September 2012  
More has been done to pick up the sluggish economy
TIER business outlook offered mixed signals
More has been done by decision makers of world economies to pick up the sluggish business conditions; however, not much left can be done. Facing serious fiscal constraints, governments have had no choice but relied further on monetary easing measures. Following the ECB’s outright monetary transactions (OMT), the Fed decided to kickoff the much anticipated 3rd round quantitative easing (QE3). Nevertheless, Taiwan’s trade, investment, production and consumption have all been badly held back by deteriorating global business environments. Worsening economic circumstances were resulted from a number of factors: a) slowing down of the US economic recovery, b) long-lasting European sovereign debt crisis, c) cool down of emerging economies including China, India and Brazil, and d) political and territorial disputes among China and Japan. Would looser monetary operations adopted by world major central banks be able to make a difference? That is a question without answers of certainty for the time being.
Although many have been looking forward to a rebound, economic readings in August appeared as awfully unpleasant. Regarding foreign trade, Taiwan’s exports in total of USD 24.69 billion dropped by 0.6% in August Month-on-Month and fell by 4.2% Year-on-Year. The imports in the amount of USD 21.38 billion also declined by 10.7% in August Month-on-Month or reduced by 7.6% year-on-Year. The cumulative exports from January 1 to August 31 of 2012 stood at USD 196.34 billion that would be 5.6% less compared with the same period of last year. The cumulative imports from January 1 to August 31 of 2012 accounted as USD 180.91 billion that would be 5.7% less compared to the same period of 2011. The cumulative surplus from January 1 till August 31, 2012 stood at USD 15.43 billion, which would be 4.4% less compared with the same period of 2011.
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TIER's manufacturing sentiment score offered mixed signals
Taiwan Institute of Economic Research’s (TIER), a Taipei-based think tank, latest manufacturing sentiment report showed a blue signal which implies a possible downturn in Taiwan’s manufacturing sector for August. However, the reading of Taiwan’s manufacturing sector was 10.03 points last month, an increase of 0.39 points from July, which was also the second consecutive monthly increase as uncertainties over the global economy gradually fade away. The launch of new smartphone and tablet products from the late third quarter to the fourth quarter this year, such as, Apple iPhone5, iPad mini, Google Nexus 7, Kindle Fire 2, could help boost sentiment and shipments in the industry.

The Legislative Yuan passed revisions of the Income Tax Act and Income Basic Tax Act, which provide for the collection of taxes on capital gains from securities transactions in 2013
Taiwan and mainland China signed the Cross-Strait Investment Protection and Promotion Agreement that strengthens the protection of lives and properties of investors
Taiwan Economic Research Monthly
Opportunities and challenges facing Taiwan’s local industrial developments
Evaluations of the industrial developments in Taiwan’s five capital cities and Taoyuan County
Different local developments come from different resources in each of local cities. Hence, how to develop local industries is testing the capability of municipal mayors. This article evaluated the recent manufacturing and service sector developments in these cities, and proposed related recommendations for future industrial developments.
Strategies to the branding innovation developments in Taiwan: New Taipei City
Innovation is the main core to transform in business, and it’s the only way to upgrade the branding innovations and values. Therefore, Taiwan’s central government promoted and assisted enterprises for branding and to reform their business in order to build up a new global vision and to strengthen branding values
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