Hitting another record high, export orders to reach USD 340 billion by end of 2007: MOEA

October 23, 2007

The Ministry of Economic Affairs (MOEA) is projecting that export orders
for the entire year could reach USD 340 billion.

The MOEA statistics department announced that export orders in Aug.
totaled USD 30.49 billion, a record single month high. This figure
represents a 16.32% year-on-year increase amounting to USD 4.28 billion.

However, the overseas production ratio in Aug also climbed upwards,
reaching a new high of 47.39%.

Export orders from Jan. to Aug. totaled USD 219.78 billion, increasing
over the same period last year by 14.6%.

With strong demand for notebook computers and other OEM manufacturing, IT
and telecommunications products in Aug. increased by 31.72% (USD 1.49
billion), comprising the highest portion of export orders. Consumer
electronics comprised the second highest portion of export orders, growing
17.6% (USD 1.11 billion).

Hong Kong and China were Taiwan’s top export destination, with orders
totaling USD 8.74 billion, while the US followed with USD 7.19 billion in
orders. For the Jan. to Aug. period, the US placed a total of USD 54.296
billion in orders, while Hong Kong and China placed USD 57.659 billion in
orders.

The main factor in the decline of export orders from the US is a shift in
Taiwan investment overseas, according to Huang Ji-shi, head of statistics
at the MOEA. Taiwan companies are starting to expand their investments in
Europe and Southeast Asia, which has brought more exports to the region.

Although US export orders are shrinking, Huang said that he remained
“cautiously optimistic” about the overall situation, noting that the
sub-prime loans crisis in the US did not turn out have the anticipated
negative effect worldwide.

26.19% of companies surveyed by the MOEA expect orders in Sept. to
increase over Aug; 50.12% expect orders to remain the same; and 23.69%
expect a decline.

As Taiwan’s main export products are entering the high season, Huang
projects that Sept. will maintain the same levels as Aug, with every month
in Q4 seeing export orders hovering around USD 28 billion.

(Central News Agency)

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