90% of CEOs of top 1,000 firms back ECFA

The survey also indicated that 45 percent of the polled CEOs were worried that the government would be incapable of safeguarding Taiwan's interests after signing the ECFA pact with China.

The CommonWealth Magazine 2010 Top 1000 CEO survey, conducted in December 2009 by the publication's survey research center, is based on questionnaires sent to the CEOs of the CommonWealth Magazine-rated 2009 top 1,000 manufacturing enterprises and top 500 financial firms in Taiwan, as well as 15 domestic financial holding firms. A total of 1,109 questionnaires were sent out and 427 were returned, for a return rate of 38.5 percent.

Allowed to choose several options to explain their reasons for supporting the ECFA signing, 70.6 percent said that inking the pact would help to reduce tariff barriers against Taiwan's exports to the ASEAN region due to the ASEAN + 1, which took effect on Jan. 1, 2010, the free trade agreement between six founding members of the Association of Southeast Asian Nations and mainland China. This, in turn, will place Taiwanese enterprises in a more advantageous position to compete with rivals in the ASEAN region. Some 58 percent noted that the pact can also

boost the competitiveness of Taiwanese enterprises in the mainland Chinese market, and 50.9 percent believed that signing the ECFA will inspire more countries to negotiate with Taiwan on signing free trade agreements, and facilitate Taiwan's participation in more international economic and trade organizations.

On another front, some 90 percent of the CEOs polled projected Taiwan's economic growth rate for 2010 would be lower than an average growth of 4.48 percent based on the forecasts made by Taiwan Institute of Economic Research, Chung-Hua Institution for Economic Research, the Academia Sinica, and the Directorate General of Budget, Accounting and Statistics. This indicates that they are comparatively more conservative about the island's economic outlook.

Meanwhile, CEOs in the high-tech industries were the most optimistic about their revenue growth in 2010, and those in the financial sector were most upbeat about their earnings growth.

The top three external challenges to local enterprises this year were the rising prices of raw materials, global economic uncertainty, and the appreciation of the New Taiwan dollar.

In addition, over 70 percent of the firms polled said they won't enforce any plans to reduce workforce, scale down operations or suspend production this year; some 50 percent noted that they would increase investments in mainland China; and 60 percent said they're willing to engage in strategic cooperation with mainland Chinese enterprises, such as setting up joint ventures or accepting mainland Chinese investment funds.

The poll also touched on the performance ratings for President Ma Ying-jeou, presidents of the Legislative Yuan, the Executive Yuan, the Judicial Yuan, and the Control Yuan, and three top economic and finance officials.

Of the eight officials polled, Governor Perng Fai-nan of the Central Bank of China won the highest performance rating of 94.6 percent, followed by Speaker Wang Jin-pyng with 58.6 percent, Premier Wu Den-yih with 58.6 percent, Economic Minister Shih Yen-hsiang with 52.5 percent.

The other four all saw their performance rating at under 50 percent. President Ma took the second to last place at 45.0 percent, lower than 49.2 percent for President Lai In-jaw of the Judicial Yuan and 48.1 percent for President Wang Chien-hsiuan of the Control Yuan, and only higher than 43.7 percent for Finance Minister Lee Shu-der.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email