High-level Swiss Business Delegation Visit Manila, Cebu

Makati City (PIA)–The visit of Swiss business delegation in Manila and Cebu this month further boosted economic relations between the Philippines and Switzerland.

The visit came after the first meeting of the Philippines-Switzerland Joint Economic Commission (JEC) last July.

According to Undersecretary Ponciano C. Manalo Jr. of the Department of Trade and Industry-Industry Promotions Group (DTI-IPG) the delegation was led by the Swiss Asian Chamber of Commerce (SACC).

The delegation is composed of executives from Swiss firms with strong business interests in business process management, pharmaceuticals, metal recycling, and finance development.

“The Philippines is known for its political stability and robust economic growth, which are key indicators considered by investors. In fact, some companies that invested in our ASEAN neighbors have shown interest to relocate in the country because of its viable business environment,” Manalo said.

Manalo noted that in looking at ASEAN, many foreign investors have a tendency to choose the Philippines because of its strength in business process management, and availability of young and mobile population with strong proficiency in English.

“These investors are also looking at the Philippines as a potential hub in the region with the full integration ASEAN Economic Community next year,” Manalo said.

From 12 to 16 November, the delegation met with Undersecretary Manalo, and other officials of the Board of Investments (BOI), the Export Marketing Bureau (EMB), the Philippine Economic Zone Authority (PEZA), as well as officers of the Philippine-Swiss Business Council (PSBC).

The delegation also attended a trade and investment forum organized by the Board of Investments (BOI) on November 13 and met with several Philippine companies in the business matching session arranged by the Export Marketing Bureau (EMB).

The delegation also visited Franke Philippines, a Swiss company, as well as Philippine companies, namely Kenneth Cobonpue Asia and Profoods International in Cebu on November 14-15.

“The Swiss companies’ visit aims to showcase opportunities the Philippines can offer them. There are no done deals yet, but the fact that they visited showed their strong and serious interests in the Philippines,” Philippine Ambassador to Switzerland Mr. Leslie J. Baja said. Baja will accompanied the delegation in Manila and in Cebu.

There are about 60 Swiss companies operating in the Philippines that employ around 15,000 Filipinos according to the Swiss Embassy data. By nature of activity, 75 percent of these companies belong to the service sector, and 25% to the industrial sector.

Last year, total Philippines-Switzerland trade hit close to CHF 500 million. Swiss exports to the Philippines amounted to CHF 361.3 million, up by 15.2 percent from its 2012 value, while Swiss imports from the Philippines was at CHF 134M, up by 6% from the previous year, according to Swiss State Secretariat for Economic Affairs.

On investments, total capital stock and invested amount by Swiss firms in the Philippines as of 2012 amounted to CHF 3.8B, according to the Swiss National Bank.

Manalo noted that bilateral economic agreements between the Philippines and Switzerland are firmly in place. In 1997, there was an agreement between the Republic of the Philippines and the Swiss Confederation on the promotion and reciprocal protection of investments. Likewise, in 1998, there was a convention between the Republic of the Philippines and the Swiss Confederation for the avoidance of double taxation with respect to taxes on income.

Manalo added that the Philippines is currently undertaking scoping exercises with European Free Trade Association (EFTA) nations, namely Iceland, Liechtenstein, Norway, and Switzerland on a possible Philippine-EFTA Free Trade Agreement. (DTI/RJB/SDL/PIA-NCR)