Taiwan’s economy has been affected by the global slowdown, much like many countries who depend upon high-tech exports, especially those that go to the United States. This has, in turn, affected their markets and exchange traded funds (ETFs), along with enhancing local innovation and creativity.
Stimulus Payments. This Sunday, the Taiwanese government began distributing spending vouchers to the island citizens, in an effort to trigger a spending spree that would help support the local economy. The Associated Press reports that long lines formed at the dispense centers, where each person is handed a stack of vouchers valued at 3,600 New Taiwan dollars ($108). Evidently, many Taiwanese went straight to supermarkets and grocery stores to purchase necessities.
The government is giving away a total of $2.5 billion worth of vouchers to each of the island’s 23 million inhabitants. Many other businesses that are experiencing low sales such as hotels, amusement parks, restaurants and publishing houses, are also giving discount rates to attract business.
Tech Taps Into Strengths. Likewise, the OEM/ODMs (original equipment/design manufacturer) are demonstrating their tenacity and flexibility by tapping into their most sought-after skills to survive. Namely, adaptability and the capacity to learn to upgrade and survive. The Taiwanese OEM/ODMs are able to reamin successful because they are highly able to adapt to changing needs and find a niche where their services are needed, reports CENS.com.
This exemplifies what is needed, for businesses in any country, to stay afloat in these recessionary times. By retaining client loyalty, designing new products, and by working with clients to learn about what they really need, it is possible to find an area of business like the Taiwanese.
- iShares MSCI Taiwan Index (EWT): down 24.5% over past three months
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.