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Most local firms pessimistic about economy: survey

Most local firms pessimistic about economy: survey

More enterprises in a recent survey in Taiwan expressed pessimism than optimism toward the local economy for 2016, according to poll results released Tuesday by 104 Job Bank.

Citing the results, the job bank said that 39.5 percent of the 886 polled enterprises said they expect the local economic fundamentals in 2016 to worsen compared with 2015, while 23.6 percent of them said the local economy will fare better next year.

The job bank said that 34.5 percent of the respondents said the upcoming presidential election has created uncertainty in the local market.

Hung Kuang-li, president of 104 Job Bank, said that many enterprises fear that the results of the election will affect cross-Taiwan Strait relations and the political situation in the region.

In addition to the political worries, 30.2 percent of the respondents expressed worry over the brain drain out of Taiwan, and 26.5 percent said that the failure of the government to present a clear industrial policy bothers them, the survey said.

104 Job Bank said that 23.3 percent of the respondents said they are worried about the aging society in Taiwan, while 21.2 percent said they are afraid of escalating competition from Chinese competitors who have been dubbed the "red supply chain."

According to the survey, the local service sector appeared more downbeat than other sectors in Taiwan, with 42.3 percent of the respondents in the sector expressing pessimism toward the economy, saying that the local economy will worsen in 2016 compared with 2015, while 23.4 percent said the opposite.

The net pessimism level in the industrial sector stood at 18.9 percentage points, while the old economy sector came in second with a net pessimism level of 17.5 percentage points, and the electronics sector recorded the third-highest pessimism level at 14.1 percentage points, the survey shows.

104 Job Bank said that the survey, conducted during the Nov. 12-24 period, had a confidence level of 95 percent and a margin of error of plus or minus 3.29 percentage points (By Chiu Po-sheng and Frances Huang)

Updated : 2021-09-22 08:39 GMT+08:00