Only 36 percent of chief executive officers (CEOs) are confident about the nation’s economic outlook this year, KPMG Taiwan’s 2018 Taiwan CEO Outlook survey showed yesterday.
The figure is the lowest since the survey was first conducted in 2016.
Fifty-six percent of chief executives refused to comment on the nation’s economic outlook, which is higher than the percentage in 2016, KPMG Taiwan said.
Compared with two years ago, Taiwanese chief executives are less confident about the nation’s economic outlook, even though GDP growth has improved, it said.
In the poll two years ago, 92 percent of respondents were optimistic about the economy, while up to 80 percent were upbeat about the outlook in last year’s poll.
KPMG Taiwan attributed the weakening sentiment to the slow pace of industry upgrades in Taiwan, changes in government policies, outflow of talent and the development of domestic industries being out of sync with the world.
It might also be caused by the rising risk of protectionism and the latest escalation in US-China trade tensions, it said.
In addition to deteriorating sentiment among Taiwanese CEOs, there have also been significant changes in their overseas investment plans this year, KPMG Taiwan chief executive officer Charlotte W.W. Lin (林琬琬) said.
North America has become the chief executive officers’ top investment destination due mainly to US President Donald Trump’s tax cuts and trade policies, which have made direct investment in the US more attractive and sensible, Lin said.
Emerging markets in Africa and Asia tied as the second destination, Lin added.
The company polled 50 Taiwanese chief executive officers from 11 major industries — including manufacturing, finance, investment management, insurance, energy and public utilities — who earn at least US$500 million annually.
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