Jul 24, 2014

Taiwan - Business revenues in Taiwan grow for 10th month in row

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Local business revenues totaled NT$1.2337 trillion (US$41 billion) in June, representing a 4.1-per cent growth, and marked the 10th consecutive month of growth, according to a report released by the Ministry of Economic Affairs (MOEA) yesterday.

Thanks to growing demand for smartphones, computers and plasma TVs, the wholesale sector's revenues grew 3.6 per cent to reach NT$865.4 billion. Higher exports of stainless iron and construction steels also contributed to the growth, the MOEA said.

The retail sector's sales grew 5.5 per cent to reach NT$333 billion, as sales pick up for cars, summer products and FIFA World Cup-related products and services.

Sales in the food sector grew 3.8 per cent to reach NT$35.3 billion. The growth was attributed to more frequent wedding ceremonies, chain restaurant expansion, the launch of new brands and tourism-related promotion.

The MOEA forecast revenues to climb further in July. The whole sector is likely to benefit from growing demand for personal computers, smart devices and electronic parts and components, the MOEA said. The retail sector and food sector may see revenue growth as the summer travel season begins in July as well as with car dealers launching promotions.

According to the MOEA's survey, 8.7 per cent of firms forecast higher sales in July than in June, while 86 per cent expect the same level and 5.3 per cent forecast lower sales.

The industrial production index was pegged at 107.93 in June, up 8.63 per cent from a month ago.

The index of the manufacturing sector, which constitutes over 90 per cent of industrial production, was pegged at 108.13. The manufacturing index is the third highest figure on record. It grew 8.93 per cent year-on-year and marked the fifth consecutive month of growth.

The growth in the manufacturing sector was mostly attributed to increased production of semiconductors, LEDs, computers and related parts and components, optical instruments, steel, machinery and cars.

Production growth across product lines in the first half of 2014, from highest to lowest, are cars and related parts at 12.4 per cent, electronics products at 8.9 per cent, machinery equipment at 6.5 per cent, computers and optical electronics at 2.9 per cent, base metal at 2.6 per cent and chemical materials at 1.1 per cent.

The production index in the second quarter was pegged at 107.95, which reached a new record in terms of quarterly performance. The index represented a 6.71-per cent growth year-on-year, which was the biggest margin of growth in three years.

Still, the MOEA forecast further expansion in the third quarter. The ministry pointed to a number of positive factors that will support the growth momentum: a global economy on track for recovery, strong car sales around the world, higher demand for machinery, the upcoming launch of new handheld devices, renewed demand for personal computers, growing demand for electronics products related to cloud computing and Internet of Things technologies.

According to the MOEA survey, 14.2 per cent of firms expect higher a production volume in July than in June, while 71.6 per cent forecast about the same level and 14.3 per cent expect lower production.

US$1:NT$29.963

John Liu



Business & Investment Opportunities 

Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. 

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