July’s ex­port or­ders tum­ble 5.7 per­cent: Eco­nom­ics Min­istry

The China Post - - TAIWAN BUSINESS - BY STEPHANIE CHAO

The Min­istry of Eco­nomic Af­fairs (MOEA, ) yesterday an­nounced that ex­port or­ders for July to­taled only US$36.29 bil­lion, amount­ing to a 5.7-per­cent yearon-year drop, mak­ing it the fourth month of con­sec­u­tive de­cline.

The MOEA con­firmed the gloomy news with the re­lease of its latest data. Poor or­der re­sults were seen in panel or­ders, while declines in met­als, plas­tics and rub­ber prod­ucts were also recorded with re­duc­tion rates at 19.4 per­cent, 14.4 per­cent and 14.8 per­cent, re­spec­tively.

The MOEA cited over­sup­ply in an en­vi­ron­ment of weak de­mand, com­pe­ti­tion with China and un­sta­ble in­ter­na­tional oil prices as con­tribut­ing causes for the num­bers.

On a pos­i­tive note, or­ders for ICT prod­ucts grew 8.4 per­cent, rak­ing in a to­tal of US$9.88 bil­lion. Elec­tron­ics prod­ucts saw a small de­cline, with a 0.6-per­cent an­nual re­duc­tion rate and were val­ued at US$9.51 bil­lion. Other prod­ucts saw dou­ble- digit declines, the MOEA said.

The pri­mary coun­tries that con­trib­uted to July’s ex­port or­ders in­cluded the U.S., which saw pos­i­tive growth in or­ders of 10.9 per­cent, but there were drops for six ma­jor ASEAN economies as well as China, Hong Kong, Europe and Ja­pan, ac­cord­ing to the MOEA.

MOEA Sta­tis­tics Depart­ment Di­rec­tor Lin Lee-jen ( ) noted that the com­ing Au­gust re­sults will likely re­flect July’s lack­ing per­for­mance. Pos­i­tive growth will likely take off in Septem­ber as com­pa­nies ride on the pro­mo­tion of new prod­ucts from in­ter­na­tional com­pa­nies and year-end con­sumer de­mands.

On whether an­nual ex­port or­ders will see a pos­i­tive turn, as the fourth quar­ter is tra­di­tion­ally Tai­wan’s peak sea­son, Vice Min­is­ter of Eco­nomic Af­fairs Cho Shih-chao ( ) re­mained am­biva­lent, stat­ing that “it is too dif­fi­cult to say for now.”

For pos­i­tive growth in or­ders, Chung-Hua In­sti­tu­tion for Eco­nomic Re­search (CIER, ) Pres­i­dent Wu Chung-shu ( ) said that com­pa­nies will “need to work ex­tremely hard in the fourth quar­ter.” Wu es­ti­mated that this year’s fourth quar­ter will re­flect last year’s medi­ocre per­for­mance.

“Tai­wan’s ba­sic com­pet­i­tive­ness isn’t lack­ing; what needs im­prove­ment is Tai­wan’s in­te­gra­tion with in­ter­na­tional stan­dards and cul­ti­va­tion of rel­a­tive tal­ents,” Wu said.

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