Huang Chih-Peng, director of the Board of Foreign Trade (BOFT), put the decline at 15-25 per cent in an Economic Daily News report.

"The director anticipated a decline in export orders as a result of the spread of the disease. The impact on exports is expected to be felt in July," BOFT spokesman Francis Liang said.

In February, the government forecast 2003 exports would rise 7.4 per cent from 2002, when they grew 6.3 per cent to US$130.64 billion (S$231.23 billion)

China, the country now hardest hit by Sudden Acute Respiratory Syndrome (Sars), is Taiwan's largest export market and has reported some 4,125 Sars cases and 197 deaths from the disease.

Taiwan has reported 116 Sars cases with eight dead, with the numbers increasing sharply in the past few days.

Mr Liang said the economic ministry is conducting a survey of local manufacturers on the impact of Sars and the findings should be available by the end of this week.