Indices tracking the nation’s industrial production last month continued to expand and hit a new high for October, as the ongoing US-China trade dispute compelled companies to relocate production to Taiwan, the Ministry of Economic Affairs said yesterday.
The industrial production index rose 4.35 percent month-on-month and 8.25 percent year-on-year to 116.38, while the index for manufacturing, the pillar of industrial output, climbed 5.18 percent month-on-month and 9.24 percent year-on-year, with both indicators continuing an eight-month growth streak, Department of Statistics data showed.
Apart from a rise in local production, businesses have also seen a jump in orders from US customers, in particular for items facing the highest tariffs such as networking equipment and servers, Department of Statistics Director-General Wang Shu-chuan (王淑娟) told a news conference in Taipei.
As companies redirect orders, the output index tracking the nation’s computer, electronics and optolectronics sectors last month increased 13.05 percent month-on-month and 23.87 percent year-on-year to 137.67, the fastest growth since October 2011.
“Redirected orders was a major reason for faster-paced growth last month,” Wang said. “While it is still too early to tell, we believe the effect would continue to persist.”
However, Wang said that industrial production and manufacturing output would likely trend down next month, due to a high base set last year, adding that last month’s results were boosted by three additional business days compared with the previous month.
The smart manufacturing and automation segments remain strong, but it would take more time to gauge the impact on suppliers named in a Chinese anti-dumping probe, Wang said.
Cumulatively, industrial production grew 4.3 percent in the first 10 months of the year compared with a year earlier, while manufacturing output increased 4.65 percent over the same period, data showed.
The department also yesterday released the nation’s domestic trade figures for last month, with revenue totaling NT$1.33 trillion (US$43.04 billion).
Domestic trade — including the retail, wholesale and restaurant sectors — rose 2.27 percent month-on-month and 4.98 percent year-on-year, data showed.
Among the three sectors, retail revenue last month set a new record high for October at NT$371.5 billion, but the 0.9 percent annual growth was slower than expected, Wang said, adding that a 15.9 percent year-on-year increase in crude oil prices and a stock market rout had dampened consumer spending.
While Nov. 11’s “Singles Day” led to a 5.2 percent year-on-year rise in e-commerce sales, spending would likely begin to cool next month as promotions wind down, coupled with lackluster smartphone sales, she said.
From January through last month, accumulated domestic trade totaled NT$12.54 trillion, up 4.3 percent from the same period last year, with the wholesale sector showing the highest annual increase of 4.6 percent to NT$8.63 trillion, data showed.
During the first 10 months, the retail sector saw revenue rise 3.6 percent to NT$3.52 trillion, while the restaurant sector reported sales that were 4.4 percent higher year-on-year at NT$393.2 billion, data showed.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and