JUST IN: The American Chamber of Commerce in Taiwan has released its annual Business Climate Survey report.
88% are planning on maintaining or expanding investment in TW. But slowing exports, cross-Strait tensions and US-China competition are impacting business sentiment. π§΅
88% are planning on maintaining or expanding investment in TW. But slowing exports, cross-Strait tensions and US-China competition are impacting business sentiment. π§΅
There's still optimism for Taiwan's economic outlook over the coming year. But 27% of respondents were "not very confident", compared to just 11% last year.
[NB. This survey was conducted between mid-Nov and mid-Dec, before the contraction in TW's Q4 GDP data was announced.]
[NB. This survey was conducted between mid-Nov and mid-Dec, before the contraction in TW's Q4 GDP data was announced.]
The % of companies "significantly disrupted" by cross-Strait tensions rose 16% in 4 months; from 17% in Aug. to 33% in Dec. Majority still not impacted by tensions.
1/3 of companies reported disruption due to "elevated concern or policy changes from their global headquarters".
1/3 of companies reported disruption due to "elevated concern or policy changes from their global headquarters".
βΒ Nearly half (47%) of companies are revising business continuity plans due to the geopolitical climate
β 18% are expanding to additional locations outside TW
β 6% are relocating operations outside TW
β 18% are expanding to additional locations outside TW
β 6% are relocating operations outside TW
Respondents increasingly view US-China competition as having a negative economic impact on TW.
"Somewhat positive": 2022=32%, 2023=21%
"Somewhat negative": 2022=21%, 2023=36%
"Somewhat positive": 2022=32%, 2023=21%
"Somewhat negative": 2022=21%, 2023=36%
5 key factors deter companies from expanding or investing in Taiwan:
1. political uncertainty (66%)
2. bureaucracy (55%)
3. market stagnation (43%)
4. difficulties finding skilled labor (42%)
5. protectionism (33%)
1. political uncertainty (66%)
2. bureaucracy (55%)
3. market stagnation (43%)
4. difficulties finding skilled labor (42%)
5. protectionism (33%)
NB. The survey was conducted between Nov. 15 and Dec. 16, 2022. 214 of 437 eligible member companies of AmCham Taiwan completed the survey.
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