Taiwan’s exports grew for the eighth consecutive month in May, increasing 8.4 percent year on year to US$25.52 billion, according to the Bureau of Foreign Trade under the Ministry of Economic Affairs June 7.
 
Electronics components comprised 30.4 percent of shipments, followed by information and communication technology products at 10.5 percent, basic metals and related products at 10.1 percent, machinery at 8.5 percent, and plastic and rubber products at 7.7 percent, Ministry of Finance data showed.
 
The BOFT attributed the positive results to robust demand from emerging markets in Southeast Asia and the continued strength of the nation’s semiconductor equipment exports. Bureau figures reveal exports to Association of Southeast Asian Nations member states rose 7 percent year on year in May, while shipments to the 18 New Southbound Policy countries increased 6 percent for the same period.
 
A key component of President Tsai Ing-wen’s national development strategy, the policy seeks to deepen Taiwan’s agricultural, business, cultural, education, tourism and trade ties with the 10 ASEAN member states, six South Asian countries, Australia and New Zealand.
 
Wang Chien-chuan, vice president of the Chung-Hua Institution for Economic Research, said that rising exports to the policy’s 18 target countries highlight the effectiveness of the initiative in bolstering Taiwan’s economic links with the regions. This growth trend is expected to continue going forward owing to government efforts such as the establishment of the Taiwan Halal Center, he added.
 
Launched April 21 in Taipei City and operated by the government-supported Taiwan External Trade Development Council (TAITRA), the center aims to assist local businesses in tapping potential-laden Muslim markets through such measures as helping them gain halal certification and providing match-making and market intelligence services.
 
With regard to semiconductor equipment, the BOFT noted the sector continued to register impressive growth, with exports increasing 22.9 percent year on year in the first four months of 2017 to US$745 million.
 
These latest figures come on the back of the industry’s strong performance last year. Taiwan’s semiconductor equipment exports reached about US$600 million in 2016, up 17 percent annually, according to MOEA statistics.
 
Sun Ming-te, director of the Macroeconomic Forecasting Center under the Taiwan Institute of Economic Research, said that these shipments are projected to record robust growth throughout 2017. Medium to long-term prospects are similarly rosy given the government has included semiconductor equipment in its smart machinery development projects under the five-plus-two innovative industries initiative.
 
The five-plus-two initiative is a comprehensive economic restructuring program promoting the biotech and pharmaceuticals, green energy, national defense, smart machinery and Internet of Things sectors, as well as the circular economy and a new paradigm for agricultural development. (CPY-E)