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Overseas production ratio of Taiwan's export orders on the rise

Overseas production ratio of Taiwan's export orders on the rise

Taipei, Jan. 21 (CNA) The percentage of export orders received by Taiwan-based companies but produced overseas rose dramatically in the final four months of 2014 to set a record high for a full year, the Ministry of Economic Affairs (MOEA) reported on Tuesday. Some 52.6 percent of Taiwan's export orders were produced abroad in 2014, up from 51.5 percent in 2013, 50.4 percent in 2010 (when it exceeded 50 percent for the first time), and 12.2 percent in 1999, MOEA figures showed. The ratio is significant because the more Taiwan's export orders are produced overseas, the less they can contribute to local employment and wage growth and inject vitality into the overall economy, even as export orders continue to grow. Within 2014, the ratio ranged between 49.5 percent and 52.1 percent in the first eight months of the year, but ballooned to over 55 percent from September to December, topping out at 57.5 percent in the final month of the year, the MOEA figures showed. Lin Lee-jen (???), director-general of the ministry's Statistics Department, attributed the generally rising overseas production ratio to labor costs and other expenses that are higher in Taiwan than in other countries. It also reflected the rising ratio of orders being produced overseas by Taiwanese companies in the information and communications technology (ICT) and electronics sectors. In the ICT sector, the percentage of orders made abroad rose to 90.9 percent in 2014 from 87.3 percent in 2013 and 81.9 percent in 2009 while that for electronics goods has also remained solidly above 50 percent and spiked to 55.9 percent in December 2014, the MOEA figures showed. Taiwan's export orders rose to US$472.8 billion in 2014, up 6.7 percent from a year earlier. Seventy percent of Taiwan's overseas production bases are in mainland China. As costs have risen dramatically there, many companies have looked to relocate, and Taiwan's government has tried to lure them back to manufacture their products in Taiwan. But most enterprises interested in moving their operations have opted for low-cost Southeast Asian countries instead. (By Lilian Wu)

Updated : 2021-09-19 20:17 GMT+08:00