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Taiwan Infrastructure Report Q2 2016

Taiwan Infrastructure Report Q2 2016

BMI View: We expect growth in Taiwan's construction sector to pick up beyond 2015, supported by expansionary spending policies, a focus on developing the country's transport network and a rebalancing of the power sector. The presidential elections in 2016 pose the most significant downside risk to our outlook. Forecast And Latest Updates

Taiwan's construction industry contracted 1% y-o-y in 2015. We forecast the industry to return to growth and register 1.3% y-o-y expansion in 2016, supported by expansionary expenditure and monetary policies.

We hold our view Taiwan's export-orientated manufacturing sector will continue to face headwinds due to the ongoing slowdown in China and reduced global demand for tech products. These factors will weigh on the non-residential buildings segment.

Over our forecast 10-year period, we expect Taiwan's construction industry to average 3.5% growth per annum. We believe construction activity will be supported by favourable government policies, continued focus on developing the country's transport network and a rebalancing of the power sector.

We expect a weakening of the property market in 2016, given the government has implemented a capital gains tax (effective January 1 2016) with a top rate of 45.0% to curb property market speculation and surging real estate prices.

We believe DPP's landslide victory in the presidential and parliamentary elections in January 2016 will have a significant impact on Taiwan's energy sector. President-elect Tsai Ing-wen's commitment to phasing out nuclear by 2025, combined with the already widespread anti-nuclear sentiment in Taiwan, will weigh on the nuclear sector. Increased support for renewable energy and strengthening project pipeline for coal and gas plants means the government's focus is increasingly shifting to alternative power sources to fill the gap from reduced nuclear output.


BMI Industry View
Forecast And Latest Updates
Table: Infrastructure - Construction Industry Forecasts (Taiwan 2015-2021)
Table: Infrastructure Risk Reward Index (Taiwan Q2 2016)
SWOT
Infrastructure SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Latest Updates
Table: Construction And Infrastructure Industry Data (Taiwan 2015-2025)
Structural Trends
Transport Infrastructure - Outlook And Overview
Latest Updates
Table: Transport Infrastructure Industry Data (Taiwan 2015-2025)
Structural Trends
Table: Competitiveness Of Taiwan's Infrastructure - Rank Out Of All Countries Assessed
Table: Top Five Transport Projects By Value
Energy And Utilities Infrastructure - Outlook And Overview
Latest Updates
Table: Energy And Utilities Infrastructure Data (Taiwan 2015-2025)
Structural Trends
Renewables
Nuclear
Water Utilities
Table: Top Five Energy & Utilities Projects
Residential/NonResidential Building - Outlook And Overview
Latest Updates
Table: Residential and Non-Residential Building Industry Data (Taiwan 2015-2025)
Structural Trends
Table: Top Construction And Social Infrastructure Projects
Industry Risk/Reward Index
Taiwan - Infrastructure Risk/Reward Index
Rewards
Risks
APAC Infrastructure RRI: Affirming A Benign 2016 Outlook
Table: Asia Risk/Reward Index
Market Overview
Competitive Landscape
Company Profile
Kung Sing Engineering
BES Engineering
CTCI Corporation
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Index Indicators
Table: Weighting Of Indicators

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