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Confidence of Taiwan's small businesses restored in Q2: survey

Confidence of Taiwan's small businesses restored in Q2: survey

Taipei, July 15 (CNA) The confidence of Taiwan's small businesses saw a significant upswing in the second quarter of this year, driven mainly by anticipation of continued improvement in cross-Taiwan Strait relations, according to the results of a biannual survey released Tuesday by HSBC Taiwan.
The confidence index of small businesses in Taiwan stood at 98 in the second quarter -- a rise of 32 points from the fourth quarter of 2008 when confidence was hit hard by the global financial crisis, the results show.
The increase is significantly higher than the average growth in Asia, which climbed by 15 points to reach 107 during the same period.
The survey was conducted between May and June among more than 3,400 small businesses in 12 emerging markets: Hong Kong, Singapore, Taiwan, India, Malaysia, Indonesia, Vietnam, China, Brazil, Mexico, Saudi Arabia and the United Arab Emirates.
In Taiwan, 300 businesses with annual turnover of less than US$10 million participated in the survey.
The results reveal that pessimism dropped significantly in Taiwan in the second quarter, with only 22 percent of the respondents holding a negative view of the economic conditions for the coming six months, down from 65 percent in the fourth quarter of 2008.
Forty-seven percent of the Taiwanese respondents said they would maintain the same level of capital expenditure, and 85 percent anticipated no change in the size of their workforces.
Compared with six months ago, the percentage of businesses that said they would expand their capital expenditure increased by 12 percentage points to reach 23 percent, while the percentage of those who said they would hire more workers rose to 12 percent.
The survey found that anticipation was high among the respondents for trade with China, with 35 percent holding a positive view of the conditions of cross-strait trade in the coming six months.
The figure compares with 29 percent who were upbeat about trade with the United States, and 21 percent who were optimistic about trade with Asian countries other than China.
For the next six months, issues that concern the Taiwanese respondents the most are fluctuations in the new Taiwan dollar and costs of raw materials, as well as the U.S. economic downturn and global economic conditions, according to the results.
(By Y.F. Low)




Updated : 2021-10-21 01:30 GMT+08:00