AmCham Taipei 2012 Business Climate Survey January

Marketing Independent Marketing Independent

AmCham Taipei

2012 Business Climate Survey

Marketing Independent 2

Chairman’s Message

Marketing Independent

Message from 2012 AmCham Chairman Bill Wiseman

“

Our 2012 Business Climate Survey asked 387 voting representatives from AmCham member companies – mainly CEOs – to answer about 20 questions in an online questionnaire. 232 members took part - a 60% response rate.

In general, the results of the 2012 survey were closely aligned with those of 2011. Members expressed optimism about the economy and business prospects in Taiwan, with nearly half citing plans to increase investment in the coming year.

“Basic optimism, but spotlighting areas needing improvements.” Message from 2012 AmCham Chairman Bill Wiseman



If views of the business outlook are slightly less rosy than a year ago, the driving factor seems to be global macroeconomic uncertainty and its expected impact on Taiwan's economy.

Once again, the survey results show that the Taiwan government deserves commendation for a number of achievements, including progress in cross-Strait economic relations, adjustment of the corporate tax rate to make Taiwan more competitive within the Asian region, and further strengthening of IPR protection.



But the survey also pinpoints areas where further efforts are needed to remove what are currently perceived as serious obstacles to economic growth:

• Human Resources. Shortages of talent are developing in certain sectors, while constraints remain on hiring professionals from abroad. More also needs to be done to cultivate creativity and initiative-taking in the Taiwan workforce.



• Bureaucratic inefficiencies. Among the problems cited are inconsistent regulatory interpretations, inadequate or outdated laws, and lack of transparency.

• Tax structure. Although the corporate tax rate has been reduced, the high personal income tax rate discourages foreign experts from accepting assignments in Taiwan. The incentive system for encouraging R&D also needs review.

High-level government officials have indicated to AmCham that they recognize these problems and are working on finding solutions.



We offer the findings of the survey as reference for the government as President Ma Ying-jeou prepares for his second term.

In closing, I would like to extend the Chamber’s hearty thanks to Gordon Stewart of Independent Marketing Pty Limited for his invaluable guidance in the planning and execution of this project.

Bill Wiseman

2012 AmCham Taipei Chairman


Executive Summary


Executive Summary – Key Indicators

2011 Profitability

Increased Investment in

2012

2012 Forecast for Revenue

& Profit Growth

5 Year Business Outlook

2010 73.5%

2011 71.9%

2011 81.2%

2012 58.4%

2011 54.3%

2012 42.9%

2011 81.0%

2012 70.3%

Alert!

*Alert! Statistically significant change from 2011

Alert!


Executive Summary - Key Takeaways

• AmCham’s Business leaders had a reasonably good 2011 and are focused on (almost 74% of companies have a primary focus on the domestic market), and generally optimistic, about the future of their businesses in Taiwan.

• Many will increase their investment in Taiwan during 2012. But there is some softening or leveling-off in their forecasts for longer-term investment levels and in their prospects for growing revenues and profits in the short-term. However, the good news is that these softer forecasts are counter-balanced by either “Neutral”, or “Remain the same” forecasts, rather than by negative ones.



• Bureaucracy! Bureaucracy! Bureaucracy! Is a common and persistent negative issue for our business leaders. It is cited throughout this (and last year’s) survey as having negative impacts, being a barrier to success and the one major thing companies want the Taiwanese government to aggressively tackle. While recognizing the progress made by the Taiwanese government in other certain areas, their belief is that more can be done to reduce, simplify and clarify government bureaucracy.



• Inter-governmental relations: Our leaders would like to see, and believe it would be advantageous if there was: a broadening and speeding-up of ECFA; a re-engagement on TIFA talks; a bilateral investment and a taxation agreement between Taiwan and the U.S.A

• Outside of macro-economic risks, issues surrounding Human resources are of the most concern to our business leaders. Specifically, the quantity, quality and costs associated with their employment.


Detailed Findings


2011: A Relatively Good Year for Business.

Almost three out of four (71.9%)of our business leaders assert that their business in Taiwan was either “relatively” or “very profitable” in 2011. A very similar response to the one we received in 2010.


0.0%

2.6%

23.9%

53.0%

20.5%

1.3%

3.0%

23.8%

57.6%

14.3%

Very Large Loss

Relatively Large Loss

Break even or small profit/loss

Relatively Profitable

Very Profitable

How would you characterize your Taiwan business’ financial performance?

Column1 20112012


2012: More of the same…

The majority of our business leaders are forecasting and expect 2012 to also be a relatively good year. However, growth in revenues & profits are forecast to occur at a lesser rate than was forecast last year (from 81% to 58%). The balance to this is that many more expect to “Remain the same” for 2012 – rather than indicating a decline in either revenues or profits.


0%

0.0%

0.0%

6.0%

0.0%

0.0%

2.6%

2.6%

7.7%

53.8%

2.6%

7.7%

17.1%

1.3%

0.4%

0.4%

9.6%

0.4%

0.9%

1.8%

3.1%

22.4%

45.2%

0.4%

1.8%

11.0%

0% 20% 40% 60%

Substantial decline in both Revenues & Profits

Substantial decline in Revenues & modest decline in Profits

Modest decline in Revenues & substantial decline in Profits

Modest decline in both Revenues & Profits

Modest decline in Revenues & modest growth in Profits

No change in Revenue & modest decline in Profits

Modest growth in Revenues & modest decline in Profits

Modest growth in Revenues & no change in Profits

Remain the same

Modest growth in both Revenues & Profits

Modest growth in Revenues & substantial growth in Profits

Substantial growth in Revenues & modest growth in Profits

Substantial growth in both Revenues & Profits

What is your Taiwan business’ Revenue & Profits forecast for 2012 compared to 2011?

2012

2011

*Alert!...

*Alert!...



Short-term investment : Softening?

There does appear to be some softening/ flattening in planned investment levels - with only 43% saying they will increase their entity’s level of investment in 2012 either “slightly” or “substantially”. This compared to 54% last year. Statistically, this is bordering on a significant drop.


0.9%

3.4%

5.2%

36.2%

37.9%

16.4%

1.7%

2.2%

12.6%

40.7%

32.9%

10.0%

Don't know/can't say

Substantial Decrease

Slight Decrease

No Change

Slight Increase

Substantial Increase

What is likely to happen to your entity’s level of investment in Taiwan over the next 12 months?

2012 2011


Unfortunately, or realistically…

…Taiwan is generally viewed as “Not a high priority” back at the global head office. Perhaps this also inhibits greater investment. We said last year that Taiwan needs to better position and market itself to try and gain some more global attention. Changes to: taxation rates; improvements to direct foreign investment rules and incentives; research & development incentives; and lowering some of the bureaucratic barriers, may go a long way here.


10.3%

2.6%

54.3%

11.2%

9.5%

6.9%

5.2%

9.9%

2.6%

45.7%

14.7%

6.9%

9.9%

10.3%

0% 10% 20% 30% 40% 50% 60%


Looking to reduce investment/disinvest

Not a high priority

In the top 10

In the top 5

In the top 3

#1 Priority

How does Taiwan fit into your global entity’s investment plans?

2012

2011


Looking forward five years…

Whilst the vast majority (70%) are “optimistic” or “slightly optimistic” about their five-year business outlook in Taiwan, there has been a statistically significant drop in this score compared to a year ago, with many taking a more “Neutral” position. Further suggesting that there is a growing cautiousness in regards to their future business prospects.


How would you describe your five-year business outlook for Taiwan?

2.6%

9.5%

6.9%

51.7%

29.3%

0.9%

7.3%

21.6%

42.7%

27.6%

0% 10% 20% 30% 40% 50% 60%

Pessimistic

Slightly Pessimistic

Neutral

Slightly Optimistic

Optimistic

2012

2011



What impacts their business?

Not surprisingly, given their Taiwan market focus, changes in local demand have the single greatest impact on their businesses. However, there are several areas where the Taiwanese government can have a direct and substantial influence. These include government bureaucracy, inconsistent regulatory interpretation, inadequate or outdated laws, and company and personal taxation levels. Indeed, reducing taxation levels may well release more money into the economy and help stimulate the area of largest impact – domestic demand.


Which of the following impacts your operation in Taiwan, and how much of an impact do they have?

Top Ten Responses overall

2012 Ranking 2011 Ranking Issues

1 1 Changes in local demand

2 3 Inconsistent regulatory interpretation

3 4 Ability to recruit appropriate new personnel

4 2 Governmental Bureaucracy

5 7 Currency Exchange rate fluctuations

6 5 Inadequate/Out-dated laws

7 8 China-Taiwan government relations

8 9 Changes in employment expenses

9 6 Corporate Taxation levels

10 10 Lack of transparency


Average values only shown on 4 point scale where 4 = extreme impact and 1 = no impact


Progress (and the lack of it) in Taiwan

Some great strides have been made in the past three years to help business – especially in connection with China, like direct flights, better cross-Strait government relations, and of course ECFA. There has also been some progress on important issues such as Corporate Taxation. But there are also areas where no progress has been made (e.g., personal taxation), and worse where there has actually been some perceived regression (e.g., employment expenses and domestic protectionism).


15.0% 17.7% 18.1% 19.0% 19.5% 19.9% 20.4% 20.8%

22.6% 24.3%

25.7% 26.1%

30.5% 32.3% 32.3%

34.1% 34.1%

38.1% 40.7% 41.2% 41.6% 42.0% 42.5% 42.9%

45.1% 50.0%

72.1% 83.2%

85.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Changes in Raw Material costs

Domestic protectionism

Changes in Employment expenses

Government procurement procedures

Illegal imports

Changes in Financing costs

Changes in Transport costs

Inconsistent regulatory interpretation

Ability to recruit appropriate new personnel

Personal Taxation levels

Inadequate/Out-dated laws

Financial Industry Reform

Changes in Tariffs

Governmental Bureaucracy

Currency Exchange rate fluctuations

Customs and trade regulations

Strengthening Overseas Demand

Transparency

Governmental reform/restructuring

Intellectual Property rights infringements

Strengthening Local Demand

EU - Taiwan government relations

USA - Taiwan government relations

Corruption

Infrastructure (Power, Water, Telecommunications, Transport, etc.)

Corporate Taxation levels

The Economic Cooperation Framework Agreement (ECFA)

China - Taiwan government relations

Direct flights to the Mainland

‘Significant” & “Some” Progress over 2009-2011 in Taiwan


7.1% 9.3%

12.8% 31.4% 32.3%

34.1% 35.0% 35.4% 35.8% 36.3% 36.3% 36.7% 36.7% 37.6%

39.8% 41.2% 41.6% 42.0%

43.4% 44.7% 45.6% 46.5% 47.3% 47.8% 48.7% 49.6% 50.4%

52.7% 59.3%

0% 10% 20% 30% 40% 50% 60% 70%




Corruption











Transparency


Changes in Tariffs







Illegal imports






“No Progress” made over 2009-2011 in Taiwan


1.3% 1.8%

4.0% 4.0% 4.0%

5.3% 5.3%

6.2% 6.6%

7.1% 7.1%

8.4% 8.4%

10.2% 10.2%

11.9% 11.9%

12.4% 13.3%

13.7% 13.7%

14.6% 14.6%

20.4% 20.8%

21.2% 21.7%

22.1% 24.3%

0% 5% 10% 15% 20% 25% 30%





Illegal imports


Changes in Tariffs







Corruption






Transparency










“Significant” & “Some” Regress over 2009-2011 in Taiwan


Much more needs to be done

The survey asked about the main things the Taiwan government could do in the next 12 months to help business. The top replies:

– Simplify government bureaucracy

– Increase incentives for foreign direct investment

– Lower personal taxation and further reduce corporate rates.


8.4%

9.3%

18.7%

9.3%

12.1%

18.7%

18.7%

15.0%

16.8%

19.6%

32.7%

25.2%

46.7%

8.7%

10.0%

10.5%

11.0%

11.4%

13.2%

14.2%

15.1%

15.5%

16.4%

16.9%

20.1%

21.5%

24.7%

43.8%

0% 10% 20% 30% 40% 50%

Improve Training Incentives

Reduce Tariffs

Sign bilateral trade deals with other (non-USA)…

Tighten enforcement of Intellectual Property…

Introduce stronger Corporate Governance rules

Increase direct flights to/from the Mainland

*Re-engage in TIFA talks with the USA

Speed-up ECFA

Broaden ECFA

Liberalize the Labor market

Improve Research & Development incentives

Reduce Corporate Taxation further

Reduce Personal Taxation

Increase Direct Foreign Investment incentives

Simplify Government Bureaucracy

What are the top things the Taiwan Government could do to help your entity in the next 12 months?

2012

2011


*Alert!...


Notes on “Other” items mentioned (12.8% in total)

These mostly related to topics about: Transparency in both government and private dealings , to reduce corruption; and specific laws and regulations, e.g., in the Health care, Energy, Financial services , Food safety, Environmental safety and Broadcast markets


The major worries confronting business

Asked about the major risks facing their entity in the coming years, most responses related to economic slowdowns, whether globally, in Taiwan, along with growing concerns about the China and the U.S.A. markets. “Europe” was added this year as an option and is the 5th greatest concern. Outside of economic slowdowns, Human Resources remain the largest concern for business leaders.


3.7%

1.9%

10.3%

19.6%

21.5%

18.7%

17.8%

32.7%

28.0%

35.5%

27.1%

28.0%

63.6%

69.2%

3.7%

1.8%

14.6%

16.4%

17.4%

21.5%

24.2%

32.4%

34.2%

35.2%

35.6%

39.7%

40.6%

54.3%

73.5%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Increased imports

Decreased exports

Taiwan Unemployment rising

TWD appreciation

Taiwan Inflation rising

TWD depreciation

Increased domestic political unrest

Increased Governmental interference

Lack of Human Resources

Economic slowdown in Europe*

Economic slowdown in USA

Economic slowdown in Mainland China

Economic slowdown in domestic consumption

Global economic slowdown

What are the major risks facing your entity in the coming years?

2012

2011

*Alert!...

*Alert!...



Human Resources – A big issue

Deficiencies in the quantity and quality of available human resources are one of the highest risk factors seen as confronting businesses in the future.

We asked our corporate leaders to give us their impressions of the quality of available human capital in Taiwan. First the positives…


Taiwanese Human Resources are seen as …

…Hard-working, very trustworthy, extremely well-educated, highly productive, very loyal, and easy to develop or train. A very positive profile of the workforce. Understandably, no major changes where seen in this year’s survey compared to last.


-80% -60% -40% -20% 0% 20% 40% 60% 80% 100%

Of 'World class' standard

Show a great deal of creativity

Easy to retain

Easy to recruit

Well-rounded

Show a great deal of initiative

Show high degree of emotional…

Easy to develop/train

Very Loyal

Highly Productive

Extremely well-educated

Very Trustworthy

Hardworking

Disagree Strongly Disagree Agree Strongly Agree

How would you describe the quality of available Human Capital in Taiwan?


-12.3%

-10.9%

-10.5%

-5.4%

9.5%

9.6%

24.1%

41.6%

45.2%

44.8%

65.7%

72.3%

82.7%

-20% 0% 20% 40% 60% 80% 100%

Of 'World class' standard

Show a great deal of creativity

Easy to retain

Easy to recruit

Well-rounded

Show a great deal of initiative

Show high degree of emotional intelligence…

Easy to develop/train

Very Loyal

Highly Productive

Extremely well-educated

Very Trustworthy

Hardworking

Human Capital in Taiwan - Net Scores


However…

…They are not perceived as being of “World-class” standard, nor displaying a great deal of creativity. They are also not easy to recruit and retain. There are also concerns over their inability to display initiative. Our respondent leaders were also somewhat divided over whether they are “well-rounded” enough and generally display a high emotional intelligence quotient (EQ).


ECFA…Business leaders are (still) bullish on ECFA but…

Last year when asked what impact they felt ECFA would have on their business and on Taiwan as a whole, the response was overwhelmingly positive. However, a year on, it seems that their experience/knowledge of ECFA has pushed many more into a more neutral position with regards to their perceived impact on the country and on their businesses.

In terms of the perceived impact on the U.S.A., many seem unsure what, if any, impact it has, or will have, on the U.S.A.


ECFA’s effect on My Business

7.5%

1.9%

6.5%

27.1%

42.1%

15.0%

7.3%

0.9%

2.8%

40.6%

38.4%

8.7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


Very Negative Effect

Some Negative Effect

Neither Positive nor Negative

Some Positive Effect

Very Positive Effect

2012

2011

Alert! Statistically significant change from 2011


ECFA’s effect on Taiwan

1.9%

1.9%

4.7%

2.8%

48.6%

40.2%

8.7%

2.7%

1.8%

11.0%

45.7%

30.1%

0% 10% 20% 30% 40% 50% 60%






Very Positive Effect

2012

2011

Alert! Statistically significant change from 2011


ECFA’s effect on the U.S.A. (NB: New Question in 2012)

26.9%

2.3%

7.8%

31.5%

26.5%

5.0%

0% 5% 10% 15% 20% 25% 30% 35%






Very Positive Effect2012


TIFA…Business leaders want an updated one.

This year we asked about the lack of an updated Trade and Investment Framework Agreement (TIFA), between Taiwan and the U.S.A. Generally, there was a strong belief that this disadvantages Taiwan (greatly) and to a slightly lesser extent, the U.S.A. However, whilst also a disadvantage to their businesses, it is seen as more disadvantageous to the two countries.


The lack of a Bilateral Investment Agreement…

This year we also asked who, if anyone, was disadvantaged by a lack of a Bilateral Investment Agreement between the U.S.A. and Taiwan. Much like the response to the question on TIFA, Taiwan is perceived as the biggest loser, followed by the U.S.A. and to a lesser extent their individual businesses.


The lack of a Bilateral Taxation Agreement…

This year we also asked who, if anyone, was disadvantaged by a lack of a Bilateral Taxation Agreement between the U.S.A. and Taiwan. Much like the two earlier responses, Taiwan is perceived as the most disadvantaged, followed by the U.S.A. and to a lesser extent their individual businesses.


Still not much happening in M&A

Few businesses pursued any form of merger and acquisition (M&A) activity during 2010. Of those that did, a few completed the exercise (4%), a few more are still in the process (4%), some tried and failed (less than 4%), and some considered it but didn’t pursue it (23%). However, for the vast majority of business leaders (more than 71%), M&A simply wasn’t on their radar for 2011.


Did your entity pursue, or consider, a merger or acquisition of a Taiwanese entity in the past 12 months?

4.0% 4.0% 3.5%

17.3%

71.2%

4.5% 7.2%

3.6%

23.4%

61.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes, and completedmerger/acquisition

Yes, and still in theprocess of

merger/acquisition

Yes, but failed tocomplete

merger/acquisition

No, but considered No, did not consider

2012

2011


Sound business reasons for M&A

While only a few companies did attempt the M&A route in the past 12 months, their reasons for doing so again, as in 2010, show sound business logic: To enlarge their customer base; increase local market access; acquire capacity; and otherwise gain synergies (by reducing costs and improving profits), were the major drivers behind M&A, as they were 12 months ago.


But (again) finding an appropriate target was the single major barrier

…Along with negotiating the valuation gap and conducting due diligence. Whilst it would be inappropriate to statistically analyze these results against last year’s, it is interesting to note a subtle change in the order of issues, e.g., the rising importance of ‘post-deal restructuring’ and ‘cultural’ issues which have emerged this year as barriers to M&A - both ranked much lower as issues in 2010.


However, still some ongoing M&A interest for 2012

22% of all entities in our survey would either “possibly” or “definitely” consider M&A in the next 12 months.


*Whilst we use the term “Taiwan” it should be remembered that most of our leaders live in the Taipei area and many of their comments will reflect “living in Taipei”.

And finally…”The Living is Easy”

When asked about the quality of life in Taiwan*, corporate leaders strongly agree that Taiwan is a place where:

– “My family feels safe.”

– Taiwanese people are extremely nice.

– Taiwan provides quality healthcare services.

– Taiwan is an easy country to live in.


The Top Ten Benefits of living in Taiwan (Net Promoter Score)

2012 Ranking 2011 Ranking Benefits

1 1 My family feels safe in Taiwan

2 2 Taiwanese people are extremely nice

3 3 Taiwan provides quality Health/Medical/Dental services

4 6 Taiwan delivers reliable electricity.

5 4 Taiwan is an easy country to live in

6 5 Alternative transportation options are usable and provide options to driving my car (i.e., buses, bike lanes, taxis, trains, sidewalks).

7 7 Taiwan provides adequate shopping opportunities

8 9 Internet connectivity is excellent

9 10 Mobile telephone coverage is excellent

10 8 The Postal service is excellent


Living in Taiwan…The not so great things.

• Water runoff from storms is not controlled and results in flooding.

• Taiwan doesn’t provide quality activities for youths.

• Taiwan doesn’t provide quality drinking water.

• Banking and other financial services are seen as sub-par.

• Library services provided to their community are insufficient.


The Bottom Ten Least appreciated aspects of living in Taiwan (Net Promoter Score)

2012 Ranking 2011 Ranking Concerns

1 New in 2012 Taiwan provides an 'English-friendly' environment for me and my family

2 1 Water runoff from storms is controlled and minimizes flooding

3 3 Taiwan provides quality drinking water.

4 2 Taiwan provides quality youth activities

5 4 The library services provided to our community are current and meet our needs

6 4 Banking and other financial services are excellent

7 15 Street surfaces are drivable and safe.

8 7 The sewer system in Taiwan works reliably

9 6 Taiwan provides quality Police services

10 8 The standard of schooling is excellent


About our sample

http://www.sxc.hu/browse.phtml?f=download&id=1319105&redirect=photo


Who, When and How

• The survey was addressed, via email, to the 387 voting representatives – usually the CEO – among AmCham’s Corporate Sustaining and Company membership.

• The survey invitation was sent out on December 6, 2011, and most responses were received by January 10, 2012.

• The 22-question survey was conducted online with each respondent receiving a unique link.

• Certain question choices were randomized - to avoid bias.

• The survey received a total of 232 responses, representing a 60% response rate.


Industry Classifications

• Our respondents identified their industry classification based upon the one which best described their principal business in Taiwan.

• We have reclassified our sample according to the ‘STANDARD INDUSTRIAL CLASSIFICATION SYSTEM OF THE REPUBLIC OF CHINA（Rev.9 , 2011)’

• Our sample draws from all of the major industrial classifications in Taiwan.


Industry Classifications (Cont’d.)

• Our sample is more skewed towards ‘Manufacturing’, ‘Professional Scientific and technical services’, and the ‘Finance and Insurances’ industries. And it is under-weighted in the ‘Wholesale and Retail Trade’ industry – by virtue of the fact there are some 627,000 of these businesses registered in Taiwan, representing 52% of all business numbers. With these covenants, we believe the sample to be a fairly good representation of business in Taiwan and an extremely good sample of AmCham’s corporate membership.


1.3%

0.4%

24.7%

1.7%

0.4%

0.9%

2.1%

5.2%

6.0%

5.6%

11.6%

2.6%

22.0%

2.6%

1.7%

2.6%

8.6%

1.0%

0.1%

10.7%

0.0%

0.6%

7.3%

51.6%

2.5%

8.9%

1.3%

1.9%

1.8%

2.8%

2.2%

0.1%

1.7%

5.6%

Agriculture, forestry, fishing, & animal husbandry

Mining & quarrying

Manufacturing

Electricity, gas supply

Water supply & remediation services

Construction

Wholesale & retail trade

Transportation & storage

Accommodation & food services

Information & communication

Finance & insurance

Real estate

Professional, scientific & technical services

Support services

Education

Arts, entertainment & recreation

Other services

Sample Total Taiwan (source: Statistical Yearbook of The Republic of China 2010, Edited 2011)


Type of legal entity

• Unsurprisingly, the vast majority of businesses in this sample are wholly foreign-owned through a combination of subsidiaries, branch offices and wholly-owned full companies.

• A few of those surveyed also have R&D centers and some have regional HQ’s and even global HQ’s, located in Taiwan. Consequently, the results in the next chart show multiple responses and total more than 100%.

• The “Other” entities relate mostly to: Law firm partnerships, NGO’s, and not-for-profit organizations


Time in Taiwan

• Our sample is split between those who are relatively new to Taiwan (less than 15 years with a physical presence here) at 33%, those who are established 15-30 years at 39%, and those who are well-established (more than 30 years) at 29%. The most frequent length of a physical presence in Taiwan is 21 to 25 years.

• There seems to have been a ‘graduation’ since the 2011 survey, up one level, as last year the 16-20 year olds were the most frequent respondents.


How long has your business been in Taiwan?

11.6%

9.1%

12.5% 13.8%

15.9%

9.1%

22.0%

5.6%

0.4%

8.5%

11.1%

9.4%

21.4%

14.5%

10.3%

17.9%

6.0%

0.9%

0%

5%

10%

15%

20%

25%

Lessthan 5years

6-10years

11-15years

16-20years

21-25years

26-30years

31-50years*

51-75years*

76-100years

Morethan 100

years

2012

2011


Number of Full Time Equivalent Employees (FTEE)

• Our sample covers a wide spectrum of employers - from the very small to the very large. However, 50% employ less than 100 FTEE, 29% employ between 100 and 500, and a further 21% employ more than 500.


Business Focus

• The business leaders surveyed are clearly focused on Taiwan as the primary goal for nearly 74% of the entities is to supply the Taiwan market with goods or services. This makes their comments and observations especially pertinent to the Taiwan

government.


73.7%

12.9%

3.4%

1.3% 0.0%

8.6%

What is your business' primary goal in Taiwan?

Provide goods/service for Taiwanesemarket

Provide/source goods/services for theGreater China market

Provide/source goods/services for exportto the U.S.A.

Provide/source goods/services for exportto markets other than Greater China orU.S.AProvide/source goods/services for exportto Mainland China

Other (mostly global services)


Statistical Testing for Significance

• When comparing the results against last year’s survey we performed a Chi-square test for the comparison of two proportions (from the two independent samples), expressed as a percentage. Note that for this Chi-square test Yates' correction for continuity is applied, and that P-values are two-sided (or two-tailed). When the calculated P value is less than 0.05, the conclusion is that the two proportions are significantly different.

• Throughout the results we have displayed the difference between the two proportions (at the 95% confidence level) with an ‘Alert!’ symbol when we have detected a significant change.


For more details, contact…

• American Chamber of Commerce in Taipei Suite 706, Worldwide House, 129 MinSheng East Road, Section 3, Taipei 10596, Taiwan

Tel: +886-2-2718-8226 Fax: +886-2-2718-8182

[email protected]

Or:

• Gordon Stewart of Independent Marketing Limited at: [email protected]

mailto:[email protected]

AmCham Taipei 2012 Business Climate Survey January

Documents

Transcript of AmCham Taipei 2012 Business Climate Survey January