A record number of German companies operating in Taiwan expect turnover to increase this year, although profit expectations were relatively low, an annual survey by the German Trade Office Taipei showed yesterday.
The survey showed that nearly 65 percent of German companies expect business to improve this year after 81.6 percent met their target last year and well-established firms continued to grow, the office said.
The survey, which was conducted among 251 companies from Dec. 6 last year to Jan. 18, showed that 28.8 percent generated revenue of NT$250 million to NT$1 billion (US$8.97 million to US$35.87 million) in the past few years, an increase of 9.6 percentage points from 2019.
Photo: CNA
It said that 21.9 percent reported revenue in excess of NT$1 billion, up from 19.2 percent in 2019.
Sixty-one percent of the firms said that they expect Taiwan’s economy to continue to improve this year, while 63.1 percent forecast the same for their own companies, the data showed.
Long-term commitment to Taiwan remains high among German companies, with 84.2 percent of respondents having established a presence more than five years ago, the survey said.
However, there are not many newcomers, which might indicate a decline in market entry appeal, it said.
“We recommend keeping a close eye on this trend and conducting further investigation,” German Trade Office Taipei Executive Director Axel Limberg said.
Travel restrictions and quarantine measures in Taiwan amid the COVID-19 pandemic have negatively affected business operations, weakening demand for products and services, and forcing cancelations of events, the office said.
German companies are not spared from the global economic slowdown and supply chain disruptions, it said, adding that 69.7 percent of respondents to the survey were affected by bottlenecks last year.
Negative effects might persist this year, it said.
The survey said that Taiwan’s domestic policy issues gained importance among German firms, with 34.2 percent expressing concern over energy transition and 32.9 percent mentioning digitalization.
Effective implementation of policies would become critical for German businesses to succeed in Taiwan, it said.
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