Economy

Survey finds more Taiwan exports produced overseas

An increasing percentage of Taiwan’s exports are produced overseas, a trend set to continue as the ROC government further transforms the local economy. (CNA)

• Publication Date：06/01/2012
• Source： Taiwan Today
• By  Meg Chang

Over half of Taiwan’s export orders last year were filled by production sites at offshore locations, a trend that stands to profoundly effect local investment and labor market patterns, according to the Ministry of Economic Affairs.

Between 52 percent and 84 percent of Taiwan’s electronics, electrical equipment, information communications technology and display panel exports were produced overseas, an MOEA Department of Statistics survey released May 31 showed.

All percentages were up year on year, with around 69 percent of respondents citing lower production costs as the major reason for using facilities abroad. Other considerations include better meeting customer needs and obtaining easier access to materials.

The survey, conducted Feb. 21 to March 30, polled 3,000 local firms and elicited 2,718 valid responses.

Huang Ji-shih, director-general of the department, said the weighting for offshore manufacturing has quadrupled from 12.2 percent in 1999 to 50.52 percent. “The situation has a profound impact on Taiwan … and warrants greater consideration in our policymaking,” he added.

Although this development has seen job losses for Taiwan’s manufacturing sector, Huang said, these positions are being replaced by new opportunities in financial management, production planning and R&D.

The poll also revealed that 11.85 percent of respondents plan to expand production in 2012, down 3.68 percentage points year on year. Of these, 56.52 percent are mulling investment in Taiwan, up 7.91 percentage points, followed by mainland China at 41.61 percent.

“We will continue monitoring this trend and mapping out measures to assist firms in transforming their Taiwan operations into global headquarters and centers of advanced management and technological know-how,” an MOEA official said.

Taiwan’s export orders amounted to a record high of US$436.1 billion in 2011. Mainland China and Hong Kong accounted for the lion’s share at 46.83 percent, up 3.01 percentage points from the previous year, followed by other Asian nations at 1.65 percent and the six major economies of the Association for Southeast Asian Nations at 1.41 percent. (JSM)

Write to Meg Chang at sfchang@mail.mofa.gov.tw