German companies operating in Taiwan have started to feel the pinch from COVID-19, with 50 percent looking at a 10 percent revenue decline in the first half of this year, a survey by the German Trade Office Taipei showed yesterday.
The coronavirus pandemic has weighed on the local operations of German companies as seen in softening demand for products and services, as well as canceled company events and participation in trade fairs, the survey conducted from March 3 to March 6 found.
The survey indicated a further decline in confidence among German firms, which last month anticipated a global slowdown for this year. The situation has worsened amid the spreading pandemic.
Photo: CNA
Most German companies in Taiwan are small or medium-sized enterprises in the machinery equipment, logistics, and sales and marketing sectors.
Decreased demand was identified as the top challenge at 67.7 percent, followed by canceled company events and participation in trade fairs at 63.1 percent, the survey found.
Against that backdrop, 50 percent of the companies said that they expected revenue to drop at least 10 percent in the first half of the year and 35.9 percent said they would lower their business targets.
Only a minor 2.6 percent said that the outbreak would not have any effect on their business, while 32.1 percent said that it was too early to size up the fallout of the COVID-19 crisis.
Most firms, 60.3 percent, expressed the hope that the Taiwanese government would provide health-protection equipment such as masks, but said they were aware that this demand could be difficult to fulfill in times of supply shortages.
The companies also welcomed financial support measures, such as tax reductions and temporary wage compensation, to help them offset negative economic effects, the survey showed.
However, the German firms showed a high degree of confidence in Taiwan’s crisis management, it found.
More than 87 percent of the companies were satisfied with the crisis management of Taiwanese authorities, office Executive Director Axel Limberg said.
German companies believe in the effectiveness of the guidelines and measures taken by the Taiwanese government, he said.
The vast majority of the companies have adopted measures to help prevent the spread of the virus and have prioritized the protection of their employees and customers, he added.
Most companies provide hand sanitizer and check the temperature of visitors and employees, the survey showed.
No German company was planning to lay off employees and none were dissatisfied with measures to combat the disease, Limberg said.
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