DECEMBERASIA BUSINESS OUTLOOK9NEWSROOMEMERGING CYBER THREATS MAKING DATA SECURITY CHALLENGING FOR ASIAN COMPANIESTaiwan's economy is poised for stronger-than-expected growth in 2024, fueled by a boom in demand for technology products driven by advancements in artificial intelligence. The Directorate General of Budget, Accounting, and Statistics has revised the gross domestic product (GDP) growth forecast to 4.27 percent, up from the 3.9 percent predicted in August. This marks a sharp rebound from the modest 1.31 percent growth recorded in 2023, signaling a revitalized economic trajectory.The island, which hosts Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), the world's largest contract chipmaker, continues to play a critical role in the global tech supply chain. Companies like Apple and Nvidia depend on Taiwan for high-tech components, and the ongoing AI surge has bolstered export demand, driving growth in the technology sector.Exports are now projected to grow by 5.98 percent in 2025, reflecting steady demand for Taiwan's products. While this is a slight slowdown compared to the earlier forecast of 8.71 percent for 2024, it underscores the enduring strength of Taiwan's trade-oriented economy. The island remains a vital hub for cutting-edge semiconductor and AI-related manufacturing.Inflation is expected to remain under control, with the consumer price index (CPI) forecast at 1.93 percent in 2025, slightly below the central bank's target of 2 percent. This marks a slight increase from the 1.85 percent forecast for 2023, indicating stable price levels as Taiwan's economy expands.In addition, the statistics office revised the third-quarter economic growth figure for 2024 upward to 4.17 percent from an initial estimate of 3.97 percent. This adjustment reflects the island's accelerating economic activity, driven by its strategic position in the global technology supply chain and the growing AI-related demand. According to a report by Affinidi in partnership with IDC, only 10 percent of businesses in key Asian markets are prepared to transition into experience-orchestrated organizations, a model that enables seamless, personalized engagement across multiple business channels. The report highlights that data collection and management are significant challenges for companies, with 56 percent of businesses citing a growing reluctance among customers to share their data, primarily due to escalating cyber threats.For businesses to succeed in becoming experience-orchestrated, they must address issues such as data fragmentation, evolving privacy regulations, and the need to build customer trust. Achieving a unified, comprehensive view of customers is crucial to delivering fully personalized experiences, which have become a critical competitive differentiator. The report predicts that by 2025, half of all customers will evaluate companies based on the transparency of their privacy policies, urging businesses to adopt user-friendly, permission-based data practices.Ian Mutter, CEO of Affinidi, emphasized the urgency for businesses to balance privacy and personalization, noting that "Turning X-O will be pivotal for businesses to stay competitive in today's digital landscape. It is no longer about just acquiring data, but also knowing how best to utilize it to cater to customers' needs and preferences."Looking ahead, the report anticipates that by 2025, 45 percent of Chief Information Officers (CIOs) will prioritize strategic data management to build a data-centric culture, while 40 percent of CIOs will collaborate with Chief Marketing Officers (CMOs) to create unified strategies aimed at eliminating data silos for better customer engagement. TAIWAN'S ECONOMY SET TO OUTPACE GROWTH PROJECTIONS OWING TO AI BOOM
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