AmCham 2024 Business Climate Survey: Positive Outlook for 2024 and Beyond

TAIPEI, Taiwan – The American Chamber of Commerce Taiwan’s 2024 Business Climate Survey shows that member confidence in both Taiwan’s economy and their own company’s prospects has rebounded after a post-pandemic dip.

2024 Business Climate Survey Report highlights:

• Members are committed to the market, with 92% saying they plan to maintain or increase investment in Taiwan this year.
• Satisfaction with the regulatory environment has remained stagnant – 43% say that Taiwan’s regulations are not updated sufficiently in response to changing societal and economic needs.
• Focus on sustainability is substantial across industries – around 61% of companies reported formally committing to net zero emissions or 100% renewable energy usage. However, 71% of survey takers expressed concern about the availability of green energy.
• Members also value human capital, with 55% reporting plans to invest in staff expansion and development during 2024. Companies urged the government to prioritize talent development and retention to maintain international competitiveness.
• While appreciative of Taiwan’s stable and safe environment, members are concerned about road safety, quality of older buildings, the aging population, and regulations that fall short of meeting economic needs.

The survey, conducted between November 20 and December 15, 2023, revealed that 81% of respondents are confident in Taiwan’s economic outlook over the coming year, while 85% were positive about the economic outlook for the next three years. Nearly 83% were optimistic about their company’s revenue growth prospects in the coming year, and 87% expressed confidence over the next three years.

However, the results also confirm the Chamber’s longstanding position that Taiwan requires a faster pace of regulatory reform and further engagement with the international community if it is to build the resilience needed to continue to prosper. Around a quarter of respondents identified reduced bureaucracy and alignment with international standards as the most important areas for improvement of Taiwan’s business climate. Additionally, 40% said Taiwan’s laws and regulations are interpreted inconsistently.

A majority of AmCham members (72%) consider it important to their business for Taiwan to achieve a bilateral trade agreement with the United States, Taiwan’s second-largest trading partner. Support is widespread for the signing of a second agreement and swift implementation of the U.S.-Taiwan Initiative on 21st-Century Trade, and members view the chapter on Good Regulatory Practices as the most important section for their business. AmCham therefore calls on the Taiwan authorities to make exceptional efforts to reduce bureaucracy and fine-tune regulations. The Chamber also calls on both Taiwan and the United States to make faster, deeper progress on the current 21st Century Trade Initiative as the precursor to a long-needed bilateral free trade agreement.

Although national security and cross-Strait relations were considered important concerns, a majority of survey takers said they had not been significantly disrupted by increased tension across the Taiwan Strait during 2023. Nevertheless, 35% of companies said they are revising business continuity plans to address the geopolitical climate.

In line with Taiwan’s goal of achieving net zero carbon emissions by 2050, 61% of companies have formally committed to achieving net zero emissions, using 100% renewable energy, or a similar international environmental target. However, 71% are concerned about the availability of green energy, and 39% asked for energy sufficiency to be a top priority for the government.

The 2024 Business Climate Survey was distributed to 444 eligible member executives, of whom 223 – or around 50% – 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 and Public Affairs Department
02-27188226 ext. 213 [email protected]

Joyce Pan 
Manager of Government and Public Affairs Department
02-27188226 ext. 211 [email protected]