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Manufacturers to increase domestic investments amid recovery: survey
Central News Agency
2014-07-03 10:36 PM
Taipei, July 3 (CNA) Over a quarter of local manufacturers expect to make further local investments over the rest of this year amid a warming global economy, according to the an industry survey conducted by the Ministry of Economic Affairs. The survey results released Thursday found that 25.7 percent of manufacturers are planning to increase their domestic investments, while only 15.3 percent are planning to make foreign investments, it found. Besides a better world economy, which is driving up domestic production and market demands, higher production costs in foreign countries has made investors more inclined to put their dollars in Taiwan instead of overseas, the survey said. Across different manufacturing sectors worth a total of NT$26.4 trillion (US$802 billion) in 2013, the chemicals industry has shown the strongest intent to expanding investments, the survey found. By upping local investments, manufacturers expect to improve their competitiveness and quality of labor, the survey said, adding that Taiwan's good investment environment and research and development capabilities were factors behind their decision. Nearly 60 percent of survey respondents said they see fierce competition with other players in the industry as the most challenging part of making foreign investments, followed by concerns over fluctuating exchange rates and a lack of skilled workers capable of implementing such a market strategy. As to how government can help encourage local firms to invest at home, 56 percent of respondents said they hope for more tax benefits. Smaller groups of respondents suggested government subsidies for research and development, assistance in land acquisition, and relaxation on policies governing the hiring of foreign workers. The survey was conducted across 3,000 randomly selected companies between April 15 and May 15. (By Huang Chiao-wen and Lee Hsin-Yin)
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