

Diploma [Diplome dEtudes Superieures

Comptables et Financieres].

Marc Philippe Seiler started his career as anexternal auditor with Coopers and Lybrand,

before joining the Nestl Group as Finance

Planning Manager of Nestl Waters in Paris.

Subsequently he was transferred to Nestl

Waters, North America where he has held

several positions such as Director Corporate

Planning, Director Finance Supply Chain,

Director Promotional Trade Spending, Chief

Financial Officer Canada, Chief FinancialOfficer US Retail Division, with his last

position as the Business Development and

Merger & Acquisition Director.



Managing Director,

GUTOR Asia Pacific Sdn Bhd

Sandro Tomasino was appointed Managing

Director of GUTOR Asia Pacific Sdn/Bhd in

2007. In this function he has developed

GUTOR AP from a trading company into a full

fledged manufacturing facility located in Shah

Alam. GUTOR Electronic is the leading UPS

(uninterruptible Power Supply) Engineering

Company specialized in customized systems

for the O&G and power generation market.

This facility caters to the complete value

chain of activities for GUTOR and its clients inAsia Pacific and abroad, including sales,

design, research and development (R&D),

manufacturing, testing and after sales.

GUTOR Asia Pacific also serves as an

engineering and service hub for GUTOR

Switzerland.

After receiving a Bachelor degree in Electrical

Engineering, Sandro went abroad for the firsttime, spending four years in the USA as an

R&D Engineer developing handheld

measurements devices. Back in Switzerland

he joined Sensirion AG a spinoff of the

famous ETH Zurich (Swiss federal Institute of

Technology) where he continued R&D

activities.

In 2004 Sandro was appointed Engineering

Manager of GUTOR Switzerland and

immediately internationalized the

department with Malaysia, China and the USA

as the main hubs of GUTORs Engineering

division.

Sandro Tomasino graduated in 1997 as a

bachelor in electrical engineering from Luzern

and finalized his studies to Executive Master

Business Engineer FH in 2004

CommitteeMembers


16/21

Aileen Chan, Committee Member

Chief Executive Officer,

Live Life Sdn Bhd, Malaysia;

Live Life Pte Ltd, Singapore

As the CEO of LiveLife, a marketing anddistribution company of health and beauty

products, Aileen heads the Sales & Marketing

team and the companys operational aspects

in both Malaysia and Singapore. A Business

graduate from the University of Technology,

Sydney she has proven her skills and business

acumen (she majored in Marketing) in the

competitive world of health and beauty.

Prior to establishing LiveLife together with her

husband, she carved her success as Managing

Director for Bionax Sdn Bhd and Bionax Pte

Ltd with a very successful track record of

launching and growing new and innovative

products to reshape consumers concept of

health & beauty.

Now, with more than 18 years experience in

the health and beauty industry, Aileencontinues to deliver many more marketing

success stories under her companys

philosophy of delivering only the best of

evidencebased, safe and natural health

products. She is responsible for the rise and

success of Estime, a bestselling and award

winning Swiss skin supplement in Malaysia.

Last year, she introduced two innovative

supplements Rilax, a natural stress relief

supplement and TruDtox, a herbal detox tea;

both of which have gained immense

popularity and credibility with consumers.

Most recently, she launched MIREICA, the

worlds first skin supplement containing a

Swiss developed plant stem cell extract, for

younger looking skin. LiveLife has also been

bestowed the honour of Best Local Health

Distributor; a recognition received from

Watsons chainstores.


She is married to Mr. Lim Siang Wee for 23

years and enjoys spending her free time with

her 2 children Nicholas, aged 17 and

Melissa, aged 15. Aileen also enjoys honing

her culinary skills, travelling to new places,

shopping, reading and meeting up with

friends, and is also actively involved insinging for charity (Glitterama Ladies Charity

Group), as well as being actively involved in

the Jinjang Utara Rumah Panjang Charity to

provide education for poor children.

Zaman Ahmad, Committee Member

Regional Head of Customer

Experience,

AirAsia Berhad

Zaman graduated from the Imperial College

as a Petronas scholar with a degree in

Electrical and Electronics Engineering. He

has worked with various divisions of

Petronas since then, first as part of the

Petronas Twin Towers setup team, then for

two years in South Africa as part of Petronas

Team Syntium Opel touring car racing team.

After that, he spent 5 years based in

Switzerland as part of the Sauber Petronas FI

racing team. Since 2005, Zaman has been

part of Petronass Corporate Planning

Division, then with Petronas Research &

Technology Division and his last posting was

as part of the top management team of

Petronas Ammonia Sdn Bhd, based in Kertih,

Terengganu.

Zaman has since joined AirAsia in September

2010 and now holds the portfolio of

Regional Head of Customer Experience. With

this portfolio, he leads more than half of

AirAsia's workforce with a focus on

customer service delivery and the

technology to deliver the products and

services of AirAsia.

CommitteeMembers


17/21

Dato (DR.) Michael Wong

Committee Member

Executive Director,

Job Hunt Sdn Bhd

Dato (Dr.) Michael Wong Chin Hee is a veryambitious, dedicated and widevision

Executive Director with over 20 years of

professional experience in the corporate

world. He has an extensive background in

consumer and pharmaceutical products, as

well as food manufacturing and trading.

Michael took a leading role in establishing a

HR consulting firm, Job Hunt Sdn Bhd,

providing Executive Search & Selection,

Permanent Placements, Recruitment Process

Outsourcing (RPO), Payroll Administration,

Career Day, Behavioural Assessment

Techniques and Corporate Training.

He also sits on the board as Executive

Director for Oriental Eminence Resources

Sdn Bhd a company focusing on mergers &

acquisitions and Global Business AdvisorySdn Bhd a onestop service provider

supporting on the formation and

administration of companies, corporate

advisory, business entities and their legal

compliance.

In addition, Michael continues to shoulder

several other corporate responsibilities. He

has received many awards for his outstanding

work in human capital solutions is well

recognized in this industry.

His memberships with a number of

International Trade Associations such as

EUMCCI (EUMalaysia Chamber of Commerce

& Industry), MABC (Malaysia Australia

Business Council), SMBA (Swiss Malaysian

Business Association), and many more reflect

the diverse demographics of his businessportfolio.



Managing Director,

Wuerth Industrial Services

Malaysia Sdn. Bhd.

Juergen Mayer was appointed Managing

Director of Wuerth Industrial Services

Malaysia in January 2010. The company had

at that time been a new setup and the latest

foundation of the Wuerth Industrial Networkof companies.

Ever since the emerging markets in the Asian

region has been his main focus of interest.

Having spent the majority of his studies in

Southeast Asia, he graduated from the

University Gadjah Mada, Indonesia, with a

diploma in International Business and

Communication in Asia. Having successfully

implemented a project for supplier audits at

BASF Indonesia, he did then start his career

with Wuerth at the Wuerth Industrial

Services headquarters in Germany where he

was responsible for the business

development in the Southeast Asian region.

He enjoys being among the Asian people and

is spending his free time with travelling and

enjoying the beautiful places of Malaysia.

Michael is a graduate of University of

Henley, UK and holds a Masters in Business

Administration (Honours) from Oklahoma

City University, USA.

CommitteeMembers


18/21

N

ewMember

Wuerth Industrial Services Malaysia is part of the Wuerth Group.

The Wuerth Group is world market leader in its core business, the trade in

assembly and fastening material. It currently consists of over 400 companies

in 84 countries and has more than 62,000 employees on its payroll. Over

30,000 of these are permanently employed sales representatives.

In addition to our extensive standard product range, we are also strong in

logistics and operational supply and service concepts as well as specially

designed parts. With our CPS C Product Service we offer modular

solutions that can easily be adapted to suit your individual needs. These CPS

solutions can either contribute to reduce stock and replenishment times

or can help to outsource the entire procurement process.

Through customerspecific service concepts such as scanneroriented rack

systems and justintime supply via Kanbansystem customers experience a

crucial contribution to productivity growth. These systems are applicable for

both highvolume assembly materials on the production line and sporadic

resources requirements.

Wuerth Industrial Services

Malaysia Sdn. Bhd.Principal Representative: Juergen Mayer



19/21

Articlefrom

theEmbassy

Encouraging short term economic trends

further global economic risks


Economic Forecasts for Switzerland Spring 2011

By the State Secretariat for Economic Affairs SECO

Despite the strong Swiss franc, the Swiss economy has so far been able to continue

its buoyant growth, supported by the global economys positive impulses. The expert

group continues to believe that there will be an increasing lag on exports, primarily

due to the strength of the franc, and that this will have a cooling effect on the

economy as a whole. The federal governments expert group forecasts growth in GDP

of 2.1% in 2011 with slightly lower growth in 2012 (1.9%). However, the global

economic outlook is dampened by numerous risks (such as debt problems in many

countries), which are likely to hinder a stable recovery, with the latest developmentbeing uncertainties in connection with the looming nuclear disaster in Japan

World economy: During the winter of 2010/2011, the world economy was relatively

buoyant. The US economy in particular, which had temporarily struggled to get into

gear, noticeably picked up speed thus brightening short term growth prospects

considerably. The Euro zones moderate economic recovery has stayed on track

despite the continuing national debt crisis, although there are still significant

differences between the individual countries. In many emerging markets, economicgrowth has remained dynamic.


20/21

Articlefrom

theEmbassy




Despite the improved short term outlook for the world economy there are still a

variety of factors that could put a strain on the ongoing recovery. Due to the

precarious state of public finances in many countries not only in Europe, but also in

the USA there is growing pressure for consolidation measures, which might

temporarily curb the economy. A further problem lies in the fact that the real estate

crisis, particularly in the USA, is not yet over. As such, private consumption in the USA

is unlikely to serve as a motor for growth for some time, as households are still

reducing their debts or are forced to save. In addition, the sharp rise in the price of

oil (and other raw materials) will continue to burden the global economy, as higher

prices reduce consumer purchasing power and increase production costs for

businesses.

GDP of Switzerland: In view of the solid state of the domestic economy, the slow

down over the next few quarters should be relatively mild. The new forecast of the

expert group is for GDP growth of 2.1% for 2011 (previously 1.5%), and 1.9% for

2012 (as before).

External Trade: Despite the very strong value of the Swiss franc, solid growth in

exports has been recorded so far. This has been bolstered by the recent tailwind

from the international economy (especially from emerging markets, the USA and

Germany). Exports have also been helped by the chemical and pharmaceuticalindustries (roughly 40% of total good exports), which are relatively immune to

exchange rate fluctuations. According to recent surveys, many companies (mainly in

the machine industry) are reporting a weakened position compared to foreign

competitors due to the exchange rate, as well as reduced margins. At present, the

strain of the exchange rate is still being masked by the recovering world economy,

which is having a positive effect on order books. Growth in exports will probably slow

down over the course of the year due to the strong Swiss franc.

Unemployment: The situation on the labour has continued to improve,

unemployment rate fell further to 3.4% at the end of February 2011. The early

indicators for the labour market suggest a continued positive trend. Weakening

economic growth may gradually lessen the fall in unemployment in the later part of

2011 and next year. For 2011 the expert group expects an annual average

unemployment rate of 3.2% (previously 3.4%) and 3.3% for 2012 (previously 3.4%).


21/21

Articlefrom

theEmbassy



Outlook for Switzerland: The current situation of the Swiss economy in spring 2011 is

still positive. In Q4 the economy continued to grow strongly across a wide range of

sectors and at above average levels in comparison with other European countries.

The most recent economic indicators since the beginning of the year (January

February) have also been positive. Business and consumer confidence surveys show

few signs of weakness.

Global economic outlook: It remains extremely uncertain. Economic recovery

continues to be driven by extremely expansive and in the long term unsustainable

monetary and financial policies. A monetary policy correction cannot be put off

indefinitely without jeopardising price stability. The future development in the Euro

zone still presents a huge factor of uncertainty. On the one hand, it may risesignificantly again if unrest in the Arab region were to spread (e.g. to Saudi Arabia).

On the other hand, a sudden easing on the oil markets cannot be ruled out if Japans

demand for oil were to fall significantly as a result of the earthquake.

The recent events in Japan present an additional risk for the world economy but it is

likely that the consequences of the earthquake alone will not have a major impact on

the world economy or that of Switzerland. However, this assessment could alter

significantly in the event of a nuclear catastrophe.

If the latent international economic risks were to materialise, the Swiss franc could

experience renewed appreciation pressure and the competitiveness of Swiss

companies in the global market would be additionally strained.

Source: http://www.seco.admin.ch

Next press release: Tuesday, June 14th 2011

Kuala Lumpur, May 2nd 2011

Frank Eggmann

Counsellor / Deputy Head of Mission

News Bulletin Volume 1-4 2011

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