Welcoming Remarks For Seminar On ‘Business And Investment Opportunities In Malaysia And Switzerland’ 5 November 2012, MIDA Kuala Lumpur

His Excellency Mr. Johann N. Schneider-Amman
Minister of Economic Affairs of Switzerland

His Excellency Dr. Rolf Lenz
Ambassador of Switzerland to Malaysia

Mr. Gerold Buhrer
President of the Swiss Business Federation

Distinguished guests, ladies and gentlemen.

A very good morning to you.

1. Let me begin by extending a very warm Selamat Datang to the distinguished delegation from Switzerland. It is with great pleasure that I welcome you to Kuala Lumpur. I hope your visit will strengthen further the strong ties of friendship that exist between our two countries.

2. In January, I visited Davos and Zurich to attend the Annual Meeting of the World Economic Forum. I had the opportunity then to meet with representatives of Swiss companies like OMYA AG and RUAG Holding AG. I was also privileged to meet Mr. Gerold Buhrer on that occasion, and it is indeed my pleasure today to greet Mr. Buhrer once again, this time in Malaysia.

Ladies and gentlemen.

3. The world economy is facing challenging times, but there is a contrast between the situation in the east and in the west. A number of western OECD economies are experiencing difficult economic times but in the east, many countries, including China and India, are demonstrating exceptional resilience in the face of global economic turmoil and continue to grow.

4. As a trading nation, Malaysia maintains a fairly open economy and is well plugged into the global economy. What happens in other parts of the world very likely will have an impact on Malaysia. But thankfully, because we have managed our economy prudently, it remains strong and resilient. We survived the Asian financial crisis of the late nineties. We survived the credit crisis of 2006-7. And we continue to demonstrate strength and resilience in the face of current economic challenges.

5. I attribute our resilience and success to three principles of economic management which we have adhered to:

   • The first is an unceasing effort to improve our global competitiveness. This means the prudent management of our economy, including keeping tabs on our fiscal deficit, and continuous investment in infrastructure, talent, sustainability of the environment, productivity enhancement and a strong emphasis on innovation.

   • Second , our designation of private enterprise as the principal driver of our economic growth. Here, the government and the private sector work closely together to support growth and development. The government's role is primarily that of facilitator, while companies and entrepreneurs function as creators of value.

   • Thirdly, we maintain an unswerving commitment to the principles of free and fair trade in our international engagements. It is a position we maintain in the WTO, and it is a principle we abide by in the free trade and economic cooperation agreements we sign with our trading partners.

6. These principles have helped Malaysia to become more competitive. The World Bank “Doing Business” Report released just two weeks ago ranks Malaysia the 12 th most business friendly economy, ahead of Taiwan (16 th ), Germany (20 th ), Japan (24 th ) and France (34 th ). The latest AT Kearney FDI Confidence Index Report also ranks Malaysia among the top 10 FDI destinations in the world.

7. So it is in the context of wanting to develop and expand our business links with our friends from abroad, ladies and gentlemen, that we are pleased to have this opportunity to meet with you today. His Excellency Johann Schneider and I have agreed that we should work harder to strengthen trade and investment relations between our two countries.

8. Many Swiss companies have had a presence in Malaysia for a long time. Nestle, for example, began business here in 1912, and many of its products are today popular household names in the domestic market. We are hopeful, of course, that many more Swiss companies will consider using Malaysia as a base to reach out to markets in East Asia and Southeast Asia.

9. Ladies and gentlemen. Last year, our bilateral trade grew by 31% year-on-year to reach RM5.5 billion. In the first eight months of this year, it totalled RM3.6 billion, an increase of 2.6% over the same period of 2011. This growth is encouraging and suggests that we have the potential to take our trade to a much higher level.

10. Let me say a few words about the proposed Malaysia–EFTA Free Trade Agreement (MEFTA). For Malaysia, this is a strategic initiative to improve our trade competitiveness in Europe. We recognise EFTA's well-known expertise and leadership in high technology and in sectors such as medical devices, pharmaceuticals and environmental technology. We also recognise EFTA's lead in sectors such as finance and banking, insurance, telecommunications and engineering. We therefore view the proposed Malaysia-EFTA free trade agreement as a partnership framework for Malaysia to build an enduring and collaborative economic relationship with EFTA countries.

11. Ladies and gentlemen. Immediately after this seminar we will witness the signing of the scoping paper for the proposed Malaysia-EFTA free trade agreement by the Secretary General of MITI, Datuk Dr. Rebecca Fatima Sta Maria and the Ambassador and Delegate of the Swiss Government for Trade Agreements, Mr. Didier Chambovey.

12. Once again I like to thank Your Excellency, as well as the business delegation from Switzerland, for visiting Malaysia. We appreciate your interest in what is happening in Malaysia and in the region. I am sure this will be a productive business mission for you.

Thank you.