KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Swiss Timepieces, US Tariffs, and a Ticking Clock
US President Trump’s latest protectionist move — a 39% tariff on most Swiss-made products — is shaking the Swiss watch industry to its core. The tariff, effective this Thursday, targets one of Switzerland’s most iconic exports: luxury watches, with Swatch Group in the spotlight.
“We produce everything in Switzerland. When you add a 39% tariff, we cannot absorb that.” — Nick Hayek, Swatch CEO
Swatch’s Short-Term Playbook
Front-loaded US shipments to beat the tariff deadline
Inventory buffer: 3–6 months’ worth already in U.S. stores
Price hikes: Already raised prices 5% in April; more expected
Tapping mobile shoppers: Tourists, cruise ships, and duty-free zones targeted
More stock shipping this week to brace for the impact
Market Reaction
Swatch & luxury peers’ shares fell ~5% on Monday, before partially recovering
The U.S. is the largest market for Swiss watches, accounting for ~17% of exports
Swatch derives 18% of sales from the U.S. (2024)
Structural Limitations
Swiss-made label rules: 60% of value must originate from Switzerland — limiting production shifts
“It’s inconceivable to abandon or dilute the label,” said the Swiss Watch Industry Federation
Analyst View
Short-term cushion, but long-term pressure mounting
Mid- to entry-level brands (like Tissot, Longines) will be hit harder than ultra-luxury labels
If tariffs stick, price-sensitive consumers may retreat, impacting margins and volumes
“If the 39% tariff remains, it would be devastating for the industry.” — Jean-Philippe Bertschy, Vontobel
Political Moves
Switzerland held an emergency cabinet meeting
Government ready to make a “more attractive offer” in ongoing trade talks
CEO Hayek urges Swiss President to negotiate directly with Trump
Takeaway
Swatch and the Swiss watch industry are racing against time. With limited production flexibility, rising costs, and high U.S. exposure, the 39% tariff is a serious threat — unless Switzerland can strike a trade deal quickly. Until then, consumers may pay more, brands may pivot abroad, and uncertainty will continue to tick louder.
“It’s not doomsday — yet. But what counts is what Mr. Trump is saying.” — Hayek
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