AmCham 2023 Business Climate Survey: Confidence, Not Complacency

TAIPEI, Taiwan – The American Chamber of Commerce Taiwan’s 2023 Business Climate Survey shows members remain confident in both Taiwan’s economy and their own company’s prospects. Although expectations have been adjusted due to global economic headwinds, members remain committed to Taiwan, and 88% plan to maintain or expand investments.

2023 Business Climate Survey Report highlights:
• Members expressed continued confidence, with 88% saying they plan to maintain or increase investment in Taiwan.
• Satisfaction with the regulatory environment has decreased – 46% say that Taiwan’s regulations are not updated in response to changing societal and economic needs, an increase of 11 percentage points from last year’s survey.
• For the first time, questions on ESG were included in the survey, and 56% of respondents said they have committed to net zero emissions or 100% renewable
energy usage, but 68% expressed concern over the availability of green energy.
• Human capital remains a focus among member companies, with 60% planning to invest in staff expansion and development during 2023, with many calling for the government to prioritize this issue in the coming years.

The survey, which took place between November 15 and December 16, 2022, revealed that 71% were confident in Taiwan’s economic outlook over the coming year, while 79% were positive about the economic outlook for the next three years. Nearly 73% were optimistic about their company’s revenue growth prospects in the coming year, and 85% expressed confidence over the next three years.

While members remain confident, the survey also showed a less favorable view of Taiwan’s regulatory environment compared with the year prior. Over a third (34%) of respondents identified regulations and policies as the most important area for improvement of Taiwan’s business climate. Additionally, 46% said Taiwan’s laws and regulations are not updated in response to changing societal and economic needs, and 43% said regulations are interpreted inconsistently.

A majority of AmCham members (73%) consider it important to their business for Taiwan to achieve a bilateral trade agreement with the United States, Taiwan’s second-largest trading partner. As sound regulatory practices are a focus area of the U.S.-Taiwan Initiative on 21stCentury Trade, AmCham recommends the government consider the Chamber’s constructive criticism and strive to establish a more investment-friendly regulatory environment.

Although national security and cross-Strait relations were considered important concerns, 67% of survey takers reported no significant disruption by increased tensions across the Taiwan Strait during the second half of 2022. Nevertheless, 47% of companies have either revised or plan to revise business continuity plans to address the new geopolitical climate.

In line with Taiwan’s goal of achieving net zero carbon emissions by 2050, 56% of companies have formally committed to achieving net zero, 100% renewable energy, or a similar target. However, 67% are concerned about the availability of green energy, and 42% asked for energy sufficiency to be a top priority for the government in the next 1-3 years. Failure to secure sufficient green energy supply will constrain continued inbound foreign investment at a time when risk assessments have already added a premium for foreign investors.

However, the survey also confirms the Chamber’s longstanding position that Taiwan requires a faster pace of economic reform and international economic engagement if it is to build the resilience needed to prosper, given the increasingly challenging global and regional environment. AmCham therefore calls on the Taiwan authorities to make exceptional efforts to reduce bureaucracy and fine-tune regulations and on both Taiwan and the U.S. to make faster, deeper progress on the current 21st Century Trade Initiative as the precursor to a long-needed bilateral free trade agreement.

Members also value human capital, with 60% planning to invest in staff expansion and development during 2023. Companies urged the government to prioritize talent development and retention to maintain international competitiveness.

The 2023 Business Climate Survey was distributed to 437 eligible member companies, of which 214 – or around 49% – completed it. The annual survey informs the Chamber’s advocacy agenda for the coming year and serves as a resource for the Taiwan and U.S. governments and others interested in U.S.-Taiwan economic relations.

To download the full report, visit amcham.com.tw/business-climate-survey

For more information, please contact:

Fernando Chen, Senior Manager of Government & Public Affairs
[email protected]

Jay Lin, Senior Director of Government & Public Affairs
[email protected]