Taiwan Economic News: SARS Changes Taiwan Firms' Biz Concept Toward Mainland

Taipei, May 12, 2003 (CENS)--A majority of Taiwan business owners and executives have changed their concept of risk concerning mainland China since the outbreak of severe acute respiratory syndromes (SARS), according to results of a poll released yesterday

The poll, conducted by the monthly magazine Commonwealth in owners and executives of Taiwan's top 1,000 enterprises, found 60% of Taiwan firms have experienced an impact as a result of the SARS outbreak in mainland China, Hong Kong and Taiwan. More than 70% of the respondents said they now have a different concept of business risk regarding mainland China in the wake of the initial cover-up of the epidemic by mainland authorities, their subsequent under-reporting of the number of SARS cases, and the increasing number of people dying from SARS there. Almost all of the corporate owners and executives said that in the future, epidemic and disease will be added to their firms' "management of risks" regime, the survey showed. Over 32% said the fact of mainland Chinese officials' cover-up or under-reporting of SARS deaths and transmissions has prompted them either to minimize their production scale in mainland China or halt new investment plans there.

Some 40% said they have begun to consider relocating part of their manufacturing operations out of mainland China to other countries, including Taiwan, according to the poll.