Nearly 50 percent of German companies based in Taiwan remain positive about their operations, despite rising uncertainty, but said that a lack of skilled workers might become a serious threat, a survey released yesterday by the German Trade Office Taipei showed.
Forty-nine percent of respondents depicted their business in Taiwan as “good,” higher than 43 percent in South Korea, 42 percent in China and 36 percent in Japan, the office said, citing a global survey of the German Chambers of Commerce Abroad conducted in March and last month.
“The findings confirm that German companies remain positive about their business and look to the future with optimism,” German Trade Office Taipei chief representative and executive director Axel Limberg said.
While optimism in some other major Asian markets has weakened due to heightening downside risks, it has remained strong in Taiwan, Limberg said.
Only 7 percent of German companies in Taiwan expect their business operations to deteriorate over the next 12 months, he said.
Optimistic business sentiment gives the firms a higher willingness to invest in Taiwan, compared with other markets in the region, he said.
More than 36 percent said that they would increase investment in Taiwan in the next 12 months, while 49 percent would stand by their original investment plans, the survey showed.
That is higher than 28 percent of German companies in China that intend to raise stakes, 22 percent in South Korea and 19 percent in Japan, it showed.
The outlook is consistent with expectations of economic growth in Taiwan, it showed.
The survey also revealed ongoing and potential challenges.
The war in Ukraine is negatively affecting German firms, with 70 percent saying they expect costs to rise, Limberg said.
Sixty-eight percent believe that global supply chain disruptions have affected their operations, he said.
In addition, a lack of skilled workers continues to put pressure on nearly 50 percent of companies, which call it a serious threat to their operations, he added.
“We hope the Taiwanese government will address this issue with full commitment sooner [rather] than later,” he said, adding that the office is ready to work with the government and jointly explore solutions to meet the challenges.
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