Most US companies operating in Taiwan are taking a hit from the COVID-19 pandemic and expect the outbreak to come to an end in the second half of the year, the American Chamber of Commerce in Taipei (AmCham) said yesterday.
An AmCham survey found that the pandemic had affected the business of 77 percent of US firms, with 30 percent describing its impact as large, nearly 50 percent saying it was medium and 21.6 percent characterizing it as small.
The survey aims to capture the latest business sentiment among AmCham members as the previous one — conducted between January and February — failed to meaningfully factor in COVID-19.
The pandemic has weighed on demand for products and services, as well as disrupted events and travel plans, AmCham chairman C.W. Chin (金奇偉) told an online news conference.
The disease has also disrupted supply chains and staff size, as some people are unable to return to work, Chin said.
US companies in Taiwan provide professional services, healthcare products and technologies, financial services, information and communications technology, consumer goods and retail services, Chin said.
Among them, 4.5 percent had laid off or furloughed employees and 9.76 percent plan to do so if the situation worsens, the survey said.
However, the majority, 62.7 percent, said they have no intention of downsizing, Chin said.
The Taiwanese government can lend a hand by providing tax benefits or relief measures, financial aid, subsidies and loans to affected industries, Chin said, adding that the hospitality, tourism and retail sectors are the most affected.
An overwhelming 83.6 percent of US firms in Taiwan have instituted alternative working arrangements, such as remote working, and 52.4 percent said such arrangements are equally productive, Chin said.
AmCham members differed on when they expect the crisis to end, with 36.6 percent looking at the third quarter and 25.4 percent betting on the fourth quarter, the survey showed.
Another 15.7 percent said the pandemic might persist until next year.
Almost all US companies expect COVID-19 to weaken Taiwan’s economy, reducing GDP growth by 0.5 to 2 percent this year, the survey showed.
A large number of respondents, 94.8 percent, are satisfied with the government’s efforts to control the pandemic, it said.
“Taiwan is ahead by all measures in the battle against the virus outbreak,” Chin said.
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