Foreign-funded companies curb investment plans as pandemic continues
Among foreign-invested enterprises with more than 100 employees surveyed, 91.1% said they had not yet developed an investment plan (64.4%) or did not plan to invest this year (26.7%).
Only the remaining 8.9% have this year’s investment plan in hand, of which three-quarters said they would maintain investments at last year’s level, while the rest said they would invest any further.
Even when it comes to employment plans for this year, 6 out of 10 foreign-invested enterprises do not have any ready.
Specifically, 14.9% said they would not be hiring this year and 46.5% said they still needed to work on their hiring plans.
Of the remaining 38.6% who said they had already made their employment plans, more than half (51.3%) said they would recruit the same number as last year.
Most of the rest – 46.2% – said they would employ more this year and 2.5% said they would employ fewer people than last year.
The main reason given by foreign-invested enterprises for not increasing their investments this year was the global economic stagnation due to COVID-19 (44.1%), followed by investments in other major projects abroad ( 26.5%).
On why they are not increasing employment this year, 25% of foreign-invested companies said it was due to poor economic conditions, followed by 8.3% pointing to the high corporate tax rate and lack of investment incentives.
The largest share of respondents (34%) said the government should provide tax benefits to businesses that employ more people. Others chose to refrain from increasing the minimum wage (27.1%), improving labor rigidity (21.8%) and supporting innovative industries (10.2%) as key factors. to consider.
“The next administration to be chosen in the presidential election in March will have to recognize the difficulties of companies and improve tax advantages for those with good employment and investment performance,” an FKI official said. . “He should focus on creating a good business environment by refraining from raising the minimum wage and expanding the flexible working system.”
By Hong Yoo (yoohong@heraldcorp.com)