The island's exports for the month totalled US$12.37 billion (S$18.5 billion), down US$9.76 billion from a year earlier, marking the fifth consecutive monthly decline, the ministry of finance said.

January's imports fell 56.5 per cent from a year ago to US$8.97 billion, marking the fourth consecutive monthly decline, the ministry said.

In December, the island's exports fell 41.9 per cent and imports dropped 44.6 per cent year-on-year.

However, Taiwan's trade surplus in January rose US$3.40 billion, compared with US$1.86 billion posted a year earlier.

Last month, exports to China and Hong Kong fell 58.6 per cent from a year earlier to US$3.71 billion, shipments to the US lost 26.5 per cent from a year ago to US$1.95 billion and sales to Japan shed 17.9 per cent year-on-year to US$1.12 billion.

Exports of Taiwan-made electronic products fell 45.3 per cent from a year earlier, while exports of base metal and related products were down 43.6 per cent and exports of plastic and rubber products 44.7 per cent lower.

Mr Cheng Cheng-mount, chief economist of Citibank Taipei, said the steep drop in January exports was expected as the island could not escape deteriorating global demand.

However, he said he expects the island's exports to improve in February because some electronics manufacturers, in particular flat panel companies, have received large orders from mainland China.

'The mainland orders are expected to alleviate downturn pressure on exports to some extent. But whether Taiwan's exports will bottom out is up to how the global economy develops,' Mr Cheng said. -- AFP