"The security situation around Switzerland is deteriorating year by year," the FIS said in its annual overview.

"A global confrontation is emerging, with the USA on one side and China and Russia on the other. This has direct implications for Switzerland: the threat of espionage is high and proliferation activities are increasing."

The global context has direct implications for Switzerland, a militarily neutral country which hosts multiple international organisations.

The confrontation is "increasing pressure" on the wealthy Alpine nation, making it "a key target for foreign intelligence services", the FIS said.

The report said several countries had posted undercover intelligence officers in Switzerland.

"They pass themselves off as diplomatic personnel, business people, media representatives or tourists, for example," it said.

"The greatest espionage threats come from Russia and China, both maintaining a strong intelligence presence in Switzerland. They are interested in federal authorities, companies, international organisations, and research institutions."

Unlike the intelligence services of many other states -- which primarily spy on their own diaspora -- China and Russia have sufficient resources to pursue other targets, according to the FIS.

They are also going after police forces, foreign diplomatic missions, journalists and universities, the Switzerland's Security 2025 report said.

Russia and China have "undercover personnel at diplomatic missions", it noted.

- Abductions, sabotage, assassinations -

Swiss defence minister Martin Pfister said Switzerland's security environment had "deteriorated drastically" since Russia's invasion of Ukraine in 2022.

The report said Moscow and Beijing would continue conducting intelligence operations in Switzerland against Western states, including preparatory activities for hybrid warfare.

"Switzerland faces an increasing risk of being used illicitly for the preparation or perpetration of abductions, sabotage and assassinations abroad," it said.

Meanwhile the FIS expects no decrease in the amount of espionage against exiled opposition figures and journalists living in Switzerland.

"Geneva, as an international meeting point, will remain a hotspot for illegal intelligence," it added.

"We have never experienced such a density of threats. We are not mere observers: we are directly affected," said FIS director Christian Dussey.

He said the agency's strategic radar was tracking 15 international crisis hotspots.

Dussey said foreign spies were also interested in Switzerland's technological innovation sector.

The FIS also said the intensifying competition among major powers made Switzerland a preferred target for sanctions evasion attempts and proliferation.

"Russia, Iran, and North Korea are increasingly attempting to procure dual-use goods and technologies for their military and nuclear programmes through Switzerland," it said.

Furthermore, the agency said the terror threat was elevated in Switzerland, primarily from individuals inspired by jihadist ideology.

"A major challenge is the online radicalisation of youth, which can happen quickly, making early detection critical," it said.