TAIPEI - Analysts forecast that Taiwan's export orders in July would grow to US$40 billion(S$49 billion), contributing to the sixth consecutive month of growth, and that the number of export orders for the whole year will reach US$450 billion.
The Ministry of Economic Affairs (MOEA) is scheduled to release a report this week on Taiwan's export orders in July, but forecasts on last month's figures are already out in local news.
Taiwan's electronics sector is likely to profit from the ever-growing array of new mobile devices to be rolled out by global brands in the remainder of the year, said analysts, adding that this will also work in favour of information and communication technology (ICT) companies.
As the market expects Apple Inc. to introduce the iPhone 6 later this year, Apple suppliers and contract manufacturers are expected to receive more business in the near future.
A popular iPhone 6 may contribute to higher orders in the third and fourth quarters, said MOEA Statistics Department Director Lin Lee-jen (林麗貞).
Many electronics companies' export orders reached US$10 billion in July, Lin said.
The MOEA Statistics Department forecast growing export orders for the ICT and electronics sectors in the second half of 2014.
Electronics products and ICT products account for a large portion of Taiwan's exports.
The number of export orders in the two sectors totaled US$110.27 billion in the first half of 2014, comprising half of total export orders.
With the two sectors looking good in the second half of the year, analysts are optimistic about Taiwan's export performance down the road.
Precision Instruments and Panels Still Underperform
Revenues of Taiwan's non-tech companies may also go up, thanks to a recovering global economy.
Demand for steel products, plastic products and chemical products have shown substantial increase recently.
Export orders for machinery have grown for five consecutive months.
With growing competition and reduced prices, orders for precision instruments are expected to decline, however.
According to government officials, with lower demand for large panels, orders for precision instruments have declined for 14 consecutive months.
With a high base period last year, it is unlikely that the sector will have seen growth in July.
According to the MOEA's survey, about 20 per cent of firms expected to receive more orders in July than in June, while about 60 per cent expect the same number, another 20 per cent expect fewer orders.
Nevertheless, the total number of orders in July will exceed that of June.
Optimism about Second Half of 2014
Export orders in June totaled US$38.82 billion, which represented a 10.6-per cent growth year-on-year.
Export orders in the first half of 2014 totaled US$220.46 billion, hitting a new record, but analysts forecast that Taiwan's exports in the second half of the year will exceed those in the first half, as well as those in the same period last year.
As the global economy continues on track for recovery, many expect export orders to grow in July, contributing to a six-month growth streak.
With demand for laptops expected to grow in the near future, Taiwan's contract manufacturers are likely to benefit.