About half of surveyed American companies in Taiwan plan to further increase hiring and investment this year, as they expect the improving macroeconomy to bring more business opportunities and grow revenue, a survey conducted by the American Chamber of Commerce in Taipei (AmCham) showed yesterday.
More than 10 percent of respondents plan a substantial increase in investments in the nation this year, particularly those in the semiconductor industry, compared with 7 percent last year, AmCham said.
The new investments are to build on strong business prospects. More than 60 percent of the AmCham companies surveyed, similar to last year’s results, said that they expect revenue and profit would grow this year, AmCham chairman Thomas Fann (范炘) said at a press conference yesterday.
Photo: Wang Min-wei, Taipei Times
About 60 percent of respondents said they are optimistic about Taiwan’s five-year business outlook, compared with 54 percent last year.
However, despite better business prospects, members of AmCham are worried that uncertainty in the nation’s investment environment might overshadow their business plans.
The business group, which represents more than 500 American companies with local operations, said that both government agencies and the legislature need to beef up their efforts to enhance the investment environment by updating regulations to be in line with global standards, Fann said.
“Taiwan has made little progress [in improving its investment environment to catch up to global peers] over the past few years,” Fann said. “Taiwan is a trade-oriented economy. It needs to accelerate market opening and update regulations to the global level.”
Uncertainty on policy toward China surfaced as one of the major concerns for respondents this year, after last year’s Sunflower movement raised worries that the government might adjust its China policy, Fann said.
“Businesses hope to have clear and long-term visibility. As long as there is uncertainty, they will consider it a risk,” Fann said.
As a result, the government needs to reduce the risk of political turmoil, he said.
The lack of human resources continues to be one of the top concerns for AmCham companies, survey data showed.
AmCham members said that it is not easy to recruit talent, especially individuals who meet world-class standards. Taiwanese lack initiative and innovation, and their English-speaking ability needs to be enhanced, survey data showed.
Adding to the talent shortage problem, “Taiwan is losing talent, such as finance experts, to neighboring economies such as Hong Kong and Singapore,” Fann said.
This year, banking replaced legal services at the top of the list of sectors planning to increase headcount, the survey showed.
In addition, a high personal income tax of 40 percent on expatriates has discouraged companies from introducing foreign talent to Taiwan, AmCham said. In Singapore and Hong Kong, the tax rates stand at between 17 percent and 18 percent.
Meanwhile, more than 80 percent of AmCham members surveyed said they support the government’s intention to join the proposed Trans-Pacific Partnership (TPP) trade agreement to enhance the nation’s growth prospects.
The survey found 68 percent of respondents believe that Taiwan is capable of meeting the high standards required for TPP membership and 83 percent of all respondents encouraged Taiwan to pursue that goal to avoid economic marginalization.
The survey also listed US businesspeople’s least favorite aspects of living in Taiwan.
Food safety concerns ranked first, even though it was a new option on this year’s survey, followed by the lack of an English-friendly environment in second, and issues with banking and other financial services in third.
Additional reporting by CNA
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