According to the May 2014 issue of Asia Pacific Economic Outlook by Deloitte University Press, Taiwan is set to have a stronger 2014. SingaporeCompanyIncorporation.sg, a leading incorporation portal, is optimistic that Taiwan’s growth momentum augurs well for Singapore businesses.
According to the Outlook, Taiwan economic recovery has picked up between Q3 and Q4 of 2013. The state saw a record growth of 2.9% in Q4 2013, up from 1.3% in the previous quarter. In addition, the growth momentum continued into the first months of 2014. This is because as an economy dependent on external trade, Taiwan will benefit from the improved economic outlook of the United States and European nations. This, in turn, augurs well for Singapore businesses.
Commenting further, Ms. Cheryl Lee, Operations Manager at SingaporeCompanyIncorporation.sg said, “Singapore businesses have many opportunities to tap from Taiwan’s expected higher economic growth this year and are in good stead to benefit from stronger economic relations between Taiwan and Singapore.”
Singapore companies to benefit from Taiwan’s growth
Taiwan’s growth momentum is expected to be strong going ahead, given the improvement in the macroeconomic scenario in the United States and Euro Zone nations. According to a Reuters report titled ‘U.S. job growth jumps, but shrinking labor force a blemish,’ U.S. recently recorded a massive growth of 288,000 in its non-farm payrolls, a strong economic indicator of the country. Similarly, data from a BBC report ‘Eurozone GDP growth gathers speed’ showed that the Eurozone’s recovery moved up a gear, Germany and France grew between 0.3% and 1.3% in 2013, after periods of contraction and recession.
As a result, Taiwan’s exports that have benefited from the higher outbound trade include electronics, machinery, textiles and food services. “The higher economic growth of Taiwan is expected to boost business for Singapore companies in the days to come,” said Ms. Lee.
Strong business ties
The networking session organized by the Singapore Business Federation (SBF) last week brought some 150 Singapore and Taiwanese business representatives together on a common ground to discuss possible business partnerships. The business talks were primarily held for tapping the opportunities in the nearby economies. Taiwan, known for its pioneering electronic products and Singapore with its logistics and supply chain management expertise can leverage their respective advantages to expand business in emerging economies.
According to the economic division of Taipei’s representative office in Singapore, Singapore is Taiwan’s fifth largest trading partner, fourth largest export market and the eighth largest import market. The new business partnership agreement between Singapore and Taiwan – ASTEP, highlighted recently during a seminar last month cover a wide range of areas from custom procedures to e-commerce to competition policies.
“Taiwan’s higher growth momentum and the bilateral trade talks between Singapore and Taiwan concluded recently will only strengthen the existing economic co-operation between the two Southeast Asian nations. The result would predominantly drive synergies by mutual collaboration in a wide range of industries. Companies incorporated in Singapore will immensely benefit from the dynamics of this scenario,” concluded Ms. Lee.