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I am assuming the birthrate for Switzerland is well under replacement if I had to guess?
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Yep. From Grok:
Total fertility rate (TFR) (average number of children per woman over her lifetime): This hit a record low of 1.29 in 2024, down from 1.33 in 2023 and 1.39 in 2022. This is well below the replacement level of about 2.1 needed for a stable population without migration.
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Or perhaps they see the rest of Europe swamped with alien cultures and that weakens you in any future war or conflicts and so you only allow immigration if it is limited and strictly in the best interests of cultural strength and harmony.
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They haven't gotten the memo yet and are still worried about overpopulation. That was sooo three years ago.