English | 中文版 |  Русский

Breaking News:

taiwan

editor picks 

Editor PicksView All

taiwan

KGI Securities To Acquire Taishin Financial Holding Co.

KGI in May said it will buy Taishin's brokerage unit for NT$29 billion. The acquisition will take its market share to 8.34 percent, making it the island's second-largest brokerage after Yuanta Securities, according to the company and data from the Taiwan Securities Association. Morgan Stanley also advised Taishin on the sale of the business to KGI. Sheng said the firm's lawyers have told it Morgan Stanley's roles working for both Taishin and KGI doesn't create any conflict of interest.

KGI Securities Co. plans to raise NT$10 billion ($302 million) selling shares overseas to help finance an acquisition that will make it Taiwan's second-biggest brokerage firm. The company will use the money to help fund the plan it announced in May to acquire the brokerage operations of Taishin Financial Holdings Co., KGI spokeswoman Janet Sheng said in an interview in Taipei. Taiwan's benchmark Taiex Index has gained 45 percent this year, prompting companies to tap the equity markets to boost capital and finance acquisitions. Local companies sold $6.4 billion of shares to domestic and overseas investors in the first six months, compared with $9.2 billion in the year-earlier period. KGI will likely complete the sale, in the form of global depository receipts, before the end of September, a person familiar with the matter said, speaking on condition of anonymity. The firm hired Morgan Stanley to arrange the offering. Sheng declined to comment on the timing of the sale. On June 19, KGI said the board had approved plans to sell between 670 million and 800 million GDRs to fund the Taishin purchase and for working capital. The company didn't say how much it expected to raise.

read source article
taiwan

Taiwan Gets Investment from China

Taiwan will allow investment from mainland China in 100 industries and projects, helping the island's economy to benefit from the warmest cross-strait relations in 60 years. Taiwan will open up 64 sectors in manufacturing, 25 in services and 11 public infrastructure projects from today, the Ministry of Economics Affairs told a briefing in Taipei. Foundries and the liquid-crystal-display and telecommunications industries will remain closed, the ministry said.

Tensions between Taiwan and China eased after Taiwanese President Ma Ying-jeou abandoned his predecessor's pro- independence stance. The island's benchmark stock index rose 23.4 percent this quarter on speculation that closer ties will aid the economy which contracted by a record in the first three months of the year. "This is another major step toward an improving relationship between Taiwan and China," said Kevin Lin, who helps manage NT$1.5 billion ($46 million) at Taishin Securities Investment Trust Co. in Taipei. "The normalization between the two sides will help boost the local economy and corporate earnings in the long run, and thus increase the valuation of local stocks." The benchmark Taiex index climbed by the most since 2001 in the three months to June 30, and Taiwan's dollar rose 3.4 percent against the U.S. currency in the same period.

read source article
taiwan

Taiwan's Credit Rating Cut to Negative

Taiwan's long-term credit rating outlook was cut to negative from stable by Standard & Poor's Ratings Services, which cited concern about the island's government debt burden and banking system.

Taiwan's long-term credit rating outlook was cut to negative from stable by Standard & Poor's Ratings Services, which cited concern about the island's government debt burden and banking system.

read source article
taiwan

Uncertainty in Taiwan's Economic Future

Despite signs of improvements in Taiwanese exports, forecasted GDP growth has been declining since the start of 2008. First-quarter statistics for 2009 are expected nevertheless to show sharp overall declines. Export orders in the second quarter are expected to improve, but remain well below zero while any rebound may be due only to restocking orders.

Despite signs of improvements in Taiwanese exports, forecasted GDP growth has been declining since the start of 2008. First-quarter statistics for 2009 are expected nevertheless to show sharp overall declines. Export orders in the second quarter are expected to improve, but remain well below zero while any rebound may be due only to restocking orders.

read source article
taiwan

Taiwan exports fall for sixth straight month

Taiwanese exports fell 28.6% in February to $12.59 billion.

Taiwanese exports fell 28.6% in February to $12.59 billion. It is the sixth straight month of year-on-year decline, largely a result of slumping global demand. Exports to Hong Kong and Mainland China suffered significantly last month, dropping 25.2% to $5 billion. Although exports fell considerably, the fall in February was not as drastic as the one in January, due to increased activity in the country's electronic manufacturers last month. Considering Taiwan's export dependent economy, the government has predicted the economy to contract around 3% in 2009 as the global financial crisis continues to impact the country. Other analysts have predicted a much harsher contraction with numbers ranging between 5%- 11% for this year.

read source article
taiwan

Taiwan, Philippines Sign Four Agreements

Taiwan and the Philippines recently signed four trade and investment agreements during a Joint Economic Conference.

Taiwan and the Philippines recently signed four trade and investment agreements during a Joint Economic Conference. The signed agreements include the Memorandum of Understanding (MOU) on Philippine-Taiwan Cooperation on Industrial Technology Development, MOU on SME Food Development, MOU on Intellectual Property Cooperation, and MOU on Standardization and Conformity Assessment for Electronic Products. The conference also saw the unveiling of a new set of investment incentives for Taiwanese companies willing to locate in the Clark and Subic Bay economic corridor.

read source article
taiwan

Taiwan, China In Negotiations For Economic Cooperation Agreement

Taiwan and China recently started negotiations for a free trade agreement.

Taiwan and China recently started negotiations for a free trade agreement. The Comprehensive Economic Cooperation Agreement (CECA) would eliminate trade barriers and allow the free flow of goods, services and capital between the two interdependent economies. Many people from both sides of the straits see this as an important step towards unification. But Taiwanese officials continue to downplay the political impact of the agreement, saying that the CECA is purely economic and only aims to enable Taiwan to prepare for the ASEAN Plus China agreement that will take effect in 2010. The Taiwanese government hopes that improved economic ties and increasing investment from the mainland will provide a boost for the country's sagging economy.

read source article
taiwan

Shanghai Seeks Closer Taiwan Financial Links

Shanghai aims to expand financial cooperation with Taiwan

Shanghai has announced that it aims to expand financial cooperation with Taiwan. Taiwan hopes to set more operations on the Chinese mainland including setting up joint ventures in Shanghai and Beijing. Shanghai also hopes to set businesses in Taiwan in order to strengthen financial bonds between the two regions, create a larger talent pool and to build up Shanghai's position as a major international financial center.

read source article
taiwan

Taiwan Cuts Rate To Record Low As Economy Contracts

Taiwan's central bank slashed the discount rate on 10-day loans to banks from 1.5 percent to 1.25 percent, which is a record low.

Taiwan's central bank slashed the discount rate on 10-day loans to banks from 1.5 percent to 1.25 percent, which is a record low. This comes as a reaction to an unprecedented 8.36 percent drop in gross domestic product in the fourth quarter, the biggest decline since official records began in 1952. Reduced demand for Taiwan's exports have pushed the country's economy to its first recession since the technology bubble burst in 2001. The government forecasts that the economy will shrink by 2.97 percent this year.

read source article
taiwan

Taiwan: Exports Fell 44.1 Percent Last Month

Taiwan's exports fell for the sixth consecutive month on January by a record 44.1% from the same period on the previous year

Taiwan's exports fell for the sixth consecutive month on January by a record 44.1% from the same period on the previous year. The fall in exports was a result from the plunging global demand in light of the financial crisis. Taiwan did however, experience a 1.2 times increase in trade surplus compared to the same month last year. While exports contracted 44.1% to 12.37 billion, imports dropped 56.5% to $8.97 billion, resulting in a $3.4 billion trade surplus in the month of January.

read source article
taiwan

60,000 More in Taiwan Apply for Unemployment Benefits in 2008 Than in 2007

In 2008, almost 139,000 Taiwanese people applied for unemployment benefits, an increase of about 60,000 from 2007.

In 2008, almost 139,000 Taiwanese people applied for unemployment benefits, an increase of about 60,000 from 2007. Taiwan's unemployment rate stood at 3.91% in 2007 and jumped to 4.64% in November of 2008.

read source article
taiwan

Taiwan's Inheritance, Gift Tax Rate Cut to 10%

Revisions to the Inheritance and Gift Tax Act have reduced the tax rate to a single level of 10% instead of the current maximum of 50%.

Revisions to the Inheritance and Gift Tax Act have reduced the tax rate to a single level of 10% instead of the current maximum of 50%. The inheritance tax exemption is set at NT $12 million, and increase of over NT $4 million. The gift tax exemption was doubled from NT $1.1 million to NT $2.2 million.

read source article
taiwan

Taiwan's GDP Growth May Dip to 7-year Low

Due to poor economic performance, Taiwan's GDP is expected to be 1.87%, substantially lower than the 3.04% forecast in August

Due to poor economic performance, Taiwan's GDP is expected to be 1.87% for 2008, a substantially lower growth than the 3.04% forecast in August. Experts predict that Taiwan will suffer from a negative 1.73% growth in the fourth quarter and a negative 0.31% growth in the first quarter of 2009, pushing the economy into a recession. Moreover, officials fear that if the NT$420bn economic stimulus package is not implemented, then Taiwan's economic growth would reach 0.53% in 2009.

read source article
taiwan

Taiwan's Ex-President in Custody

Taiwan's ex-president, Mr. Chen Shui-Bian, is currently facing corruption allegations and was formally taken into custody yesterday.

Taiwan's ex-president, Mr. Chen Shui-Bian, is currently facing corruption allegations and was formally taken into custody yesterday. Mr. Chen is being accused of illegally using a special presidential fund and of being involved in money laundering. The conviction seems to represent Asia's commitment to fight corruption.

read source article
taiwan

Four Accords Signed to Enhance Relations Between Taiwan, China

Four agreements were signed yesterday between China and Taiwan during the highest level Chinese visit to Taiwan in decades.

Four agreements were signed yesterday between China and Taiwan during the highest level Chinese visit to Taiwan in decades. The agreements are meant to strengthen the relationship between the two countries and bring about economic cooperation by improving direct trade, transport links and food safety alerts.

read source article
taiwan

Taiwan Semiconductor’s Net Profit Up 6.3% in Q3

In the months from July to August, Taiwan Semiconductor Manufacturing Company's net profits increased 6.3% from the second quarter.

In the months from July to August, Taiwan Semiconductor Manufacturing Company's net profits increased 6.3% from the second quarter. Demand in all major semiconductor applications rose. Net profit totaled $929.46 million.

read source article
taiwan

Taiwan's Losses from Typhoon Jangmi Exceed NT$2 bil

Typhoon Jangmi, which ripped through Taiwan on September 28-29, caused agricultural losses totaling NT$2.14 billion.

Typhoon Jangmi, which ripped through Taiwan on September 28-29, caused agricultural losses totaling NT$2.14 billion. The agricultural products that took the most damage were rice, grapes, oranges, bananas, and peanuts. Over 57,000 hectares of farming area sustained damage.

read source article
taiwan

Taiwan's Rate Cut May Fail to Help Housing Demand

Despite the Taiwan central bank's .125% interest rate cut, housing demand will most likely remain a serious problem.

Despite the Taiwan central bank's .125% interest rate cut, housing demand will most likely remain a problem. Banks continue to tighten home mortgage lending. Taiwan's top five banks issued a meager $1 billion in new mortgage loans in August, the lowest since February.

read source article
taiwan

Cabinet Unveils Taiwan's NT$122 Billion Economic Stimulus Package

Aiming to boost economic growth, the Cabinet has implemented an economic stimulus package worth $3.77 billion.

Aiming to boost economic growth, the Cabinet has implemented an economic stimulus package worth $3.77 billion. The package is designed to encourage consumption, increase employment, boost infrastructure, and stabilize the financial and stock markets.

read source article
taiwan

Taiwan Stock Index Jumps 5.6% Ahead of Stimulus Package

As anticipation of a government-planned economic stimulus package increased, Taiwan shares soared.

As anticipation of a government-planned economic stimulus package increased, Taiwan shares soared. The weighted Price Index of the Taiwan Stock Market increased 5.6%. Last week, the index fell 10%. Also increasing sentiment was news that the mortgage giants Freddie Mac and Fannie Mae bailed out.

read source article
taiwan

Taiwan's Economy Showing Signs of Slowdown

According to the Cabinet-level Council for Economic Planning and Development, Taiwan is showing several signs of economic slowdown.

According to the Cabinet-level Council for Economic Planning and Development, Taiwan is showing several signs of economic slowdown. Taiwan's economic soundness index was down to 15, the lowest it's been since June of 2003 when SARS took its toll on the island's citizens. The economic soundness index was 20 in June. July's leading indicator dropped for the ninth month in a row to 107.4.

read source article
taiwan

Government Expense Budget for 2009 Fiscal Year Up 6.9%

The budget proposal by the Directorate General of Budget, Accounting and Statistics was approved by the Cabinet.

The budget proposal by the Directorate General of Budget, Accounting and Statistics was approved by the Cabinet. The expense budget for the 2009 fiscal year will be NT$1.83 trillion, a 6.9% increase from the 2008 fiscal year. Expenditure in education, science and culture will use the largest portion of the budget at 18.7%.

read source article
taiwan

Taiwan develops technology to turn livestock waste into fuel oil

A research institute under the Cabinet-level Council of Agriculture (COA) has successfully researched and developed a technique for turning livestock waste into fuel oil.

The COA Taiwan Livestock Research Institute based in the southern county of Tainan has distilled the animal waste into fuel oil using a thermal chemical conversion technology and facility that it developed recently. The technology was researched and developed mainly because the procedures that have been used in the treatment of livestock waste are usually high energy consuming, particularly during the third stage of aerobic treatment, according to Kuo Meng-teh, a researcher and project manager at the institute. However Kuo says that it is still too early to tell whether it would be economically viable to use the technology in commercial applications, as it is still in the developmental stages in the lab.

read source article
taiwan

China Merchants Bank to open in Taipei and London

China Merchants Bank Co, the biggest bank in southern China, plans to open representative offices in London and Taipei as it speeds up expansion overseas to catch up with bigger rivals.

The Shenzhen-based bank will start preparation work this year. China Merchants posted a 116 percent jump in first-half profit to 13.25 billion yuan (US$1.9 billion) as it improved loan margins and maintained fees from credit cards, withstanding government attempts to cool lending growth, it said in a separate statement on Monday.

read source article
taiwan

Overseas Rice Exports From Taiwan Continue to Soar Amid Rising Output

During the first half of the year, Taiwan exported 6,634 metric tons of rice.

During the first half of the year, Taiwan exported 6,634 metric tons of rice. In all of 2007, the country only exported 229 tons. The Taiwanese government has ensured adequate rice reserves for the nation and has guaranteed quality exports to other countries.

read source article
taiwan

Typhoon Causes Farm Losses in Taiwan to Soar to NT$657 Million

Typhoon Fung-Wong caused over NT$657 million in losses of agricultural crops.

Typhoon Fung-Wong caused over NT$657 million in losses of agricultural crops. Pomelos, bananas, guavas, and watermelons took the hardest hit as Taiwan's supply of fresh fruits and vegetables dropped significantly. The area that sustained the most damage was southwestern Chiayi County, reporting a loss of NT$188.7 million. The typhoon also caused losses in livestock, fishery, forestry, and agricultural facilities.

read source article
taiwan

Vegetable Prices Surge 14% in Taiwan

Anticipating an increase in price in wholesale vegetables due to Tropical Storm Fung-Wong, consumers swarmed retail markets to buy vegetables yesterday.

Anticipating an increase in price in wholesale vegetables due to Tropical Storm Fung-Wong, consumers swarmed retail markets to buy vegetables yesterday. Retail markets had about twice the normal number of customers yesterday. The result was a 13.9% increase in wholesale vegetable prices. The price of cabbage and sponge gourd increased 45.8% and 47.6% respectively.

read source article
taiwan

Taiwanese Government Solicits NT$1 Trillion in Investments

The Taiwanese government will implement an industry rejuvenation project, aiming to solicit over NT$1 trillion

The Taiwanese government will implement an industry rejuvenation project, aiming to solicit over NT$1 trillion. To carry out such a project, numerous financial and banking policies will need to be relaxed. By the end of 2009, the government is set to relax 209 regulations.

read source article
taiwan

TAIEX Tumbles 4.5% to 21-Month Low

Taiwan share prices dropped 4.51%, and the weighted index fell 322.72 points to end at 6,834.24, the lowest since October 2006.

Taiwan share prices dropped 4.51%, and the weighted index fell 322.72 points to end at 6,834.24, the lowest since October 2006. A total of 202 stocks closed limit-down and only 11 finished limit-up. Taiwan's financial market, along with those of other Asian countries such as Hong Kong, China, India, Japan, and Korea, experienced such significant drops because of troubles in the U.S. market. Government officials said investors need not worry, especially because of increasing economic cooperation between Taiwan and China.

read source article
taiwan

Taiwan Exports Up 21.3 Percent in June

Taiwan exports volume reached a high as demand from various emerging markets more than compensated for the falling demand from the US.

Taiwan's export volume reached USD $24.3 billion last month. From this rise in exports, there was a 25.5 percent rise to China, a 24.2 percent rise to Europe, and an astonishing 114.7 percent increase to India. The Ministry of Finance released a report just yesterday stating that the cause of such an increase in demand for Taiwan exports comes from China and other emerging markets in Asia, while trade with the US continued on a decline. Despite falling demand from the US, the increasing dependence on emerging markets is projected to sustain the country's export growth, claims Hsu Ray-lin, deputy director of the ministry's Department of Statistics.

read source article
taiwan

Direct China-Taiwan Flights Begin

The first direct flight from mainland China to Taipei in nearly sixty years arrived at the Taipei airport this past weekend.

For the first time in nearly sixty years, a regular, direct flight from mainland China to Taiwan landed at Taipei's airport. Thirty-six planes made the trip across the Taiwan Strait this weekend. China's top official on Taiwan affairs claims the flight was "a new start" in Taipei-Beijing relations. Ties have significantly improved since Taiwan's new president, Ma Ying-jeou, took office in May.

read source article
taiwan

Government Offers Price Discounts to Energy Savers

The Government is offering price discounts to energy savers amid increases in the price of electricity.

Starting today, electricity rates set by state-run Taiwan Power Co. (Taipower) went up by an average of 12.6 percent for the summer. Despite increases, the government is offering price reductions up to 20 percent for those that are willing to conserve energy. The price discount rewards will also be applied to schools that find ways to save electricity. A second phase of electricity price increases is planned by the government to take place in the near future, reflecting sharply rising operating costs.

read source article
taiwan

Government Opens Up the 'Small Three Links' to China

Restrictions on using the 'small three links' to visit China have been further relaxed by the Mainland Affairs Council (MAC).

In order to follow through with his promise of further relaxing cross-strait restrictions, President Ma Ying-Jeou has decided to expand the 'small three links' with China. Before, the right to visit China using the 'small three links' was only for specific Taiwanese residents. Now, Taiwanese and foreign nationals with valid travel papers will be allowed to utilize the outlying islands of Kinmen or Matsu to visit China.

read source article
taiwan

Taiwan’s MOI to Offer Preferential Housing Loans to Young People

The Ministry of Interior (MOI) of Taiwan is planning to offer young couples TWD$2 million as housing loans with zero interest for the first two years.

The Ministry of Interior (MOI) of Taiwan is planning to offer young couples TWD$2 million as housing loans with zero interest for the first two years. Those loans will be available to local people aged 20-39 when they purchase the first house after marriage or replace their houses to prepare a child birth.

read source article
taiwan

Taxation on Overseas Incomes May Be Postponed to 2010

The Ministry of Finance makes plans to postpone implementing the minimum tax burden on overseas income one year.

The Ministry of Finance makes plans to postpone implementing the minimum tax burden on overseas income one year. Under the scheme, locals will be subject to 20% minimum tax on their overseas income exceeding NT $1 million, when their combined domestic and overseas income tops NT $6 million. Countries still exempt from overseas tax or with less taxation include Hong Kong, Singapore and some European Nations.

read source article
taiwan

Ma Plans Energy Tax for Cutting Waste and Tapping New Resources

The President-elect of the Republic of China implemented an energy tax and protection on natural resources as a measure to control increased oil prices.

The President-elect of the Republic of China implemented an energy tax and protection on natural resources as a measure to control increased oil prices. The President-elect stressed the need of promoting energy efficiency and diminishing the waste of resources. The revenues of energy tax will be spent in developing sustainable energy.

read source article
taiwan

MOEA Says Fuel, Electricity Prices Should Be Raised

The Minister of Economic Affairs of Taiwan, Steve R.L. Chen, suggested that the prices of domestic fuel and electricity should be raised since the international energy resources' prices are increasing.

The Minister of Economic Affairs of Taiwan, Steve R.L. Chen, suggested that the prices of domestic fuel and electricity should be raised since the international energy resources' prices are increasing. Taiwan Power Company and CPC Corp. also objected against frozen rates. Electricity prices have only been raised once in the last 25 years and the price of water has been untouched since the last 10 years.

read source article
taiwan

Taiwan Dollar Gains Ground After Presidential Election

Taiwan's dollar escalated after the triumph of Ma Ying-jeou in the presidential election of the Republic China.

Taiwan's dollar escalated after the triumph of Ma Ying-jeou in the presidential election of the Republic China. He plans to improve ties with China by moderating restrictions.

read source article
taiwan

Taiwan Institute for Economic Research Lowers Growth Forecast 4.29 Percent

The Taiwan Institute for Economic Research (TIER) lowered the growth forecast for Taiwan from 4.39 percent to 4.29 percent in light of the global slowdown and the United States sub-prime crisis.

The Taiwan Institute for Economic Research (TIER) lowered the growth forecast for Taiwan from 4.39 percent to 4.29 percent in light of the global slowdown and the United States sub-prime crisis. The Institute assured the public that there was no reason for immediate concern and that China's robust economy would make up for the US slowdown.

read source article
taiwan

Taiwan Beats out Japan and China for Merck Biotechnology Center

Taiwan has beaten rivals Japan and China in the bidding process for the construction of an Asia Technology Training Center (ATTC) in Taiwan.

Taiwan has beaten rivals Japan and China in the bidding process for the construction of an Asia Technology Training Center (ATTC) in Taiwan. Merck & Co. and the government funded Development Center for Biotechnology (DCB) jointly agreed to establish the ATTC in Taiwan. Merck will invest USD 308,000 for the training center, and 2-3 lab technicians. While the initial investment is considered small, the potential return on capital is exponential. The ATTC is designed to be a training center in addition to being a location for clients to inquire about technology transfers.

read source article
taiwan

2007; Highest Trade Surplus Year for Taiwan in History

Taiwan's ministry of finance announced Jan 7, 2008 that for the year 2007 Taiwan's total trade surplus was $27.4b.

Taiwan's ministry of finance announced Jan 7, 2008 that for the year 2007 Taiwan's total trade surplus was $27.4b. This amount exceeds the previous high of $22.6b recorded in 2006. The surplus comes from total exports of $246.7b against imports of $219.4b. Hong Kong, China and other ASEAN nations posted double digit export increases while exports to the US declined. Taiwan maintained a trade deficit, $30b, with japan and a surplus, $5b, with Europe.

read source article
taiwan

Taiwan's Per Capita GDP at 21st Worldwide

Taiwan announced Dec 14, 2007 that the country has the world's 21st per capita gross domestic product (GDP), when converted for purchasing power parity (PPP).

Taiwan announced Dec 14, 2007 that the country has the world's 21st per capita gross domestic product (GDP), when converted for purchasing power parity (PPP). The UN calculated the GDP using a human development index (HDI) which estimates GDP from this demographic data. Taiwan's HDI ranking increased from 31st in 1990 to 23rd in 2005. Higher HDI values indicate better development, the most recent ranking puts Taiwan in the category of "High human development."

read source article
taiwan

Taiwan to Share Science with South Korea

Taiwan will build a technology section in South Korea as part of a wide reaching plan to foster international exchange of basic scientific research.

Taiwan will build a technology section in South Korea as part of a wide reaching plan to foster international exchange of basic scientific research. This center will join ones in Russia, Australia, Vietnam, India, the Czech Republic, and the United States. These centers began as an effort to receive scientific assistance but now include providing assistance and have a more cooperative and sharing design. After South Korea the next target nation will be Brazil.

read source article
taiwan

Taiwan's Non-Financial Corporations Take the World Stage

Taiwanese non-financial companies are achieving globalization very competitively the Council for Economic Planning and Development (CEPD) officials said Dec 12.

Taiwanese non-financial companies are achieving globalization very competitively the Council for Economic Planning and Development (CEPD) officials said Dec 12. From 2004 to 2005 Taiwan's 18 largest non-financial transnational corporations increased their foreign assets by 55.3% and their foreign workforce by 41%; total foreign assets were estimated at $48.4b for 2005. The CEPD also noted that Taiwan increased its number of Forbes 500 companies from 3 to 6 during the period from 2006 to 2007.

read source article
taiwan

Taiwan's Information and Communications Technology Exports Boom

Taiwan's exports of information and communications technology (ICT) products increased from $76.2m for all of 2006 to $99.7m in just the first 10 months of 2007.

Taiwan's exports of information and communications technology (ICT) products increased from $76.2m for all of 2006 to $99.7m in just the first 10 months of 2007. The increase in total value is also an increase from 34% of total exports to 49.5%. The ICT industry employs about half of all manufacturing industry personnel in Taiwan.

read source article
taiwan

Taiwanese Government Presents Economic Growth Targets

The Taiwanese government announced that its plan for 2008 is to aim for an economic growth rate of 4.8% with an inflation rate below 2% while keeping the unemployment rate below 3.8%.

The Taiwanese government announced that its plan for 2008 is to aim for an economic growth rate of 4.8% with an inflation rate below 2% while keeping the unemployment rate below 3.8%. The Council for Economic Planning and Development (CEPD) also expects Taiwan's trade surplus to increase to 7% of GDP and overall exports to increase by 5%. The government will focus on the development of high tech industries such as wireless broadband and health care as well as boosting tourism.

read source article
taiwan

Taiwan Eyes Thailand’s Economic Plans

Recent economic decisions by Thailand have concerned members of the Taiwanese government.

Recent economic decisions by Thailand have concerned members of the Taiwanese government. Thailand has recently been discussing free trade agreements with a number of countries (Japan, China, South Korea, New Zealand, Peru, India, US, EU), but not Taiwan despite a significant and growing trade relationship between the two countries. Thailand has also drafted legislation to amend its Foreign Business Act in a manner expected to define more companies as foreign. Taiwan expressed these concerns and ones about Thailand's tariff policies at a recent WTO trade policy review session.

read source article
taiwan

Taiwan Blocks Chinese WTO Judge

Taiwan acted to prevent the appointment of a Chinese judge to the World Trade Organization appellate court, the court that rules on trade disputes between member nations.

Taiwan acted to prevent the appointment of a Chinese judge to the World Trade Organization appellate court, the court that rules on trade disputes between member nations. The block was via a procedural move, the removal of all court considerations, and was unexpected. In light of the Chinese government's official policy towards Taiwan (as a state subject to Chinese rule) this move is provocative.

read source article
taiwan

Taller Buildings for Taipei's Future

Taipei's cabinet resolved to increase the incentives for building taller buildings, this is intended to favor the building of taller buildings and foster urban renewal.

Taipei's cabinet resolved on November 14, 2007 to increase the incentives for building taller buildings by raising the floor-area ratio, the number of square feet of floor space per square foot of land area, that qualifies for incentives. This will favor the building of taller buildings and foster urban renewal as more profitable buildings can be produced. Additional programs by the government also favor construction near high-speed rail lines, waterfronts, and major public sector construction projects.

read source article
taiwan

Taiwan Exports Hit Record High for Fifth Month

Taiwan's exports reached a record high last month due to the strong demand for optoelectronic equipment, electrical engineering goods and information and telecom products

Taiwan's exports reached a record high last month due to the strong demand for optoelectronic equipment, electrical engineering goods and information and telecom products. Exports are reported to have reached USD 22.69 billion and imports surged 9.9 percent to USD 19.2 billion. These increases resulted in a trade surplus of USD 3.49 billion, up 48.3 percent from last month. Despite the increases, domestic demand for capital goods has decreased due to higher import costs for raw materials.

read source article
taiwan

European Chamber of Commerce Warns Taiwan About Economy

The European Chamber of Commerce of Taiwan (ECCT) has listed 10 ways for Taipei to improve the economy or they risk falling further behind their regional competitors.

The European Chamber of Commerce of Taiwan (ECCT) has listed 10 ways for Taipei to improve the economy or they risk falling further behind their regional competitors. The ECCT was responding to Taiwan's recent performance in the World Economic Forum's (WEF) 2007 Global Competitiveness Report which dropped Taiwan out of the leading economies in the region. The ECCT placed normalizing relations with China at the top of the list. The current ban on Chinese investment and imports is harming their attractiveness to foreign investors. Other remedies proposed by the ECCT include deregulating the financial service sector, developing a competitive taxation and tax incentive climate, opening the public procurement market and upgrading infrastructure, accelerating the development of the service industry and strengthening intellectual property rights protection. Taiwan's Council for Economic Planning and Development is planning a high level council meeting to respond to the ECCT's concerns.

read source article
taiwan

Taiwan’s Competitiveness Ranking Fall Alarms Press and Opposition

Taiwan's behind South Korea in the World Economic Forum's world competitiveness ranking has raised the concern of the Taiwanese press and opposition politicians.

Taiwan's behind South Korea in the World Economic Forum's world competitiveness ranking has raised the concern of the Taiwanese press and opposition politicians. Taiwan's ranking fell one place to No. 14, while South Korea's ranking moved up 12 places, from 2006's No. 23, to No. 11 this year. The WEF listing sent shock waves across the Taiwan, which along with South Korea was among Asia's so-called Four Small Dragons in the 1970s and 1980s. Taiwan's economy used to be stronger than that of South Korea. The United Daily News, the Economic Daily News and the Pacific Daily News all carried the story on their front cover with further analysis on the inside pages. The President of Taiwan, Chen Shui-bian, blamed the fall on the opposition parties desire to topple Chen. Opposition lawmaker Joanna Lei Chiang blamed President Chen's government's inefficiency for Taiwan's fall behind South Korea.

read source article
taiwan

Taiwan Overtaken by South Korea in World Economic Forum Ranking

South Korea overtook Taiwan for the first time in the annual World Economic Forum Ranking (WEF) for the first time in the annual listing.

South Korea overtook Taiwan for the first time in the annual World Economic Forum Ranking (WEF) for the first time in the annual listing. South Korea was able to move from No. 24 to No. 11 this year, while Taiwan moved down to No. 14. Taiwan had been ranked No. 8 in 2005 and fell to No. 13 last year. The Global Competitiveness Report 2007-2008 ranks 131 countries based on surveys of 11,000 business leaders and public data. Taiwan fell, according to the WEF, because of political instability, the inefficient government bureaucracy, and overall government instability.

read source article
taiwan

UBS AG to Start Taiwan Based Fund to Invest In Alternative Energy

UBS AG plans to start a Taiwan based fund that will invest in companies that are connected with clean energy and water.

UBS AG plans to start a Taipei based fund that will invest in companies that are connected with clean energy and water. UBS will attempt to raise NT 60.5 billion for the Global Innovators Fund. The stocks will be selected by UBS' Socially Responsible Investments team, which currently manages USD 2 billion. The Global Innovators Fund will plan on investing 75 percent of its assets in companies with products that help promote or produce a cleaner climate. However, the fund will not be investing in companies that produce biofuel from dietary crops or firms that produce nuclear power.

read source article
taiwan

TAIEX Could Challenge 10,000 Mark

The TAIEX rose 178.37 points to close at 9,809.88 points yesterday, the highest it has been since April 2000.

The TAIEX rose 178.37 points to close at 9,809.88 points yesterday, the highest it has been since April 2000. Han Hoi Precision Industry Co., Taiwan Semiconductor Manufacturing Co., Acer and United Microelectronics Corp. were several of the major stocks that led yesterday's seven-year record.

read source article
taiwan

Taiwan Government Allows Domestic Funds to Invest in China Stocks

The Taiwanese Executive Yuan (the Cabinet) has decided that domestic mutual funds and discretionary-account operations will be allowed to invest a portion of their net assets in Chinese stocks, and H and red-stocks on Hong Kong and Macao markets.

The decision by the Taiwanese Executive Yuan to open the market for domestic mutual funds and discretionary-account operations to invest in Chinese, Hong Kong and Macao stocks will have a liberalizing effect. In addition, the policy will grant domestic equity funds an equal footing with offshore funds, enabling them to participate in the strong rally of the Chinese and Hong Kong Markets in recent years.

read source article
taiwan

CPAs in Taiwan Have Bright Future

Chances for CPAs in Taiwan have become increasingly promising should the government succeed in expanding business.

Due to the increased IPO offerings in China, an increased accounting business in the Chinese market is expected to jump 40-50 percent annually in the coming years, which may lead to 10 percent external-business growth for Taiwanese accounting firms. Local firms are excited by the recent growth of U.S. accounting firms and their subsequent salary increases. Recent graduates in the accounting field have a good chance of becoming a partner in 10 years, opposed to the 20 years it may take a graduate pursuing a banking career.

read source article
taiwan

Goldman Sachs Raises Three Months Forecast

Goldman Sachs Group Inchas revised their three months forecasts for six Asian currencies in the light of expected Central Bank interventions in the respective countries. As inflation and growth accelerate the central banks are expected to try to strengthen their currencies.

Goldman Sachs Group Inchas revised their three months forecasts for six Asian currencies in the light of expected Central Bank interventions in the respective countries. As inflation and growth accelerate the central banks are expected to strengthen their currencies. The currencies under revisions are INR 39.50 per USD, from previous 41.30, MYR 3.33 compared to 3.41, PHP 43.50 from 45.50. Singapore's dollar is expected to gain to SGD 1.45 compared to SGD 1.51, TWD 32.00 from a prior TWD 32.50, THB 32.00 instead of THB 35.00.

read source article
taiwan

Taiwan's Project to Merge Three State-Owned Bank

Despite the objections from Taiwan's Financial Legislature, the government of Taiwan will still be continuing its project on merging Bank of Taiwan, The Land Bank of Taiwan and The Export-Import Bank of the ROC to form Taiwan Financial Holding Co.

Despite the objections from Taiwan's Financial Legislature, the government of Taiwan will still be continuing its project on merging Bank of Taiwan, The Land Bank of Taiwan and The Export-Import Bank of the ROC to form Taiwan Financial Holding Co. The legislators insisted the government to suspend the merging plan as they believed that the project was too vague and biased. Even so, the government still believes that the new holding company will bring a huge opportunity for Taiwan as it is predicted to become the nation's top financial service provider and also the 89th largest financial services company in the world.

read source article
taiwan

Taiwan Seeks Long-Term Coal Deals

Last week, two Taiwanese utilities sought to secure long-term coal supply deals for the next five to ten years, terms longer than the norm. Securing these long-term deals is prompted by growing concerns that China's demands for caol may sap Asian supplies for years to come.

Last week, two Taiwanese utilities sought to secure long-term coal supply deals for the next five to ten years, terms longer than the norm. Securing these long-term deals is prompted by growing concerns that China's demands for caol may sap Asian supplies for years to come. Taiwan power Co. (Taipower) and Ho-Ping Power Company issued the tenders last week to buy thermal coal from Australian, Indonesian and Chinese suppliers. The delivery for some supplies for as long as over 10 years reflects the anxiety many Asian utilities have, after a year in which prices soared to record highs.

read source article
taiwan

44 Taiwan Companies on Top 1,000 List of Industrial R&D;Investment Scoreboard

The 2007 EU Industrial R&D Investment Scoreboard showed that forty- four Taiwan companies were ranked among the top 1,000 non- EU companies that spend large sums of money for research and development.

The 2007 EU Industrial R&D Investment Scoreboard showed that forty- four Taiwan companies were ranked among the top 1,000 non- EU companies that spend large sums of money for research and development. Taiwan companies among the top list include Taiwan Semiconductor Manufacturing Co., BenQ Corp., Hon Hai Precision Industry, and other industries areas.

read source article
taiwan

Taiwan Financial Supervisory Commission To Expand Leeway For Off-Shore Banking Operations

Offshore banking unites (OBU) are the funding center for Taiwanese-invested firms in China, and they have been facing growing competition from foreign banks. In light of this foreign competition, the Financial Supervisory Commission (FSC) has decided to expand the leeway for OBU operation by raising the ceiling of unsecured loans for Taiwanese-invested firms to 15% of their assets, from the current level of 19%.

Offshore banking unites (OBU) are the funding center for Taiwanese-invested firms in China, and they have been facing growing competition from foreign banks.

read source article
taiwan

Yunta In Talks With South Korea and Japan Re Strategic Alliance

Victor Ma, president and CEO of Yuanta Financial Holdings revealed yesterday that Yuanta officials will meet with their South Korean and Japanese counterparts from two major South Korean and one major Japanese security firms to discuss entering into a strategic alliance.

Victor Ma, president and CEO of Yuanta Financial Holdings revealed yesterday that Yuanta officials will meet with their South Korean and Japanese counterparts from two major South Korean and one major Japanese security firms to discuss entering into a strategic alliance. If this alliance goes forward the two prospective partners may hold u pto 5-10% state in Yunta, wnich currently boasts NT$83 billion of paid-in capital. Victor Ma noted that the prospective strategic alliance with the South Korean and Japanese Firms will greatly faciliate development of the company's international business, such as boosting capability of the company in sponsoring issuacne of GDR (global depository receipts) projected up to US$500 million, up from US$300 million presently.

read source article
taiwan

Minor Taiwanese Silicon Foundries Filled Up With Orders

Taiwanese second-tier silicon foundries have entered into tremendous contracts for Power MOSFET and analog chips that have filled their production capacities and will likely keep their production lines at full capacity until November this year.

Taiwanese second-tier silicon foundries have entered into tremendous contracts for Power MOSFET and analog chips that have filled their production capacities and will likely keep their production lines at full capacity until November this year. One foundry supplier, Advanced Microelectronics Products, Inc. raked in record revenues of NT$144 million (US$4.3 million) in August alone. Busy orders enabled the company to begin turning into profitablility from loss in the second quarter, shaking off loss for 10 consecutive quarters.

read source article
taiwan

Taiwan Leads Forbes Best Of List

Taiwan lead China in a list of the best 200 Asian companies with annual revenues under US$1 billion, Forbes Asia business magazine said Wednedsay.

Taiwan lead China in a list of the best 200 Asian companies with annual revenues under US$1 billion, Forbes Asia business magazine said Wednedsay. Under the company's "Best Under A Billion" article, the publication stated Taiwan had 41 small and mid-sized companies named as winners against China's 23. Forbes Asia noted nearly all 41 Taiwanese companies on the list are from the information sector, and 8 out of 10 companies on the overall list are making their debut this year.

read source article
taiwan

Taiwan Exploring Joint Trade Opportunities with Several Central American Countries

The 2004 free-trade agreement between Taiwan and Panama has allowed an opportunity for these countries to strengthen economic ties in sectors such as construction, technology, energy and services. Bilateral trade totaled over USD 217 million just last year.

The 2004 free-trade agreement between Taiwan and Panama has allowed an opportunity for these countries to strengthen economic ties in sectors such as construction, technology, energy and services; bilateral trade totaled over USD 217 million just last year. Five additional Central American countries have signed free-trade agreements with Taipei, allowing a means for Taiwanese goods to enter certain North American markets.

read source article
taiwan

H&Q;Asia Pacific and Merril Lynch & Co. Buy Controlling Stake In Primax

A group of investors, including H&Q Asia Pacific and Merrill Lynch bought a controlling interest in Primax Electronics Ltd., the Taiwanese maker of computer mice and paper shredders. Primax is valued at NT. $8.6 billion.

A group of investors, including H&Q Asia Pacific and Merrill Lynch bought a controlling interest in Primax Electronics Ltd., the Taiwanese maker of computer mice and paper shredders. Primax is valued at NT. $8.6 billion.

read source article
taiwan

Australia: Woodside Petroleum Eyes Taiwanese Buyers

Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, has announced that it has explored discussions with Taiwan's CPC Corporation, among other potential Asian buyers, regarding liquefied natural gas (LNG) sales. Although a Woodside spokesperson declined to confirm speculation, many analysts believe the dialogue was focused on Woodside's Browse project in Western Australia, which is a gas field estimated to contain 20 trillion cubic feet of gas and 300 million barrels of condensate. Taiwan's LNG demand is forecasted to rise 31 percent to 10.5 million metric tons in 2010, and that figure is expected to double by the end of the next decade. Taiwan uses LNG for 90 percent of its total gas and is Asia's third-largest buyer, behind Japan and South Korea.

Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, has announced that it has explored discussions with Taiwan's CPC Corporation, among other potential Asian buyers, regarding liquefied natural gas (LNG) sales. Although a Woodside spokesperson declined to confirm speculation, many analysts believe the dialogue was focused on Woodside's Browse project in Western Australia, which is a gas field estimated to contain 20 trillion cubic feet of gas and 300 million barrels of condensate. Taiwan's LNG demand is forecasted to rise 31 percent to 10.5 million metric tons in 2010, and that figure is expected to double by the end of the next decade. Taiwan uses LNG for 90 percent of its total gas and is Asia's third-largest buyer, behind Japan and South Korea.

read source article
taiwan

Mediatek Buys ADI's Wireless Chip Business for USD$350Million

Mediatek,Inc., Taiwan's top chip designer, announced its acquistionof ADI's wireless chip business for USD $350 million in cash, in a move to expand its share in China's handset market.

Mediatek,Inc., Taiwan's top chip designer, announced its acquistionof ADI's wireless chip business for USD $350 million in cash, in a move to expand its share in China's handset market. Mediatek also sells ships for DVD players and digital televisions. The wireless chip business generated approximately USD$230 million in revenue for ADI for fiscal year 2006

read source article
taiwan

JPMorgan Client Report Downgrades Taiwan Stocks

Based on concerns about weakening U.S. consumer demand, JPMorgan Chase & Co. downgraded Taiwan stocks.

Based on concerns about weakening U.S. consumer demand, JPMorgan Chase & Co. downgraded Taiwan stocks. In a note to clients dated yesterday, 3 JPMorgan analysts advised that investors should be "underweight" in Taiwan equities. This recommendation comes as TAIEX, the Taiwanese stock exchange, jumped 7.4 percent last wekk -- the biggest weekly advance since October 2002.

read source article
taiwan

Financial Analysts Split On Action Central Bank Will Take In Response to U.S. Subprime Mortgage Crisis

Financial analysts at two major brokerage firms are split on what actions they believe Taiwan's Central Bank will take at it's quarterly meeting next month to respond to the U.S. subprime mortgage crisis. In it's latest report issued yesterday, Lehman Brothers predicts that the Central Bank is likely to keep interest rates unchanged, given a weakening economic growth outlook. However, Citigroup believes the U.S. credit crucnh will have a limited impact on the Taiwanese economy, and believes that the Central Bank will likely raise the benchmank interest rate by another 0.125% next month at its meeting.

Financial analysts at two major brokerage firms are split on what actions they believe Taiwan's Central Bank will take at it's quarterly meeting next month to respond to the U.S. subprime mortgage crisis. In it's latest report issued yesterday, Lehman Brothers predicts that the Central Bank is likely to keep interest rates unchanged, given a weakening economic growth outlook. However, Citigroup believes the U.S. credit crucnh will have a limited impact on the Taiwanese economy, and believes that the Central Bank will likely raise the benchmank interest rate by another 0.125% next month at its meeting.

read source article
taiwan

Taiwan Stocks Reach Highest Levels In Three Years

Taiwan stocks rose the most in more than three years yesterday. The TAIEX rose 5.3% to close at 8,515.60, it's biggest gain since May 2004, after dropping 9.4% last week. Cathay Financial Holding Co. lead all gainers after the US Federal Reserve Bank cut its discount loan rate to contain instability in financial markets caused by the collaspe of some U.S. subprime mortgage-backed investments.

Taiwan stocks rose the most in more than three years yesterday. The TAIEX rose 5.3% to close at 8,515.60, it's biggest gain since May 2004, after dropping 9.4% last week. Cathay Financial Holding Co. lead all gainers after the US Federal Reserve Bank cut its discount loan rate to contain instability in financial markets caused by the collaspe of some U.S. subprime mortgage-backed investments.

read source article
taiwan

U.S. Subprime Mortgage Crisis Could Cause 10% Earnings Per Share Decline In Taiwan Technology Firms

A recent report from Citigroup Research issued last week states that the U.S. subprime mortgage crisis sould cause Taiwanese technology firns' earnings per share (EPS) to decline by as much as 10%. The report was based on the corporate exposure of key Taiwanese tech firms and a sensitivity analysis of the U.S. consumer.

A recent report from Citigroup Research issued last week states that the U.S. subprime mortgage crisis sould cause Taiwanese technology firns' earnings per share (EPS) to decline by as much as 10%. The report was based on the corporate exposure of key Taiwanese tech firms and a sensitivity analysis of the U.S. consumer.

read source article
taiwan

Taiwanese Government to Form State-Owned Financial Holding Company

The Taiwanese government plans to form a state-owned financial holding company in an attempt to consolidate the sector to compete with foreign banks. The Taiwan Financial Holding Company will be the result of a merger between the Bank of Taiwan, the Land Bank of Taiwan, and the Export-Import Bank of the ROC.

The Taiwanese government plans to form a state-owned financial holding company in an attempt to consolidate the sector to compete with foreign banks. The Taiwan Financial Holding Company will be the result of a merger between the Bank of Taiwan, the Land Bank of Taiwan, and the Export-Import Bank of the ROC.

read source article
taiwan

Taiwan Gets Support for UN Bid

John Bolton, a former US ambassador to the UN, has expressed his support for Taiwan's membership to the UN. He states that Taiwan's representation is suitable, and that the only question is that the country needs to decide on what name to use to join the UN. He had previously voiced his support for Taiwan's membership to the UN in 2001.

John Bolton, a former US ambassador to the UN, has expressed his support for Taiwan's membership to the UN. He states that Taiwan's representation is suitable, and that the only question is that the country needs to decide on what name to use to join the UN. He had previously voiced his support for Taiwan's membership to the UN in 2001.

read source article
taiwan

Taiwanese Firms Look to Solar Cell Technology

Amidst rising oil prices and environmental concerns, Taiwanese manufacturing firms are looking to boost revenue through solar cell production. Local solar cell manufacturers are to triple their revenue to TWD 60 billion this year, with most of their exports to Europe and the US.

Amidst rising oil prices and environmental concerns, Taiwanese manufacturing firms are looking to boost revenue through solar cell production. Local solar cell manufacturers are to triple their revenue to TWD 60 billion this year, with most of their exports to Europe and the US.

read source article
taiwan

Taiwan Insurers' Losses Limited

Taiwan vice chairwoman of the Financial Supervisory Commission said that the country's life insurers have reported potential loss estimates which appear to be limited. These estimates already incorporate the index's declines in the past few days. However, some firms have not yet booked their losses on investments that are to be held until maturity.

Taiwan vice chairwoman of the Financial Supervisory Commission said that the country's life insurers have reported potential loss estimates which appear to be limited. These estimates already incorporate the index's declines in the past few days. However, some firms have not yet booked their losses on investments that are to be held until maturity.

read source article
taiwan

Taiwan's Export Growth Expected to Slow

Taiwan's export growth is expected to slow in the face of China's cutting export-tax rebates on nearly 3,000 exports. Taiwan relies on China, it's largest market, to help sustain economic growth amid weaker U.S. demand. In addition, the subprime loan crisis in the U.S., Taiwan's second largest export destination, is bound to eliminate or significantly reduce wealth in average households. This means that exports may suffer even more, specifically in consumer electronics.

Taiwan's export growth is expected to slow in the face of China's cutting export-tax rebates on nearly 3,000 exports. Taiwan relies on China, it's largest market, to help sustain economic growth amid weaker U.S. demand. In addition, the subprime loan crisis in the U.S., Taiwan's second largest export destination, is bound to eliminate or significantly reduce wealth in average households. This means that exports may suffer even more, specifically in consumer electronics.

read source article
taiwan

Taiwan Expects Improved Finances in 2008 Budget

Taiwan's central government has decreased its budget income from inheritance tax for 2008 by TWD 11.4 billion from its 2007 level. The maximum marginal tax rate on inheritance was decreased from 50% to 40%, and is expected to impact the finances of municipal governments. Despite the tax cuts, the draft of the 2008 budget still expects the central government's budget income to increase from the growth of stock transaction taxes and personal income taxes.

Taiwan's central government has decreased its budget income from inheritance tax for 2008 by TWD 11.4 billion from its 2007 level. The maximum marginal tax rate on inheritance was decreased from 50% to 40%, and is expected to impact the finances of municipal governments. Despite the tax cuts, the draft of the 2008 budget still expects the central government's budget income to increase from the growth of stock transaction taxes and personal income taxes.

read source article
taiwan

Taiwan Stocks Rally

For the second day on Friday, Taiwan stocks rose following overnight Wall Street gains, which may have been helped with the demand for electronics and the positive third quarter outlooks given by technology companies. The Taiwan insurance stocks had fallen previously following the disclosure of losses on securities due to subprime mortgages.

For the second day on Friday, Taiwan stocks rose following overnight Wall Street gains, which may have been helped with the demand for electronics and the positive third quarter outlooks given by technology companies. The Taiwan insurance stocks had fallen previously following the disclosure of losses on securities due to subprime mortgages.

read source article
taiwan

Taiwan Cuts Agriculture Taxes in Half

The Taiwan government announced yesterday that tariffs on seven agricultural products will be cut in half, in an attempt to stabilize rising consumer prices. These cuts will cause Taiwan to lose from NTD 200 million to NTD 300 million. Economists are predicting that these attempts will not help ease prices, because companies can no longer absorb surging costs. The wholesale price index has increased 7.11 percent during the first six months of the year, yet the consumer price index only increased 0.61 percent.

The Taiwan government announced yesterday that tariffs on seven agricultural products will be cut in half, in an attempt to stabilize rising consumer prices. These cuts will cause Taiwan to lose from NTD 200 million to NTD 300 million. Economists are predicting that these attempts will not help ease prices, because companies can no longer absorb surging costs. The wholesale price index has increased 7.11 percent during the first six months of the year, yet the consumer price index only increased 0.61 percent.

read source article
taiwan

Taiwan Stock Exchange Drops to Five Week Low

At closing on Wednesday, the Taiwan stock exchange dropped to a five week low at 8,891.88 shares. The 4.3 percent drop is attributed to worries about the U.S. subprime mortgage sector problems and regional market losses. Another contribution to the drop was the large scale selling of the yen. The financial index also dropped on Wednesday, a loss of 5.7 percent.

At closing on Wednesday, the Taiwan stock exchange dropped to a five week low at 8,891.88 shares. The 4.3 percent drop is attributed to worries about the U.S. subprime mortgage sector problems and regional market losses. Another contribution to the drop was the large scale selling of the yen. The financial index also dropped on Wednesday, a loss of 5.7 percent.

read source article
taiwan

Fears of Increasing Interest Rates Cause Taiwan Bonds to Fall

Concerns that the Taiwanese central bank will increase interest rates due to increasing consumer prices have caused bonds to fall for a second day in a row. The central bank initiated the 12th consecutive increase in the benchmark rate, raising it to 3.125 percent in June. Prices fell NTD 147.7 per NTD 100,000 face amount. The Taiwanese dollar gained 0.1 percent.

Concerns that the Taiwanese central bank will increase interest rates due to increasing consumer prices have caused bonds to fall for a second day in a row. The central bank initiated the 12th consecutive increase in the benchmark rate, raising it to 3.125 percent in June. Prices fell NTD 147.7 per NTD 100,000 face amount. The Taiwanese dollar gained 0.1 percent.

read source article
taiwan

Taiwan Government to Keep Floating Oil Prices

The Taiwanese government announced that it will continue to use a floating price mechanism to determine oil prices, despite the sharp fluctuations in oil prices. State-run oil company CPC Corp. links domestic fuel prices to benchmark prices of West Texas Intermediate (WTI) crude oil. The President hopes that state-run businesses could lower their profit target so that there is more room for oil price adjustments.

The Taiwanese government announced that it will continue to use a floating price mechanism to determine oil prices, despite the sharp fluctuations in oil prices. State-run oil company CPC Corp. links domestic fuel prices to benchmark prices of West Texas Intermediate (WTI) crude oil. The President hopes that state-run businesses could lower their profit target so that there is more room for oil price adjustments.

read source article
taiwan

Biotech Industry in Taiwan Up 12 Percent

The medical and biotechnology industry experienced a 12 percent growth in revenues for 2006, hitting NTD 179.1 billion. This increase was driven by medical equipment which accounted for NTD 160 billion, and pharmaceuticals which hit NTD 66 billion. The Taiwanese government is leading a campaign to further develop the biotech industry in Taiwan by establishing a platform to cooperate and provide services for manufacturers.

The medical and biotechnology industry experienced a 12 percent growth in revenues for 2006, hitting NTD 179.1 billion. This increase was driven by medical equipment which accounted for NTD 160 billion, and pharmaceuticals which hit NTD 66 billion. The Taiwanese government is leading a campaign to further develop the biotech industry in Taiwan by establishing a platform to cooperate and provide services for manufacturers.

read source article
taiwan

Risk Premium Spread Rises Among Taiwan Banks

Rising risk awareness among Taiwanese banks is causing premiums to increase, which is reducing their debt-raising capacity and funding costs. Standard and Poor's Ratings Service has reported that due to fears that the regulator will take over more weak banks and the collapse of the Rebar Asia Pacific Group, the market is favoring only the most creditworthy banks in the first half.

Rising risk awareness among Taiwanese banks is causing premiums to increase, which is reducing their debt-raising capacity and funding costs. Standard and Poor's Ratings Service has reported that due to fears that the regulator will take over more weak banks and the collapse of the Rebar Asia Pacific Group, the market is favoring only the most creditworthy banks in the first half.

read source article
taiwan

Asian Stocks Plunge as US Housing Slump Deepens

Asian stocks extended a rout that erased USD 1.3 trillion in global market value yesterday, as the Morgan Stanley Capital International Asia-Pacific Index slipped 3 percent to hit 154.45 at 7:33 pm in Tokyo. It is the index's largest decline since March 5 and worst weekly performance of the year. All markets in the region declined with the exception of China. Japan's Nikkei 225 Stock Average fell 2.4 percent, while the benchmark indices of South Korea (Kospi) and Taiwan (Taiex) both dropping more than 4 percent.

Asian stocks extended a rout that erased USD 1.3 trillion in global market value yesterday, as the Morgan Stanley Capital International Asia-Pacific Index slipped 3 percent to hit 154.45 at 7:33 pm in Tokyo. It is the index's largest decline since March 5 and worst weekly performance of the year. All markets in the region declined with the exception of China. Japan's Nikkei 225 Stock Average fell 2.4 percent, while the benchmark indices of South Korea (Kospi) and Taiwan (Taiex) both dropping more than 4 percent.

read source article
taiwan

BHP Billiton, Miners Pace Asia-Pacific Index Losses

Slumping metal prices led Australian mining giant BHP Billiton Ltd. to complete its largest 2-day drop in nearly 5 months, joining miners across the region as the industry dragged down the regional benchmark index. Japan's Nippon Electric Glass Co. and Advantest Corp. fell as well, hurt by a downward adjustment in their earnings reports. The Morgan Stanley Capital International Asia-Pacific Index declined by 1.2 percent, hitting 158.64 at 6:04 pm in Tokyo. The key indexes of Australia, Hong Kong, Singapore and Indonesia, all posters of record highs earlier in the week, declined on Thursday. Benchmarks in South Korea and Taiwan suffered their largest declines in over 4 months.

Slumping metal prices led Australian mining giant BHP Billiton Ltd. to complete its largest 2-day drop in nearly 5 months, joining miners across the region as the industry dragged down the regional benchmark index. Japan's Nippon Electric Glass Co. and Advantest Corp. fell as well, hurt by a downward adjustment in their earnings reports. The Morgan Stanley Capital International Asia-Pacific Index declined by 1.2 percent, hitting 158.64 at 6:04 pm in Tokyo. The key indexes of Australia, Hong Kong, Singapore and Indonesia, all posters of record highs earlier in the week, declined on Thursday. Benchmarks in South Korea and Taiwan suffered their largest declines in over 4 months.

read source article
taiwan

Foreign Companies Invest in Vietnam's Steel Industry

Vietnam's steel industry is attracting foreign investors because of strong domestic demand that is growing by 40 percent per year. India's Tata Group, one is the largest international steel companies, will operate a USD 3.5 billion facility in Vietnam that will produce 4.5 million tons of steel per year. Other steel companies including Korea's Posco Group, India's Essar, and Taiwan's Tycoons and E-United are all investing in Vietnam's growing steel industry.

Vietnam's steel industry is attracting foreign investors because of strong domestic demand that is growing by 40 percent per year. India's Tata Group, one is the largest international steel companies, will operate a USD 3.5 billion facility in Vietnam that will produce 4.5 million tons of steel per year. Other steel companies including Korea's Posco Group, India's Essar, and Taiwan's Tycoons and E-United are all investing in Vietnam's growing steel industry.

read source article
taiwan

Myanmar Does Not Support Taiwan UN Membership

The military-backed government of Myanmar announced last week that they do not support United Nations membership for Taiwan. According to a statement issued by the Ministry of Foreign Affairs, the government believes such action would increase tension between Taiwan and China and possibly put the stability of the region into jeopardy. "As a nation which has steadfastly nurtured the friendly relations with the People's Republic of China, the Union of Myanmar has consistently adhered to the principle of ‘One China Policy' and regards Taiwan as an integral part of China," the statement said.

The military-backed government of Myanmar announced last week that they do not support United Nations membership for Taiwan. According to a statement issued by the Ministry of Foreign Affairs, the government believes such action would increase tension between Taiwan and China and possibly put the stability of the region into jeopardy. "As a nation which has steadfastly nurtured the friendly relations with the People's Republic of China, the Union of Myanmar has consistently adhered to the principle of ‘One China Policy' and regards Taiwan as an integral part of China," the statement said.

read source article
taiwan

Taipei Levies Tax to Protect Domestic Shoe Industry

To protect the domestic shoe industry, Taiwan's Ministry of Finance will levy an anti-dumping tax of 43.46 percent on footwear imported from China. The restriction will last until March 15, 2012. The ministry believes that the tax will not have a negative impact on the nation's economy.

To protect the domestic shoe industry, Taiwan's Ministry of Finance will levy an anti-dumping tax of 43.46 percent on footwear imported from China. The restriction will last until March 15, 2012. The ministry believes that the tax will not have a negative impact on the nation's economy.

read source article
taiwan

Taiwan to Allow Medical Visits from China

In an effort to bring in foreign currency and promote its image, Taiwan will allow direct visits from overseas Chinese for medical purposes. Within three years, it plans to have 100,000 foreign medical visitors, create 3,500 jobs, and generate NTD 7 billion (USD 212 million) in revenue . It is unclear how China will respond.

In an effort to bring in foreign currency and promote its image, Taiwan will allow direct visits from overseas Chinese for medical purposes. Within three years, it plans to have 100,000 foreign medical visitors, create 3,500 jobs, and generate NTD 7 billion (USD 212 million) in revenue . It is unclear how China will respond.

read source article
taiwan

Taiwan to Buy Apache Helicopters from US

In a move that will certainly draw attention from China, Taiwan plans to buy 30 Apache helicopters worth USD 1.5 billion from the United States. China is expected to pressure the US not to approve the sale as it does not want its cross-strait rival to have access to foreign advanced military weapons.

In a move that will certainly draw attention from China, Taiwan plans to buy 30 Apache helicopters worth USD 1.5 billion from the United States. China is expected to pressure the US not to approve the sale as it does not want its cross-strait rival to have access to foreign advanced military weapons.

read source article
taiwan

Taiwan and US Trade Officials Meet

Delegates from Taiwan will meet with US officials in Washington today to discuss the possibility of resolving trade disputes and increasing US investment in Taiwan, especially in the service sector. In addition, issues regarding intellectual property rights, market access for rice exports and government procurement policies in relation to pharmaceuticals and the telecommunications sector will be discussed. This meeting occurs after South Korea and the US agreed on a free trade agreement last month, which may cut USD 2 billion worth of Taiwan's exports to the US.

Delegates from Taiwan will meet with US officials in Washington today to discuss the possibility of resolving trade disputes and increasing US investment in Taiwan, especially in the service sector. In addition, issues regarding intellectual property rights, market access for rice exports and government procurement policies in relation to pharmaceuticals and the telecommunications sector will be discussed. This meeting occurs after South Korea and the US agreed on a free trade agreement last month, which may cut USD 2 billion worth of Taiwan's exports to the US.

read source article
taiwan

Carlyle Group Enters Taiwan Banking Industry

Carlyle Group, a US private equity firm, has bought a 35 percent stake in Taiwan's Ta Chong Bank. Carlyle will pay NTD 17 per share, a 41.7 premium over its closing price on Monday. As Taiwan's banking sector emerges from consumer credit problems, foreign financial institutions have been eager to take advantage of the undervalued bank equities.

Carlyle Group, a US private equity firm, has bought a 35 percent stake in Taiwan's Ta Chong Bank. Carlyle will pay NTD 17 per share, a 41.7 premium over its closing price on Monday. As Taiwan's banking sector emerges from consumer credit problems, foreign financial institutions have been eager to take advantage of the undervalued bank equities.

read source article
taiwan

Strong Asia-Pacific Currencies Lead to Slip in Regional Stocks

The Morgan Stanley Capital International Asia-Pacific Index slipped 0.1 percent on Tuesday to close at 157.81, as Asia-Pacific currencies such as the yen and Australian dollar traded strong. The Aussie dollar traded near an 18-year high while the yen experienced a pause in its weakening trend as it strengthened against both the US dollar and the euro. Markets dropped across the region except in Taiwan, Hong Kong, Indonesia and Thailand. Thailand's SET index was the region's biggest gainer, jumping 1.7 percent.

The Morgan Stanley Capital International Asia-Pacific Index slipped 0.1 percent on Tuesday to close at 157.81, as Asia-Pacific currencies such as the yen and Australian dollar traded strong. The Aussie dollar traded near an 18-year high while the yen experienced a pause in its weakening trend as it strengthened against both the US dollar and the euro. Markets dropped across the region except in Taiwan, Hong Kong, Indonesia and Thailand. Thailand's SET index was the region's biggest gainer, jumping 1.7 percent.

read source article
taiwan

Taiwan's June Exports Increase 11 Percent

Taiwan's exports increased 11 percent from a year earlier, which is more than double the expectation of a Bloomberg News survey of 11 economists. The rise in exports can be attributed to increased shipments to Europe and China, which has experienced strong economic growth. Economists at Goldman Sachs expect a rise in domestic demand that will accelerate economic growth from 4.5 percent in 2007 to 5.5 percent in 2008.

Taiwan's exports increased 11 percent from a year earlier, which is more than double the expectation of a Bloomberg News survey of 11 economists. The rise in exports can be attributed to increased shipments to Europe and China, which has experienced strong economic growth. Economists at Goldman Sachs expect a rise in domestic demand that will accelerate economic growth from 4.5 percent in 2007 to 5.5 percent in 2008.

read source article
taiwan

Taiwan Plans to Increase Investments in Bangladesh

Taiwan plans to increase investments in Bangladesh's export processing zones, particularly in the leather and textile sectors. In 2006, Bangladesh imported about USD 500 million from Taiwan while it sent only USD 24 million back to the island. Bangladesh imports machinery, electronics and steel among others, while Taiwan imports shrimp, leather, handicrafts and teas.

Taiwan plans to increase investments in Bangladesh's export processing zones, particularly in the leather and textile sectors. In 2006, Bangladesh imported about USD 500 million from Taiwan while it sent only USD 24 million back to the island. Bangladesh imports machinery, electronics and steel among others, while Taiwan imports shrimp, leather, handicrafts and teas.

read source article
taiwan

Taiwan Financial Stocks May Rise

Analysts believe that brokerage and insurance firms will drive financial stocks upward during the second half of this year. Mega Securities holds this favorable view due to a lack of new shocks and the pricing of old bearish factors by investors. It also expects insurance companies to increase their profitability as their investment portfolios generate considerable dividends.

Analysts believe that brokerage and insurance firms will drive financial stocks upward during the second half of this year. Mega Securities holds this favorable view due to a lack of new shocks and the pricing of old bearish factors by investors. It also expects insurance companies to increase their profitability as their investment portfolios generate considerable dividends.

read source article
taiwan

Morgan Stanley Asia-Pacific Index Recovers on Monday

As a number of Asia-Pacific's exchanges surged on Monday, Morgan Stanley's International Asia-Pacific Index jumped 1.1 percent to 157.95, recovering from a 0.1 percent slip on July 6. Japan's Nikkei 225 hit a seven-year high, South Korea's Kospi hit a fourth straight high, Taiwan's Taiex realized a sixth straight day of gains, and Singapore's Straits Times hit an eleven-week high. Benchmarks climbed everywhere in the region except in the Philippines, where the SET Index fell. China's CSI 300 paced all benchmark gains.

As a number of Asia-Pacific's exchanges surged on Monday, Morgan Stanley's International Asia-Pacific Index jumped 1.1 percent to 157.95, recovering from a 0.1 percent slip on July 6. Japan's Nikkei 225 hit a seven-year high, South Korea's Kospi hit a fourth straight high, Taiwan's Taiex realized a sixth straight day of gains, and Singapore's Straits Times hit an eleven-week high. Benchmarks climbed everywhere in the region except in the Philippines, where the SET Index fell. China's CSI 300 paced all benchmark gains.

read source article
taiwan

Taiwan Aims to Reduce Harmful Gas Emissions

To reduce its reliance on energy imports and emissions of greenhouse gases, Taiwan plans a 25-fold increase in biodiesel use in the next three years. It plans to use soybeans, sunflower seeds and recycled cooking oil to make the fuel and turn sweet potatoes and corn into ethanol. The plan is awaiting approval.

To reduce its reliance on energy imports and emissions of greenhouse gases, Taiwan plans a 25-fold increase in biodiesel use in the next three years. It plans to use soybeans, sunflower seeds and recycled cooking oil to make the fuel and turn sweet potatoes and corn into ethanol. The plan is awaiting approval.

read source article
taiwan

Taiwan's CPI Rises

Due to increases in fuel and medicine prices, Taiwan's seasonally adjusted consumer price index for June rose 0.13 percent, according to the Directorate General of Budget, Accounting and Statistics. Last month's core price index and wholesale price index rose 0.92 and 5.54 percent, respectively year on year. In addition, inflation is expected to increase to 1.9 percent in the third quarter and 2 percent in the last quarter.

Due to increases in fuel and medicine prices, Taiwan's seasonally adjusted consumer price index for June rose 0.13 percent, according to the Directorate General of Budget, Accounting and Statistics. Last month's core price index and wholesale price index rose 0.92 and 5.54 percent, respectively year on year. In addition, inflation is expected to increase to 1.9 percent in the third quarter and 2 percent in the last quarter.

read source article
taiwan

UBS to Increase Presence in Taiwan

UBS plans to double its Taiwan private banking assets by 2009 as it aims to take advantage of Asia's booming market. It also plans to boost its share of Taiwan's wealth management market from 1 percent to 10 percent by 2015. Taiwan has attracted global asset managers as more of its wealthy individuals are shifting capital from savings to financial planning accounts.

UBS plans to double its Taiwan private banking assets by 2009 as it aims to take advantage of Asia's booming market. It also plans to boost its share of Taiwan's wealth management market from 1 percent to 10 percent by 2015. Taiwan has attracted global asset managers as more of its wealthy individuals are shifting capital from savings to financial planning accounts.

read source article
taiwan

Nomura Holdings: Pick Thailand and Taiwan Stocks

According to Nomura Holdings Inc., Thailand and Taiwan are its region's best selections for investors. Both markets are perceived to be undervalued as Thailand and Taiwan's stock exchanges are valued at 11 times earnings and 13 times earnings respectively. India and China's exchanges are trading at 21 and 41 times earnings.

According to Nomura Holdings Inc., Thailand and Taiwan are its region's best selections for investors. Both markets are perceived to be undervalued as Thailand and Taiwan's stock exchanges are valued at 11 times earnings and 13 times earnings respectively. India and China's exchanges are trading at 21 and 41 times earnings.

read source article
taiwan

Taiwan and US to Continue Trade Talks

Taiwan and the United States will hold a sixth round of trade talks next week in Washington DC. Taiwan seeks to reach a free trade agreement in order to lower tariffs and other barriers to trade. Last year, trade between the island and the US amassed to USD 61 billion.

Taiwan and the United States will hold a sixth round of trade talks next week in Washington DC. Taiwan seeks to reach a free trade agreement in order to lower tariffs and other barriers to trade. Last year, trade between the island and the US amassed to USD 61 billion.

read source article
taiwan

Nicaragua Wants More Help from Taiwan

Nicaraguan legislators want more help from Taiwan, which is desperately trying to maintain diplomatic ties with its 24 allies. The lawmakers want Taiwan to help advance electricity, cargo transport, postal services and telecommunications around Central America.

Nicaraguan legislators want more help from Taiwan, which is desperately trying to maintain diplomatic ties with its 24 allies. The lawmakers want Taiwan to help advance electricity, cargo transport, postal services and telecommunications around Central America.

read source article
taiwan

Merrill Lynch: Strong Emerging Markets

According to Merrill Lynch, emerging markets grew 16.1 percent in the first six months of 2007 while developed markets grew 8 percent. Asia equities rose 17.3 percent and were led by China and South Korea. The industrials and material sectors were the best performers while the consumer staples and IT sectors were the worst performers.

According to Merrill Lynch, emerging markets grew 16.1 percent in the first six months of 2007 while developed markets grew 8 percent. Asia equities rose 17.3 percent and were led by China and South Korea. The industrials and material sectors were the best performers while the consumer staples and IT sectors were the worst performers.

read source article
taiwan

US-Korea Trade Agreement May Hurt Taiwan

Taiwan's Economics Ministry states that the US-South Korean free trade agreement (FTA) will erase 20,000 jobs in Taiwan and USD 2 billion in trade between Taiwan and the US. According to the ministry, Taiwan's traditional industries such as the textile, garment, bicycle, plastics and rubber shoes industries will suffer the most. Taiwan wants to sign an FTA with the US, but the US does not want to anger China.

Taiwan's Economics Ministry states that the US-South Korean free trade agreement (FTA) will erase 20,000 jobs in Taiwan and USD 2 billion in trade between Taiwan and the US. According to the ministry, Taiwan's traditional industries such as the textile, garment, bicycle, plastics and rubber shoes industries will suffer the most. Taiwan wants to sign an FTA with the US, but the US does not want to anger China.

read source article
taiwan

Taiwan Property Market to Slow

Due to increased restrictions on housing loans, the property market is expected to contract during the next few quarters. The index of leading property indicators, which projects market conditions for the short run, fell 1.1 percent, hinting that the property market may slow. In addition, a survey of construction companies, real estate brokers, financial institutions and other property-related industries revealed a more conservative outlook for the market.

Due to increased restrictions on housing loans, the property market is expected to contract during the next few quarters. The index of leading property indicators, which projects market conditions for the short run, fell 1.1 percent, hinting that the property market may slow. In addition, a survey of construction companies, real estate brokers, financial institutions and other property-related industries revealed a more conservative outlook for the market.

read source article
taiwan

US Free Trade Pact Angers South Korean Workers

In response to the free trade agreement between South Korea and the United States, South Korea's largest labor union promoted a strike in which over 100,000 members of the Korean Metal Workers' Union walked off the job for four hours. Although the reduction of tariffs and other trade barriers will increase commerce, the workers are worried that they will hurt job security. The trade agreement is expected to pass through US Congress on June 30.

In response to the free trade agreement between South Korea and the United States, South Korea's largest labor union promoted a strike in which over 100,000 members of the Korean Metal Workers' Union walked off the job for four hours. Although the reduction of tariffs and other trade barriers will increase commerce, the workers are worried that they will hurt job security. The trade agreement is expected to pass through US Congress on June 30.

read source article
taiwan

Taiwan Government Allows Investment in China

Four Taiwanese chip testing and packaging firms have received approval from Taiwan's government to invest in China. In addition, three other Taiwanese companies were allowed to set up facilities on the mainland. Despite being more lax on cross strait economic relations, Taiwan still strictly controls investments into China.

Four Taiwanese chip testing and packaging firms have received approval from Taiwan's government to invest in China. In addition, three other Taiwanese companies were allowed to set up facilities on the mainland. Despite being more lax on cross strait economic relations, Taiwan still strictly controls investments into China.

read source article
taiwan

TIER: Lower Interest Rates and Higher Surplus for Taiwan

The Taiwan Institute of Economic Research (TIER) expects Taiwan's low interest rates and currency to remain relatively stable in the short run. In addition, the trade surplus for the first five months of the year increased by 39.8 percent from the same period last year. In a survey conducted by TIER, manufacturers are holding a more conservative sentiment on the next six months due to rising material prices.

The Taiwan Institute of Economic Research (TIER) expects Taiwan's low interest rates and currency to remain relatively stable in the short run. In addition, the trade surplus for the first five months of the year increased by 39.8 percent from the same period last year. In a survey conducted by TIER, manufacturers are holding a more conservative sentiment on the next six months due to rising material prices.

read source article
taiwan

Citigroup: Invest in Taiwan

Citigroup Global Markets is recommending that investors take advantage of the low valuations in Taiwan's market. The TAIEX, Taiwan's stock exchange, rose 126.28 points to close at 8,939.19 points -- its highest since June 2000. Peter Kurz, head of Citigroup's Taiwan equity research, expects the TAIEX to rise as the government usually boosts the market prior to a major election.

Citigroup Global Markets is recommending that investors take advantage of the low valuations in Taiwan's market. The TAIEX, Taiwan's stock exchange, rose 126.28 points to close at 8,939.19 points -- its highest since June 2000. Peter Kurz, head of Citigroup's Taiwan equity research, expects the TAIEX to rise as the government usually boosts the market prior to a major election.

read source article
taiwan

China Attracting Taiwanese Firms

According to a report by China Credit Information Service, many Taiwanese firms are moving to China while 52 percent of Taiwan's top 1,000 companies are investing in China. In addition, revenues for those firms that have invested in China have experienced revenue growth of approximately 81.4 percent.

According to a report by China Credit Information Service, many Taiwanese firms are moving to China while 52 percent of Taiwan's top 1,000 companies are investing in China. In addition, revenues for those firms that have invested in China have experienced revenue growth of approximately 81.4 percent.

read source article
taiwan

Taiwan May Write Off Nicaragua's Debts

According to Taiwan's Ministry of Foreign Affairs, Taiwan is considering writing off some of Nicaragua's debts as a humanitarian act. However, there has been speculation that Nicaragua is demanding this be done in order to maintain ties with the island. Since Costa Rica cut ties with Taiwan on June 1, there has been talk that Nicaragua plans to switch its recognition to China as well.

According to Taiwan's Ministry of Foreign Affairs, Taiwan is considering writing off some of Nicaragua's debts as a humanitarian act. However, there has been speculation that Nicaragua is demanding this be done in order to maintain ties with the island. Since Costa Rica cut ties with Taiwan on June 1, there has been talk that Nicaragua plans to switch its recognition to China as well.

read source article
taiwan

Taiwan Market Attracting Foreign Investments

The TAIEX, Taiwan's stock exchange, hit 8,851.99 points on Thursday and is expected to reach 10,000 points by the end of 2007 or before the presidential election next March. The bull market has been fueled by foreign investments and is increasingly attracting international investors as economic forums are exposing many of Taiwan's companies.

The TAIEX, Taiwan's stock exchange, hit 8,851.99 points on Thursday and is expected to reach 10,000 points by the end of 2007 or before the presidential election next March. The bull market has been fueled by foreign investments and is increasingly attracting international investors as economic forums are exposing many of Taiwan's companies.

read source article
taiwan

Taiwan Chipmaker Shares Increase

Taiwanese computer chipmakers such as Nanya Technology and Powerchip Semiconductor Corp. posted higher share prices as chip prices are believed to have bottomed out. SinoPac Securities Corp. expects the shares of chipmakers to rise as it believes more money will flow into the sector.

Taiwanese computer chipmakers such as Nanya Technology and Powerchip Semiconductor Corp. posted higher share prices as chip prices are believed to have bottomed out. SinoPac Securities Corp. expects the shares of chipmakers to rise as it believes more money will flow into the sector.

read source article
taiwan

Taiwan's Adjusted Unemployment Rate Drops

Due to increased hiring in the financial services industry, Taiwan's seasonally adjusted jobless rate declined from 3.96 percent in April to 3.95 percent in May. Due to increased employment, wages and consumer spending may increase and help push Taiwan's economy. Without seasonally adjusting the data, Taiwan's jobless rate rose to 3.87 percent in May from 3.83 percent in April.

Due to increased hiring in the financial services industry, Taiwan's seasonally adjusted jobless rate declined from 3.96 percent in April to 3.95 percent in May. Due to increased employment, wages and consumer spending may increase and help push Taiwan's economy. Without seasonally adjusting the data, Taiwan's jobless rate rose to 3.87 percent in May from 3.83 percent in April.

read source article
taiwan

Taiwan's Interest Rate Increases

As expected, Taiwan's central bank increased its interest rate for a 12th consecutive quarter to 3.125 percent in order to control inflation and decrease outbound capital. It is trying to prevent further devaluation of the Taiwan Dollar as a cheaper dollar pushes up costs for producers. In addition, the bank anticipates higher inflation in the second half due to higher prices in global raw materials.

As expected, Taiwan's central bank increased its interest rate for a 12th consecutive quarter to 3.125 percent in order to control inflation and decrease outbound capital. It is trying to prevent further devaluation of the Taiwan Dollar as a cheaper dollar pushes up costs for producers. In addition, the bank anticipates higher inflation in the second half due to higher prices in global raw materials.

read source article
taiwan

Taiwan Seeks Russian Oil

Because the Middle East is constantly plagued with instability and conflicts, Taiwan is looking for other sources for oil. Taiwan, which imports 99.8 percent of its crude oil consumption, is considering importing from Russia. However, they must overcome higher transportation costs it takes 17 days to transport oil from the Middle East and about 30 days from Russia.

Because the Middle East is constantly plagued with instability and conflicts, Taiwan is looking for other sources for oil. Taiwan, which imports 99.8 percent of its crude oil consumption, is considering importing from Russia. However, they must overcome higher transportation costs it takes 17 days to transport oil from the Middle East and about 30 days from Russia.

read source article
taiwan

Taiwan to Increase Chip Spending

Taiwanese chip manufacturers are expected to increase spending by 16 percent in 2007 after increasing 36 percent between 2005 and 2006. At the same time, semiconductor industry spending on the whole is only expected to increase by 1 percent. Of the sixteen semiconductor companies that have billion-dollar-plus capital expenditure budgets, five of them are based in Taiwan. They include TSMC, Nanya, Powerchip, ProMOS and UMC.

Taiwanese chip manufacturers are expected to increase spending by 16 percent in 2007 after increasing 36 percent between 2005 and 2006. At the same time, semiconductor industry spending on the whole is only expected to increase by 1 percent. Of the sixteen semiconductor companies that have billion-dollar-plus capital expenditure budgets, five of them are based in Taiwan. They include TSMC, Nanya, Powerchip, ProMOS and UMC.

read source article
taiwan

AIDS Research Lab to Open in Hsinchu

The Taiwanese government in Hsinchu and Genentech Inc, a US biotechnology research company plan to open an AIDS research lab in the Hsinchu Biochemical Science Park. The joint-venture, to be called TaiMed, will be led by David Ho. Academia Sinica President Wong Chi-huey, who spearheaded the project, hopes that the research firm will bring overseas Taiwanese researchers back to the nation.

The Taiwanese government in Hsinchu and Genentech Inc, a US biotechnology research company plan to open an AIDS research lab in the Hsinchu Biochemical Science Park. The joint-venture, to be called TaiMed, will be led by David Ho. Academia Sinica President Wong Chi-huey, who spearheaded the project, hopes that the research firm will bring overseas Taiwanese researchers back to the nation.

read source article
taiwan

Taiwan Market Rises Amid Heavy Trading

On Wednesday, the TAIEX, the Weighted Price Index of the Taiwan Stock Exchange, rose 198.13 points to close at 8771.77 due to heavy trading. Volume hit its highest value in three years at NTD 199.51 billion (USD 6.05 billion). However, Stanley Chou of Mega International states that the TAIEX is overheated and should undergo a correction.

On Wednesday, the TAIEX, the Weighted Price Index of the Taiwan Stock Exchange, rose 198.13 points to close at 8771.77 due to heavy trading. Volume hit its highest value in three years at NTD 199.51 billion (USD 6.05 billion). However, Stanley Chou of Mega International states that the TAIEX is overheated and should undergo a correction.

read source article
taiwan

Insurance Chairman: Taxes Hurting Taiwan

Chu Ping-yu, the chairman of Taiwan Life Insurance Co., suggests that the Taiwan government should ax the inheritance and gift taxes in order to minimize capital outflow and to promote economic equality. Heavy taxes have caused investors to seek international investments that net higher returns. After Hong Kong ended the inheritance tax last year, its tax revenues increased by about 20 percent. Chu believes that tax revenues could also increase substantially if the inheritance and gift taxes were revoked in Taiwan.

Chu Ping-yu, the chairman of Taiwan Life Insurance Co., suggests that the Taiwan government should ax the inheritance and gift taxes in order to minimize capital outflow and to promote economic equality. Heavy taxes have caused investors to seek international investments that net higher returns. After Hong Kong ended the inheritance tax last year, its tax revenues increased by about 20 percent. Chu believes that tax revenues could also increase substantially if the inheritance and gift taxes were revoked in Taiwan.

read source article
taiwan

Guatemala and Taiwan to Discuss Trade

Oscar Berger, Guatemala's president, arrived in Taiwan Tuesday to show his support for the island and to promote trade. Berger has pledged that Guatemala would not betray Taiwan. Both presidents will discuss how Taiwan can aid in infrastructure development in Guatemala and sign an agricultural agreement. This meeting follows the breaking of relations between Taiwan and Costa Rica.

Oscar Berger, Guatemala's president, arrived in Taiwan Tuesday to show his support for the island and to promote trade. Berger has pledged that Guatemala would not betray Taiwan. Both presidents will discuss how Taiwan can aid in infrastructure development in Guatemala and sign an agricultural agreement. This meeting follows the breaking of relations between Taiwan and Costa Rica.

read source article
taiwan

Taiwan Approves Budget for 2007

After a long delay, Taiwan's Legislature approved a budget for the 2007 fiscal year. A budget deficit is expected with expenditures forecast to be NTD 1.629 trillion (USD 49.15 billion), while the revenue forecast is NTD 1.487 trillion. The budget includes the acquisition of 12 US-made P3 Orion submarine-hunting aircraft, 66 advanced F-16 fighter jets, as well as other defense items.

After a long delay, Taiwan's Legislature approved a budget for the 2007 fiscal year. A budget deficit is expected with expenditures forecast to be NTD 1.629 trillion (USD 49.15 billion), while the revenue forecast is NTD 1.487 trillion. The budget includes the acquisition of 12 US-made P3 Orion submarine-hunting aircraft, 66 advanced F-16 fighter jets, as well as other defense items.

read source article
taiwan

Taiwan's Interest Rates Expected to Increase

Analysts expect Taiwan's central bank to increase interest rates by 0.125 percentage points in order to limit capital outflow and to revalue its currency. As of Friday, Taiwan's dollar closed at NTD 33.142 against the US Dollar, and would have gone above NTD 34 if not for the central bank's intervention with increasing interest rates, according to the president of Polaris Research Institute. Since October 2004, the interest rates have risen for 11 consecutive quarters.

Analysts expect Taiwan's central bank to increase interest rates by 0.125 percentage points in order to limit capital outflow and to revalue its currency. As of Friday, Taiwan's dollar closed at NTD 33.142 against the US Dollar, and would have gone above NTD 34 if not for the central bank's intervention with increasing interest rates, according to the president of Polaris Research Institute. Since October 2004, the interest rates have risen for 11 consecutive quarters.

read source article
taiwan

Taiwan's TAIEX Hits Six-Year High

The TAIEX, Taiwan's stock index, rose 104.33 points to hit 8,450.72, its highest value since July 17, 2000. As Taiwan's second-largest export market, the robust US economy has supported Taiwan's economic success as it provides strong demand for exports. For every eight stocks that decreased in value, nine stocks increased.

The TAIEX, Taiwan's stock index, rose 104.33 points to hit 8,450.72, its highest value since July 17, 2000. As Taiwan's second-largest export market, the robust US economy has supported Taiwan's economic success as it provides strong demand for exports. For every eight stocks that decreased in value, nine stocks increased.

read source article
taiwan

Taiwan's Overseas Investment Cap Increased

The Taiwan legislature approved an amendment to the Insurance Law to increase the limit that domestic insurance companies could invest overseas. By raising the cap limit from 35 percent to 45 percent of working capital, insurance companies would increase overseas investments by approximately NTD 700 billion (USD 21.16 billion), according to the Financial Supervisory Commission.

The Taiwan legislature approved an amendment to the Insurance Law to increase the limit that domestic insurance companies could invest overseas. By raising the cap limit from 35 percent to 45 percent of working capital, insurance companies would increase overseas investments by approximately NTD 700 billion (USD 21.16 billion), according to the Financial Supervisory Commission.

read source article
taiwan

Taiwan's Property Market Likely to Fall

According to a Council for Economic Planning and Development report, Taiwan's property market is likely to fall after a decline in the homebuyers' confidence index. Supporting this claim, Taipei City's ratio of average house prices to average annual salaries declined from 8.8 to 8.1. The ratio represents the number of years that the average person must save every dollar in order to afford a house. A drop in the ratio suggests that housing prices may be inflated.

According to a Council for Economic Planning and Development report, Taiwan's property market is likely to fall after a decline in the homebuyers' confidence index. Supporting this claim, Taipei City's ratio of average house prices to average annual salaries declined from 8.8 to 8.1. The ratio represents the number of years that the average person must save every dollar in order to afford a house. A drop in the ratio suggests that housing prices may be inflated.

read source article
taiwan

Taiwan's Opposition Leader Seeks Stronger Ties with India

Ma Ying-Jeou, the Taiwanese opposition leader, recently visited India in hopes of strengthening economic ties. Trade between India and Taiwan is approximately at five billion US dollars and is currently at a nascent stage. The relationship between the two is garnering attention from mainland China as it does not want India to formally recognize the island.

Ma Ying-Jeou, the Taiwanese opposition leader, recently visited India in hopes of strengthening economic ties. Trade between India and Taiwan is approximately at five billion US dollars and is currently at a nascent stage. The relationship between the two is garnering attention from mainland China as it does not want India to formally recognize the island.

read source article
taiwan

Taiwan's Domestic Firms Concerned About Lower Profit Margins

In a survey conducted by 104 Job Bank and Business Management Consultants Association, ROC, around 80 percent of businesses worry that their margins will drop to zero by 2015. Margins in 1999 for notebook computer manufacturers were 18 percent, but have since dropped to 5 percent today. To sustain profits, Taiwanese firms suggest that technological developments, cross-strait business opportunities, and internationalization should be undertaken.

In a survey conducted by 104 Job Bank and Business Management Consultants Association, ROC, around 80 percent of businesses worry that their margins will drop to zero by 2015. Margins in 1999 for notebook computer manufacturers were 18 percent, but have since dropped to 5 percent today. To sustain profits, Taiwanese firms suggest that technological developments, cross-strait business opportunities, and internationalization should be undertaken.

read source article
taiwan

Taiwan's China Airlines Anticipating Cross-Strait Flights

China Airlines Corp., Taiwan's largest carrier, bought an 8 percent stake in Taikoo (Xiamen) Landing Gear Services Co Ltd. Similar to Taiwan's EVA Airways, China Airlines is expanding its reach to the Chinese mainland in anticipation that cross-strait flights may come to fruition.

China Airlines Corp., Taiwan's largest carrier, bought an 8 percent stake in Taikoo (Xiamen) Landing Gear Services Co Ltd. Similar to Taiwan's EVA Airways, China Airlines is expanding its reach to the Chinese mainland in anticipation that cross-strait flights may come to fruition.

read source article
taiwan

Taiwan Bank Merger to Be Discussed

Chang Hwa Commercial bank of Taiwan and Taishin Financial Holding will resume talks regarding a merger to become Taiwan's second-largest financial group after Cathay Financial Holding. These talks were expedited by the resignation of Chang Hwa's chairman, Chang Po-shin. Taishin currently owns a 25 percent stake in Chang Hwa, which is scheduled to be reduced after it agreed to sell a 2.5 percent stake to the Dutch insurer Aegon.

Chang Hwa Commercial bank of Taiwan and Taishin Financial Holding will resume talks regarding a merger to become Taiwan's second-largest financial group after Cathay Financial Holding. These talks were expedited by the resignation of Chang Hwa's chairman, Chang Po-shin. Taishin currently owns a 25 percent stake in Chang Hwa, which is scheduled to be reduced after it agreed to sell a 2.5 percent stake to the Dutch insurer Aegon.

read source article
taiwan

Taiwan's Nationalist Party Seeks Renewed Indian Relations

Taiwan's presidential candidate Ma Ying-jeou visited New Dehli today to "seek a new beginning with an old friend". The first visit in 60 years for a Nationalist Party member, Ma's visit brings calls for increased trade and investment between Taiwan and India's growing economy. The trip was labeled a private visit by New Dehli as sensitivity concerning India's diplomatic relations with mainland China complicates ties with Taiwan.

Taiwan's presidential candidate Ma Ying-jeou visited New Dehli today to "seek a new beginning with an old friend". The first visit in 60 years for a Nationalist Party member, Ma's visit brings calls for increased trade and investment between Taiwan and India's growing economy. The trip was labeled a private visit by New Dehli as sensitivity concerning India's diplomatic relations with mainland China complicates ties with Taiwan.

read source article
taiwan

Bullish Stock Market Predicted for Taiwan

According to analysts, Taiwan's stock market (TAIEX), which closed at 8,338.88 points yesterday, is expected to hit 9,000 points by the end of 2007. This forecast is supported by continuous net foreign investment inflow, a possible backflow of overseas Taiwanese capital, and the cheap valuations of domestic stock. In addition, talks of mergers and acquisitions and investments by private equity firms would also have an increasing effect on stock prices.

According to analysts, Taiwan's stock market (TAIEX), which closed at 8,338.88 points yesterday, is expected to hit 9,000 points by the end of 2007. This forecast is supported by continuous net foreign investment inflow, a possible backflow of overseas Taiwanese capital, and the cheap valuations of domestic stock. In addition, talks of mergers and acquisitions and investments by private equity firms would also have an increasing effect on stock prices.

read source article
taiwan

Taiwan to Use More Renewable Energy

In an effort to cut greenhouse gas emissions, Taiwan seeks to promote the use of ethanol fuel in addition to other types of renewable energy that include wind, solar, geothermal, and bioenergy. The island is pushing for all government vehicles in Taipei to use E3, ethanol fuel, by the beginning of September.

In an effort to cut greenhouse gas emissions, Taiwan seeks to promote the use of ethanol fuel in addition to other types of renewable energy that include wind, solar, geothermal, and bioenergy. The island is pushing for all government vehicles in Taipei to use E3, ethanol fuel, by the beginning of September.

read source article
taiwan

Donut Chains Expanding Into Asia

As Western foods are becoming more popular in Asia, donut chains are establishing their presence in China, Taiwan, South Korea and Japan among other Asian nations. According to Krispy Kreme's spokesman, the donut market is said to be growing by 20 to 30 percent each year. This increase in donut consumption not only represents an embracing of Western cuisine, but also indicates a higher willingness to pay for "luxury eats."

As Western foods are becoming more popular in Asia, donut chains are establishing their presence in China, Taiwan, South Korea and Japan among other Asian nations. According to Krispy Kreme's spokesman, the donut market is said to be growing by 20 to 30 percent each year. This increase in donut consumption not only represents an embracing of Western cuisine, but also indicates a higher willingness to pay for "luxury eats."

read source article
taiwan

Taiwan to Enter Sports Gambling

In an effort to stimulate the economy, Taiwan will enter the sports gambling arena next year. It intends to introduce three kinds of sports gambling, including horse and car racing, though legal revisions would be required before horse racing can be launched.

In an effort to stimulate the economy, Taiwan will enter the sports gambling arena next year. It intends to introduce three kinds of sports gambling, including horse and car racing, though legal revisions would be required before horse racing can be launched.

read source article
taiwan

Digital Frames: New Trend for Taiwanese Manufacturers

According to Taiwanese contract makers, digital frames are destined to become more popular and affordable. This potential burgeoning market is appealing for many Taiwanese manufacturers of such frames. The Taipei-based Topology Research Institute expects global shipments of digital photo frames to triple to 9.5 million units this year from 3.2 million units in 2006.

According to Taiwanese contract makers, digital frames are destined to become more popular and affordable. This potential burgeoning market is appealing for many Taiwanese manufacturers of such frames. The Taipei-based Topology Research Institute expects global shipments of digital photo frames to triple to 9.5 million units this year from 3.2 million units in 2006.

read source article
taiwan

ABN Amro Takes Over 32 Branches in Taiwan

After winning a government auction, ABN Amro Holding NV will assume control of 32 branches belonging to Taiwan's Taitung Business Bank. ABN Amro will receive NTD 6.90 billion (USD 208.9 million) and will take on around NTD 40 billion in debt. Taitung Business Bank had trouble raising funds and had a negative net worth of NTD 1.1 billion as of December 15, 2006, when Taiwan's Financial Supervisory Commission and Central Deposit Insurance took control.

After winning a government auction, ABN Amro Holding NV will assume control of 32 branches belonging to Taiwan's Taitung Business Bank. ABN Amro will receive NTD 6.90 billion (USD 208.9 million) and will take on around NTD 40 billion in debt. Taitung Business Bank had trouble raising funds and had a negative net worth of NTD 1.1 billion as of December 15, 2006, when Taiwan's Financial Supervisory Commission and Central Deposit Insurance took control.

read source article
taiwan

Taiwan Attracting Large Private Equity Firms

Kohlberg Kravis Roberts & Co. (KKR), one of the world's largest private equity firms, recently completed its first investment in Taiwan. After purchasing USD 230 million of Taiwan's Yageo Corporation's convertible bonds, KKR is looking to make more investments in China and Taiwan's technology and banking sectors.

Kohlberg Kravis Roberts & Co. (KKR), one of the world's largest private equity firms, recently completed its first investment in Taiwan. After purchasing USD 230 million of Taiwan's Yageo Corporation's convertible bonds, KKR is looking to make more investments in China and Taiwan's technology and banking sectors.

read source article
taiwan

Taiwan and Costa Rica Officially Cut Ties

Taiwan ended diplomatic relations with Costa Rica after the Central American nation decided to recognize China over Taiwan. China was able to secure Costa Rica's relations with a pledged grant of USD 130 million and bonds worth USD 300 million, according to Taiwan's President Chen Shui-bian. In response to the situation, Taiwan aims to strengthen relations with its remaining diplomatic allies in order to prevent a "domino effect."

Taiwan ended diplomatic relations with Costa Rica after the Central American nation decided to recognize China over Taiwan. China was able to secure Costa Rica's relations with a pledged grant of USD 130 million and bonds worth USD 300 million, according to Taiwan's President Chen Shui-bian. In response to the situation, Taiwan aims to strengthen relations with its remaining diplomatic allies in order to prevent a "domino effect."

read source article
taiwan

Taiwan's CPI Decreases

After six consecutive months of increases, the consumer price index (CPI) decreased by 0.03 percent year-on-year last month. Fruit and vegetable prices were lower than they were during the same period last year. However, the decrease in CPI was offset by the increased prices of fuel and Chinese medicine. Although the changes in the CPI have been modest, the whole price index (WPI) has experienced relatively larger increases.

After six consecutive months of increases, the consumer price index (CPI) decreased by 0.03 percent year-on-year last month. Fruit and vegetable prices were lower than they were during the same period last year. However, the decrease in CPI was offset by the increased prices of fuel and Chinese medicine. Although the changes in the CPI have been modest, the whole price index (WPI) has experienced relatively larger increases.

read source article
taiwan

Morgan Stanley: Increase in Taiwan M&A Likely in 2007

According to Morgan Stanley, merger and acquisition activity in Taiwan is likely to increase as domestic firms seek to publicly list themselves in Hong Kong and China's markets. In addition, Taiwanese banks such as Ta Chong Bank and EnTie Bank are looking to be bought out. These banks have had difficulty raising capital as their shares trade at approximately 1.2 times forecast book value, whereas banks in Hong Kong have shares that trade at roughly twice that amount.

According to Morgan Stanley, merger and acquisition activity in Taiwan is likely to increase as domestic firms seek to publicly list themselves in Hong Kong and China's markets. In addition, Taiwanese banks such as Ta Chong Bank and EnTie Bank are looking to be bought out. These banks have had difficulty raising capital as their shares trade at approximately 1.2 times forecast book value, whereas banks in Hong Kong have shares that trade at roughly twice that amount.

read source article
taiwan

Taiwan and Costa Rica Consider Cutting Ties

Taiwan and Costa Rica may cut ties after a more than 60-year relationship, as the latter country is developing stronger relations with China. In addition, the relationship was tested when Costa Rica voted against Taiwan's bid to join the World Health Organization last month. Currently, only 25 countries publicly recognize Taiwan as a sovereign nation.

Taiwan and Costa Rica may cut ties after a more than 60-year relationship, as the latter country is developing stronger relations with China. In addition, the relationship was tested when Costa Rica voted against Taiwan's bid to join the World Health Organization last month. Currently, only 25 countries publicly recognize Taiwan as a sovereign nation.

read source article
taiwan

Taiwan Government Plans to Increase Birth Rate

Contrary to China and its birth policy, Taiwan seeks to increase its birth rate by providing families a child-raising subsidy as well as other benefits. Over a period of 10 years, the government aims to increase the fertility rate from 1.2 children per woman over her lifetime to 1.6 in an effort to reach 300,000 newborns per year.

Contrary to China and its birth policy, Taiwan seeks to increase its birth rate by providing families a child-raising subsidy as well as other benefits. Over a period of 10 years, the government aims to increase the fertility rate from 1.2 children per woman over her lifetime to 1.6 in an effort to reach 300,000 newborns per year.

read source article
taiwan

Taiwan’s HTC Touch to Rival Apple’s iPhone

High Tech Computer (HTC) has developed the Touch, a touch screen mobile device that is available in the UK and aims to rival Apple's iPhone, which is to be on the market later this month. Although the Touch and the iPhone offer many similar functions, the former focuses on email and other more business-oriented uses.

High Tech Computer (HTC) has developed the Touch, a touch screen mobile device that is available in the UK and aims to rival Apple's iPhone, which is to be on the market later this month. Although the Touch and the iPhone offer many similar functions, the former focuses on email and other more business-oriented uses.

read source article
taiwan

Favorable Outlook for Taiwanese Electronics Companies

With the arrival of Microsoft's new Vista operating system and other next-generation tech products, demand for computers and electronics should increase in the coming year. According to the Taiwan External Trade Development Council (TAITRA), Taiwanese firms may experience an increase of 14 percent in electronics orders. This development comes during the annual Taipei International Information Technology Show (Computex Taipei 2007), which is the world's second-largest computer expo.

With the arrival of Microsoft's new Vista operating system and other next-generation tech products, demand for computers and electronics should increase in the coming year. According to the Taiwan External Trade Development Council (TAITRA), Taiwanese firms may experience an increase of 14 percent in electronics orders. This development comes during the annual Taipei International Information Technology Show (Computex Taipei 2007), which is the world's second-largest computer expo.

read source article
taiwan

TAIEX Hits Six-Year High

The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) hit a six-year high yesterday, increasing by 44.89 points to hit 8,294.79. The bullish Taiwanese market has been supported by a strong electronics sector and the robust US economy. With higher than expected expansion of employment and manufacturing, the US economy, Taiwan's second-largest overseas market, will continue to provide strong demand for Taiwanese goods.

The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) hit a six-year high yesterday, increasing by 44.89 points to hit 8,294.79. The bullish Taiwanese market has been supported by a strong electronics sector and the robust US economy. With higher than expected expansion of employment and manufacturing, the US economy, Taiwan's second-largest overseas market, will continue to provide strong demand for Taiwanese goods.

read source article
taiwan

Taiwan and Vietnam Encourage High-Tech Exchange

Taiwan and Vietnam agreed to strengthen their relationship by encouraging high-tech exchange. As a result, Taiwan will bolster its status as Vietnam's largest investor by infusing more capital to support Vietnam's economic growth, which has averaged a 7-8 percent growth rate over the past several years. By spreading and diversifying its investment to a locale other than China, Taiwan will benefit from a reduction in investment risk.

Taiwan and Vietnam agreed to strengthen their relationship by encouraging high-tech exchange. As a result, Taiwan will bolster its status as Vietnam's largest investor by infusing more capital to support Vietnam's economic growth, which has averaged a 7-8 percent growth rate over the past several years. By spreading and diversifying its investment to a locale other than China, Taiwan will benefit from a reduction in investment risk.

read source article
taiwan

Taiwan's Opposition Leader Seeks Stronger Economic Ties with China

Contrary to Chen Shui-bian and the Democratic Progressive Party (DPP), Ma Ying-jeou, the leader of Taiwan's primary opposition Kuomintang, aims to end hostility and forge a peace agreement with Beijing. In addition, Ma desires stronger economic ties with China by opening the "three direct links" - transportation, commercial services and postal services. The strengthening of these economic ties will increase China's current status as Taiwan's largest trading partner and may lead to increased capital allocation to the mainland.

Contrary to Chen Shui-bian and the Democratic Progressive Party (DPP), Ma Ying-jeou, the leader of Taiwan's primary opposition Kuomintang, aims to end hostility and forge a peace agreement with Beijing. In addition, Ma desires stronger economic ties with China by opening the "three direct links" - transportation, commercial services and postal services. The strengthening of these economic ties will increase China's current status as Taiwan's largest trading partner and may lead to increased capital allocation to the mainland.

read source article
taiwan

China's Booming Market Attracts Taiwanese IPOs

In an effort to raise capital, Taiwanese enterprises are becoming increasingly attracted to launching IPOs in mainland China where the economic boom has led to high share prices. In addition, Taipei's heavy restrictions on cross-strait investment and difficulties in financing domestic businesses have also pushed Taiwanese firms to publicly list themselves in other foreign markets, such as those of Hong Kong and Singapore.

In an effort to raise capital, Taiwanese enterprises are becoming increasingly attracted to launching IPOs in mainland China where the economic boom has led to high share prices. In addition, Taipei's heavy restrictions on cross-strait investment and difficulties in financing domestic businesses have also pushed Taiwanese firms to publicly list themselves in other foreign markets, such as those of Hong Kong and Singapore.

read source article
taiwan

APEC to Study State-Owned Oil Firms

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

read source article
taiwan

Asian Stocks Fall on US Rate Speculation

Speculation that interest rates will be adjusted downward in the US, Asia's largest export market, has all but dissipated, especially with an unexpected surge in US home sales. The result was the largest drop in Asian stocks in the past five weeks, with only the benchmark indexes of China, India, Pakistan, and Sri Lanka advancing in the region. Hong Kong's Hang Seng Index fell 1.3 percent, while Japan's Nikkei 225 Stock Average took its largest hit of the month at 1.2 percent.

Speculation that interest rates will be adjusted downward in the US, Asia's largest export market, has all but dissipated, especially with an unexpected surge in US home sales. The result was the largest drop in Asian stocks in the past five weeks, with only the benchmark indexes of China, India, Pakistan, and Sri Lanka advancing in the region. Hong Kong's Hang Seng Index fell 1.3 percent, while Japan's Nikkei 225 Stock Average took its largest hit of the month at 1.2 percent.

read source article
taiwan

Chinese Demand Sees Taiwanese Growth Accelerate

First quarter numbers showed that gross domestic product growth in Taiwan expanded 4.15 percent from a year earlier, building on the 4.04 percent rate from the fourth quarter of 2006. Soaring Chinese demand for electronics exports such as personal computers and liquid-crystal displays have helped offset a drop in US demand, which may prompt Taiwan's central bank to raise its benchmark interest rate, the second-lowest in Asia.

First quarter numbers showed that gross domestic product growth in Taiwan expanded 4.15 percent from a year earlier, building on the 4.04 percent rate from the fourth quarter of 2006. Soaring Chinese demand for electronics exports such as personal computers and liquid-crystal displays have helped offset a drop in US demand, which may prompt Taiwan's central bank to raise its benchmark interest rate, the second-lowest in Asia.

read source article
taiwan

Taiwan's Major Oil Company Raises Petrol and Diesel Prices

Taiwan's State-run petroleum, natural gas and gasoline company, Chinese Petroleum Corp.(CPC), has increased its wholesale gasoline and diesel prices respectively by NT$0.8 per liter and NT$0.9 per liter. The reason for these prices adjustments is based on the surging price of West Texas Intermediate crude oil trade on the New York Mercantile Exchange. Its rival Formosa Petrochemical Corp. is also estimated to increase its prices to match those of CPC.

Taiwan's State-run petroleum, natural gas and gasoline company, Chinese Petroleum Corp.(CPC), has increased its wholesale gasoline and diesel prices respectively by NT$0.8 per liter and NT$0.9 per liter. The reason for these prices adjustments is based on the surging price of West Texas Intermediate crude oil trade on the New York Mercantile Exchange. Its rival Formosa Petrochemical Corp. is also estimated to increase its prices to match those of CPC.

read source article
taiwan

Hong Kong Dollar Reaches Near 22-Year Low

Under selling pressure from interest rate arbitrage and anticipation of the impending US-China talks, the Hong Kong dollar has dropped to 7.823 against the US dollar. Expectations are that, in the short term, rates will continue to fall as arbitrage trading continues amidst expected improving market liquidity, and while commercial interest in the US dollar continues.

Under selling pressure from interest rate arbitrage and anticipation of the impending US-China talks, the Hong Kong dollar has dropped to 7.823 against the US dollar. Expectations are that, in the short term, rates will continue to fall as arbitrage trading continues amidst expected improving market liquidity, and while commercial interest in the US dollar continues.

read source article
taiwan

US Legislative Hurdles Hinder FTA Plans with Taiwan

Taiwan, hoping to alleviate its high degree of international isolation, hopes that its June talks with the US will provide a "building block" for a bilateral investment treaty, which could potentially lead to a future free-trade agreement. However, with the US Congress set to regain its ability to amend trade deals next month, a free-trade agreement with Taiwan has little chance of passing through US legislative hurdles. Free-trade negotiations with major economic powers continue to be difficult for Taiwan as long as China refuses to recognize the island's sovereign status.

Taiwan, hoping to alleviate its high degree of international isolation, hopes that its June talks with the US will provide a "building block" for a bilateral investment treaty, which could potentially lead to a future free-trade agreement. However, with the US Congress set to regain its ability to amend trade deals next month, a free-trade agreement with Taiwan has little chance of passing through US legislative hurdles. Free-trade negotiations with major economic powers continue to be difficult for Taiwan as long as China refuses to recognize the island's sovereign status.

read source article
taiwan

Light Trading as Taiwanese Investors Mull Chinese Relations

Shares on the Taiwan Stock Exchange gained slightly on light trading, as Taiwanese investors await President Chen Shui-bian's announcement on the state of relations with rival China's government. Analysts expect a positive policy statement will stimulate the market, as has been the case following five of Chen's six major policy addresses during his seven-year presidency.

Shares on the Taiwan Stock Exchange gained slightly on light trading, as Taiwanese investors await President Chen Shui-bian's announcement on the state of relations with rival China's government. Analysts expect a positive policy statement will stimulate the market, as has been the case following five of Chen's six major policy addresses during his seven-year presidency.

read source article
taiwan

Taiwan Announces Surplus

After seven years of having a deficit, Taiwan's Finance Minister has announced a surplus of NT$15.5 billion (US$470 million) for last year, dangling a balanced budget for this year. The current development raises hope for improved credit ratings for Taiwan in the near future.

After seven years of having a deficit, Taiwan's Finance Minister has announced a surplus of NT$15.5 billion (US$470 million) for last year, dangling a balanced budget for this year. The current development raises hope for improved credit ratings for Taiwan in the near future.

read source article
taiwan

Taiwan's Local Banks Fight it Out With Global Giants

Local Taiwanese banks are feeling the heat from global giants like Citigroup and Standard Chartered because of their exisitence in China. Even though Taiwanese companies and indiviuals have poured in more than $150 billion into China, Taiwanese banks are not allowed to operate on the mainland because of the legacy of a civil war. On the other hand global players like Citigroup and Standard Chatered can provide their clients with service throughout China, Taiwan and Hong Kong. These are testing times for the local Taiwanese banking industry that delivered a return in equity of negative 0.43 percent in 2006.

Local Taiwanese banks are feeling the heat from global giants like Citigroup and Standard Chartered because of their exisitence in China. Even though Taiwanese companies and indiviuals have poured in more than $150 billion into China, Taiwanese banks are not allowed to operate on the mainland because of the legacy of a civil war. On the other hand global players like Citigroup and Standard Chatered can provide their clients with service throughout China, Taiwan and Hong Kong. These are testing times for the local Taiwanese banking industry that delivered a return in equity of negative 0.43 percent in 2006.

read source article
taiwan

Mainland China Surpasses Japan and Taiwan in Competitive World Rankings

For the first time since the Swiss-based International Institute for Management Development (IMD) has launched its annual list in 1989, China has moved ahead of Japan and Taiwan in this year's world competitiveness rankings. Mainland China has moved from 15th place from last year's 18th place, while Japan and Taiwan fell behind. Competitiveness of the 55 economies is measured in four areas: economic performance, government efficiency, business efficiency and infrastructure.

For the first time since the Swiss-based International Institute for Management Development (IMD) has launched its annual list in 1989, China has moved ahead of Japan and Taiwan in this year's world competitiveness rankings. Mainland China has moved from 15th place from last year's 18th place, while Japan and Taiwan fell behind. Competitiveness of the 55 economies is measured in four areas: economic performance, government efficiency, business efficiency and infrastructure.

read source article
taiwan

Taiwan Feels Drop in U.S. Demand

Signs of weakened demand from the U.S. have rocked Taiwan in recent months as economists watch overseas sales drop from their 2006 growth rate of 12.9% to the 6.3% rate projected for this year. This follows the IMF and World Bank prediction of a 2007 "cooling" trend for Taiwanese economic expansion. The decline has mostly affected the producers of electronics, Taiwan's main exports to both the U.S. and China. Analysts fear that even China's continued demand won't be enough to make up for the dwindling U.S. market support.

Signs of weakened demand from the U.S. have rocked Taiwan in recent months as economists watch overseas sales drop from their 2006 growth rate of 12.9% to the 6.3% rate projected for this year. This follows the IMF and World Bank prediction of a 2007 "cooling" trend for Taiwanese economic expansion. The decline has mostly affected the producers of electronics, Taiwan's main exports to both the U.S. and China. Analysts fear that even China's continued demand won't be enough to make up for the dwindling U.S. market support.

read source article
taiwan

Philippines to Strengthen Economic Relations with Taiwan

The Philippine government reports further progress on the Kaohsiung-Subic Bay-Clark economic corridor, linking three economic and export process zones and allowing easier product and manpower movement. Due to the long and harmonious trade relation between Philippines and Taiwan, the establishment of the corridor could not only resolve some of the issues that have concerned Taiwanese companies, but also create a win-win situation for both countries involved.

The Philippine government reports further progress on the Kaohsiung-Subic Bay-Clark economic corridor, linking three economic and export process zones and allowing easier product and manpower movement. Due to the long and harmonious trade relation between Philippines and Taiwan, the establishment of the corridor could not only resolve some of the issues that have concerned Taiwanese companies, but also create a win-win situation for both countries involved.

read source article
taiwan

Investors Become Conservative to Taiwan's Stocks

According to a survey published by the University of Shih Hsin and Business Today, Taiwan's stock investor sentiment looses confidence and becomes conservative because of rising consumer prices and political infighting for next year's presidential election.

According to a survey published by the University of Shih Hsin and Business Today, Taiwan's stock investor sentiment looses confidence and becomes conservative because of rising consumer prices and political infighting for next year's presidential election.

read source article
taiwan

Germany's Bosch Group Plans to Outsource in Taiwan

Germany's Bosch Group is scheduled to arrive in Taiwan on May 14th to discuss their increased purchases of precision electronic components. Additionally, Bosch will seek long-term business partners within Taiwan to boost their multinational company and Taiwan's outsourcing.

Germany's Bosch Group is scheduled to arrive in Taiwan on May 14th to discuss their increased purchases of precision electronic components. Additionally, Bosch will seek long-term business partners within Taiwan to boost their multinational company and Taiwan's outsourcing.

read source article
taiwan

Taiwanese Firms Diminishing in Capital Markets

Taiwan's influence on global capital markets is diminishing as fewer Taiwanese companies have been seen on the list of top 1,000 Greater China enterprises. Compared to last year, a reduction of 40 per cent of Taiwanese companies was seen on the list. Moreover, Chinese firms are beginning to increase, indicating that new companies have been listed within China and share prices of older companies have gone up.

Taiwan's influence on global capital markets is diminishing as fewer Taiwanese companies have been seen on the list of top 1,000 Greater China enterprises. Compared to last year, a reduction of 40 per cent of Taiwanese companies was seen on the list. Moreover, Chinese firms are beginning to increase, indicating that new companies have been listed within China and share prices of older companies have gone up.

read source article
taiwan

Taiwan Gets Good Marks in Investment Markets

Business Environment Risk Intelligence (BERI) has rated Taiwan as the world's sixth lowest risk country for conducting business with 72 points for profit opportunity. Because of a rising trade surplus, Taiwan's remittance and repatriation factor improved by 1.85 points.

Business Environment Risk Intelligence (BERI) has rated Taiwan as the world's sixth lowest risk country for conducting business with 72 points for profit opportunity. Because of a rising trade surplus, Taiwan's remittance and repatriation factor improved by 1.85 points.

read source article
taiwan

Taipower to Sell First Secured Bonds in Two Decades

Taiwan Power Co., the island's biggest electricity producer, is selling the company's first secured bonds in two decades after posting a loss last year. The company plans to sell NT$5 billion of five-year debt guaranteed by Taipei Fubon Bank, and interested buyers should submit bids by 12:30 p.m. April 24, Sam Lou, section chief at the utility's finance department.

Taiwan Power Co., the island's biggest electricity producer, is selling the company's first secured bonds in two decades after posting a loss last year. The company plans to sell NT$5 billion of five-year debt guaranteed by Taipei Fubon Bank, and interested buyers should submit bids by 12:30 p.m. April 24, Sam Lou, section chief at the utility's finance department.

read source article
taiwan

Asian Stocks Decline In Response To U.S. Federal Reserve Board Minutes Indicating Interest Rate Hike

Ending a 6-week high, Asian stocks fell Thursday based on comments by the U.S. Federal Reserve Board that it may raise interest rates to curb inflation. The comments were contained in the minutes of a Federal Reserve Board meeting. The countries most affected were Japan, Australia, and Taiwan

Ending a 6-week high, Asian stocks fell Thursday based on comments by the U.S. Federal Reserve Board that it may raise interest rates to curb inflation. The comments were contained in the minutes of a Federal Reserve Board meeting. The countries most affected were Japan, Australia, and Taiwan

read source article
taiwan

Taiwan Falls Behind South Korea in Economic Performance

In recent years, South Korea has begun to put some gap between itself and Taiwan when looking at per-capita GNP. This can be attributed to the fact that there has been a sharp appreciation of the Korean won against the U.S. dollar. Other factors aiding South Korea include effective economic policies, growth in exports, and also a thriving international film and TV industry. The two countries continue to work out effective measures to improve conditions not only for themselves, but for the well-being of the global market.

In recent years, South Korea has begun to put some gap between itself and Taiwan when looking at per-capita GNP. This can be attributed to the fact that there has been a sharp appreciation of the Korean won against the U.S. dollar. Other factors aiding South Korea include effective economic policies, growth in exports, and also a thriving international film and TV industry. The two countries continue to work out effective measures to improve conditions not only for themselves, but for the well-being of the global market.

read source article
taiwan

Asian Markets Fall Again After Rebound

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

read source article
taiwan

The Asian Stock Markets: Boom or Bust?

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

read source article
taiwan

Shanghai-Taiwan Trade Hits All-Time High

Trade between the Chinese city of Shanghai and Taiwan hit $25.8 billion in 2006, an all-time high and a 20% increase over the previous year. Shanghai is a popular point of investment for Taiwanese businesses, with $16.4 billion in investment in the city coming from Taiwan last year.

Trade between the Chinese city of Shanghai and Taiwan hit $25.8 billion in 2006, an all-time high and a 20% increase over the previous year. Shanghai is a popular point of investment for Taiwanese businesses, with $16.4 billion in investment in the city coming from Taiwan last year.

read source article
taiwan

Housing Surplus in Taiwan

Taiwan currently has a surplus of over 39,000 homes due to speculation on the growth of some cities, leading experts to predict a decline in housing prices. Builders are anticipating higher demand in cities like Taichung where a high speed rail service was recently announced. Though the country has a housing surplus, several cities including Taipei have housing shortages in the tens of thousands.

Taiwan currently has a surplus of over 39,000 homes due to speculation on the growth of some cities, leading experts to predict a decline in housing prices. Builders are anticipating higher demand in cities like Taichung where a high speed rail service was recently announced. Though the country has a housing surplus, several cities including Taipei have housing shortages in the tens of thousands.

read source article
taiwan

Vietnam Following Path of Taiwan

Vietnam has decided to follow the path of Taiwan in the 1980s, by pouring resources into the information technology sector. With the government's support, high interest among students and young professionals, and a vast amount of non-natives from around the world, Vietnam hopes to set a foundation where IT companies can grow and develop. Having some established connections with other Asian countries provides Vietnam with an advantage Taiwan never had, giving Vietnam high hopes for being the "next big thing" in the world of IT.

Vietnam has decided to follow the path of Taiwan in the 1980s, by pouring resources into the information technology sector. With the government's support, high interest among students and young professionals, and a vast amount of non-natives from around the world, Vietnam hopes to set a foundation where IT companies can grow and develop. Having some established connections with other Asian countries provides Vietnam with an advantage Taiwan never had, giving Vietnam high hopes for being the "next big thing" in the world of IT.

read source article
taiwan

Emerging Asia’s Growth and Integration - How Autonomous are Business Cycles?

Against the background of the rapid integration of emerging Asia into the global economy, this paper investigates the role of domestic and external factors in driving individual emerging economies in Asia. We estimate VAR models for ten countries over the period 1979Q1-2003Q4, controlling for external factors, and use sign restrictions to identify structural domestic shocks. Variance decompositions indicate that Asian emerging economies are to a large part driven by external developments, and even more so employing a more recent sample. We analyse to what extent structural domestic shocks exhibit a regional dimension by comparing shocks across countries using correlation and principal component analysis. The extent of regional co-movement between structural shocks is relatively limited. While the principal components analysis indicates a moderate increase in co-movement over time, the correlation analysis finds a decline. This may reflect a broadening of regional integration at the expense of bilateral economic ties.

Against the background of the rapid integration of emerging Asia into the global economy, this paper investigates the role of domestic and external factors in driving individual emerging economies in Asia. We estimate VAR models for ten countries over the period 1979Q1-2003Q4, controlling for external factors, and use sign restrictions to identify structural domestic shocks. Variance decompositions indicate that Asian emerging economies are to a large part driven by external developments, and even more so employing a more recent sample. We analyse to what extent structural domestic shocks exhibit a regional dimension by comparing shocks across countries using correlation and principal component analysis. The extent of regional co-movement between structural shocks is relatively limited. While the principal components analysis indicates a moderate increase in co-movement over time, the correlation analysis finds a decline. This may reflect a broadening of regional integration at the expense of bilateral economic ties.

read source article
taiwan

21.4% of Enterprises to Increase Investment in First Half of 2007

According to a survey done by the Economic Daily News, many Taiwanese firms are planning to increase investment during the first half of 2007, based on an expected economic upturn. 21.4% of businesses surveyed said they would increase investment, compared to 10.5% who plan on decreases. Many large companies also expressed an opinion that they would be affected by the removal of Taiwan's 40% investment cap in Mainland China, and a majority of polled companies said they planned on increasing foreign investment, with China as the #1 destination.

According to a survey done by the Economic Daily News, many Taiwanese firms are planning to increase investment during the first half of 2007, based on an expected economic upturn. 21.4% of businesses surveyed said they would increase investment, compared to 10.5% who plan on decreases. Many large companies also expressed an opinion that they would be affected by the removal of Taiwan's 40% investment cap in Mainland China, and a majority of polled companies said they planned on increasing foreign investment, with China as the #1 destination.

read source article
taiwan

Cable-failure Alert System to be Implemented in Pipeline

Since a series of earthquakes near Taiwan caused tremendous damages in East Asia's E-commerce and online technical support, Hong Kong Telecommunications plans to implement a cable-failure alert system to inform the public of future network failures. The new alert system is expected to effectively deal with submarine-cable emergencies so as to diminish negative influences on East Asia's economies.

Since a series of earthquakes near Taiwan caused tremendous damages in East Asia's E-commerce and online technical support, Hong Kong Telecommunications plans to implement a cable-failure alert system to inform the public of future network failures. The new alert system is expected to effectively deal with submarine-cable emergencies so as to diminish negative influences on East Asia's economies.

read source article
taiwan

The Effect of Financial Repression & Enforcement on Entrepreneurship and Economic Development

This paper studies the effect of financial repression and contract enforcement on entrepreneurship and economic development. We construct and solve a general equilibrium model with heterogeneous agents, occupational choice and two Financial frictions: intermediation costs and financial contract enforcement. Occupational choice and firm size are determined endogenously, and depend on agent type (wealth and ability) and the credit market frictions. The model shows that differences across countries in intermediation costs and enforcement generate differences in occupational choice, firm size, credit, output and inequality. Counterfactual experiments are performed for Latin American, European, transition and high growth Asian countries. We use empirical estimates of each country's financial frictions, and United States values for all other parameters. The results allow us to isolate the quantitative effect of these financial frictions in explaining the performance gap between each country and the United States. The results depend critically on whether a general equilibrium factor price effect is operative, which in turn depends on whether financial markets are open or closed. This yields a positive policy prescription: If the goal is to maximize steady-state efficiency, financial reforms should be accompanied by measures to increase financial capital mobility.

This paper studies the effect of financial repression and contract enforcement on entrepreneurship and economic development. We construct and solve a general equilibrium model with heterogeneous agents, occupational choice and two Financial frictions: intermediation costs and financial contract enforcement. Occupational choice and firm size are determined endogenously, and depend on agent type (wealth and ability) and the credit market frictions. The model shows that differences across countries in intermediation costs and enforcement generate differences in occupational choice, firm size, credit, output and inequality. Counterfactual experiments are performed for Latin American, European, transition and high growth Asian countries. We use empirical estimates of each country's financial frictions, and United States values for all other parameters. The results allow us to isolate the quantitative effect of these financial frictions in explaining the performance gap between each country and the United States. The results depend critically on whether a general equilibrium factor price effect is operative, which in turn depends on whether financial markets are open or closed. This yields a positive policy prescription: If the goal is to maximize steady-state efficiency, financial reforms should be accompanied by measures to increase financial capital mobility.

read source article
taiwan

An Empirical Study of Asian Stock Volatility Using Stochastic Volatility Factor Model: Factor Analysis and Forecasting

This paper is an empirical study of Asian stock volatility using stochastic volatility factor (SVF) model of Cipollini and Kapetanios (2005). We adopt their approach to carry out factor analysis and to forecast volatility. Our results show some Asian factors exhibit long memory that is in line with existing empirical findings in financial volatility. However, their local-factor SVF model is not powerful enough in forecasting Asian volatility. This has led us to propose an extension to a multi-factor SVF model. We also discuss how to produce forecast using this multi-factor model.

This paper is an empirical study of Asian stock volatility using stochastic volatility factor (SVF) model of Cipollini and Kapetanios (2005). We adopt their approach to carry out factor analysis and to forecast volatility. Our results show some Asian factors exhibit long memory that is in line with existing empirical findings in financial volatility. However, their local-factor SVF model is not powerful enough in forecasting Asian volatility. This has led us to propose an extension to a multi-factor SVF model. We also discuss how to produce forecast using this multi-factor model.

read source article
taiwan

Monetary and Exchange Rate Stability in South East Asia

Regaining exchange rate stability has been a major monetary policy goal of East Asian countries in the aftermath of the 1997/98 currency crisis. While most countries have abstained from re-establishing a formal US Dollar peg, they have typically managed the US Dollar exchange rate de facto. We show that most of these countries were able to regain their monetary credibility within a relatively short time period. The Argentine crisis in 2001 caused a minor setback in this process for some countries. We measure the credibility of monetary policy by separating the fundamental and excess volatility of the exchange rate on the basis of a chartist fundamentalist model. The degree of excess volatility is interpreted as the ability of the central bank to manage the exchange rate via the coordination channel.

Regaining exchange rate stability has been a major monetary policy goal of East Asian countries in the aftermath of the 1997/98 currency crisis. While most countries have abstained from re-establishing a formal US Dollar peg, they have typically managed the US Dollar exchange rate de facto. We show that most of these countries were able to regain their monetary credibility within a relatively short time period. The Argentine crisis in 2001 caused a minor setback in this process for some countries. We measure the credibility of monetary policy by separating the fundamental and excess volatility of the exchange rate on the basis of a chartist fundamentalist model. The degree of excess volatility is interpreted as the ability of the central bank to manage the exchange rate via the coordination channel.

read source article
taiwan

Regional Vulnerability: The Case of East Asia

In a case study of six East Asian economies, we use dynamic factor analysis to estimate a regional component of the exchange market pressure index (EMPI) as a measure of regional financial stress. The extent to which this indicator is explained by regional economic and financial factors is interpreted as regional vulnerability to crisis. We find that regional external liabilities and exuberance in domestic stock and credit markets, as well as the US high yield spread, were positively correlated with regional vulnerability. Individual country EMPIs are also explained by regional factors, with country-specific factors and trade linkages playing little role.

In a case study of six East Asian economies, we use dynamic factor analysis to estimate a regional component of the exchange market pressure index (EMPI) as a measure of regional financial stress. The extent to which this indicator is explained by regional economic and financial factors is interpreted as regional vulnerability to crisis. We find that regional external liabilities and exuberance in domestic stock and credit markets, as well as the US high yield spread, were positively correlated with regional vulnerability. Individual country EMPIs are also explained by regional factors, with country-specific factors and trade linkages playing little role.

read source article
taiwan

Proposed Rules of Origin in Emerging Asia-Pacific Preferential Trade Agreements: Will PTAs Promote Trade and Development?

World trade is increasingly being dominated by preferential trade agreements that have taken precedence over multilateral trade negotiations. Within Asia and the Pacific an explosion of bilateral deals is taking place that seems likely to produce a tangle of hub-spoke trade blocs centered on major Asian or Pacific countries.

World trade is increasingly being dominated by preferential trade agreements that have taken precedence over multilateral trade negotiations. Within Asia and the Pacific an explosion of bilateral deals is taking place that seems likely to produce a tangle of hub-spoke trade blocs centered on major Asian or Pacific countries.

read source article
taiwan

Taiwanese Chipmaker Partners with Japanese Firm to Build in China

Despite historically constrained relations, Taiwan's leading DRAM (dynamic random access memory) chip maker, has reportedly decided to join hands with Japanese firm Renesas to set up an eight-inch wafer factory in China. This could be an signal that Taiwan's government is willing to ease the few remaining mainland investment restrictions.

Despite historically constrained relations, Taiwan's leading DRAM (dynamic random access memory) chip maker, has reportedly decided to join hands with Japanese firm Renesas to set up an eight-inch wafer factory in China. This could be an signal that Taiwan's government is willing to ease the few remaining mainland investment restrictions.

read source article
taiwan

Taiwan`s Optoelectronics Industry

Taiwan's optoelectronics industry generated total revenue of US$39 billion throughout 2006, increasing 11% from a year earlier and representing a 13% share of the world market, according to a study recently released by a Taiwan-based market research organization. The government-backed Photonics Industry & Technology Development Association (PIDA) pointed out that the Taiwan industry's year-on-year increase rate posted last year was higher than world average of 7%. Optic-storage production was the second-largest segment of the Taiwan industry with revenue of US$7.2 billion in 2006, constituting around 20% of the Taiwan industry.

Taiwan's optoelectronics industry generated total revenue of US$39 billion throughout 2006, increasing 11% from a year earlier and representing a 13% share of the world market, according to a study recently released by a Taiwan-based market research organization. The government-backed Photonics Industry & Technology Development Association (PIDA) pointed out that the Taiwan industry's year-on-year increase rate posted last year was higher than world average of 7%. Optic-storage production was the second-largest segment of the Taiwan industry with revenue of US$7.2 billion in 2006, constituting around 20% of the Taiwan industry.

read source article
taiwan

The Impact of Bank Run on Taiwan Banking System

Standard & Poor's Ratings Services Co. recently said that, because of effective government action, the small deposit run on The Chinese Bank is not expected to have a significant impact on system confidence or stability in Taiwan. The possible collapse of the highly leveraged Rebar Group is not expected to hit the banking industry too hard.

Standard & Poor's Ratings Services Co. recently said that, because of effective government action, the small deposit run on The Chinese Bank is not expected to have a significant impact on system confidence or stability in Taiwan. The possible collapse of the highly leveraged Rebar Group is not expected to hit the banking industry too hard.

read source article
taiwan

Understanding the Latest Wave and Future Shape of Regional Trade and Cooperation Agreements in Asia

Asia accounts for more than 30% of world GDP and contributes half of the global growth in recent years. Despite high growth rates, Asia is still facing considerable socio-economic challenges. If Asia is to reemerge as a major power in the global economy and in order for the region to successfully address its own challenges and issues there is a need to make the region's economies more integrated regionally and internationally. Following the recent global trend, Asia witnessed a wave of subregional and bilateral trade agreements. This paper analyzes the recent trends and patterns and nature of regional trade and cooperation agreements (RTCAs) in Asia and associated problems and prospects. It also attempts to understand the latest wave and the future shape of RTCAs and examines if these RTCAs provide the basis for a new Asia-wide cooperation or for the emergence of new regional trade in blocs of several subregional groupings.

Asia accounts for more than 30% of world GDP and contributes half of the global growth in recent years. Despite high growth rates, Asia is still facing considerable socio-economic challenges. If Asia is to reemerge as a major power in the global economy and in order for the region to successfully address its own challenges and issues there is a need to make the region's economies more integrated regionally and internationally. Following the recent global trend, Asia witnessed a wave of subregional and bilateral trade agreements. This paper analyzes the recent trends and patterns and nature of regional trade and cooperation agreements (RTCAs) in Asia and associated problems and prospects. It also attempts to understand the latest wave and the future shape of RTCAs and examines if these RTCAs provide the basis for a new Asia-wide cooperation or for the emergence of new regional trade in blocs of several subregional groupings.

read source article
taiwan

Asian Economic Integration: ASEAN+3+1 or ASEAN+1s?

In this paper an attempt is made to evaluate the most efficient approach to regional economic integration in Asia. For the purpose, Asia is defined as inclusive of ASEAN, the plus three economies of China, Japan, Korea and India that is the ASEAN plus four. Given that ASEAN is an existing regional bloc in Asia, alternative approaches to the alignment of the plus four economies with ASEAN for the formation of the ASEAN+4 trade bloc have been evaluated to determine if there are efficiency costs by way of distortion in the patterns of trade away from those expected on the basis of comparative advantage. The findings of our analysis underscore the efficiency of a prior alignment with ASEAN for all the plus four economies.

In this paper an attempt is made to evaluate the most efficient approach to regional economic integration in Asia. For the purpose, Asia is defined as inclusive of ASEAN, the plus three economies of China, Japan, Korea and India that is the ASEAN plus four. Given that ASEAN is an existing regional bloc in Asia, alternative approaches to the alignment of the plus four economies with ASEAN for the formation of the ASEAN+4 trade bloc have been evaluated to determine if there are efficiency costs by way of distortion in the patterns of trade away from those expected on the basis of comparative advantage. The findings of our analysis underscore the efficiency of a prior alignment with ASEAN for all the plus four economies.

read source article
taiwan

The Evolution of the East Asian Currency Baskets – Still Undisclosed and Changing

Both before and after the Asian crisis, the dollar has been the dominant anchor and reserve currency in East Asia. Due to underdeveloped capital markets and the limited international role of their domestic currencies, the East Asian countries (except Japan) are likely to continue to stabilize exchange rates and to accumulate international reserves. Yet expectations of further dollar depreciation may trigger a re-orientation of exchange rate policies based on basket strategies. Rolling econometric estimations of the basket structures in East Asia suggest growing weights for the Japanese yen in most East Asian currency baskets. The role of the euro as a reserve currency in East Asia remains uncertain.

Both before and after the Asian crisis, the dollar has been the dominant anchor and reserve currency in East Asia. Due to underdeveloped capital markets and the limited international role of their domestic currencies, the East Asian countries (except Japan) are likely to continue to stabilize exchange rates and to accumulate international reserves. Yet expectations of further dollar depreciation may trigger a re-orientation of exchange rate policies based on basket strategies. Rolling econometric estimations of the basket structures in East Asia suggest growing weights for the Japanese yen in most East Asian currency baskets. The role of the euro as a reserve currency in East Asia remains uncertain.

read source article
taiwan

Asian Equity Markets: Growth,Opportunities, and Challenges

Asian equity markets have grown significantly in size since the early 1990s, driven by strong international investor inflows, growing regional financial integration, capital account liberalization, and structural improvements to markets. The development of equity markets provides a more diversified set of channels for financial intermediation to support growth, thus bolstering medium-term financial stability. At the same time, as highlighted by the May-June 2006 market corrections, the increasing role of stock markets potentially changes the nature of macroeconomic and financial stability risks, as well as the policy requirements for dealing with these risks.

Asian equity markets have grown significantly in size since the early 1990s, driven by strong international investor inflows, growing regional financial integration, capital account liberalization, and structural improvements to markets. The development of equity markets provides a more diversified set of channels for financial intermediation to support growth, thus bolstering medium-term financial stability. At the same time, as highlighted by the May-June 2006 market corrections, the increasing role of stock markets potentially changes the nature of macroeconomic and financial stability risks, as well as the policy requirements for dealing with these risks.

read source article
taiwan

Is Asia Prepared for an Aging Population?

Many Asian countries (such as China, Singapore, Korea, Thailand, Malaysia, Indonesia, India, and the Philippines) will experience a significant aging of their populations during the next several decades. This paper explores how these aging Asian countries are addressing and anticipating the challenges of an aging society. It suggests that Asia's preparedness for an aging population is decidedly mixed. While growth policies have been successful, much work is still needed in many countries to establish an adequate and farsighted policy framework in the areas of pensions, health insurance, and labor market policies.

Many Asian countries (such as China, Singapore, Korea, Thailand, Malaysia, Indonesia, India, and the Philippines) will experience a significant aging of their populations during the next several decades. This paper explores how these aging Asian countries are addressing and anticipating the challenges of an aging society. It suggests that Asia's preparedness for an aging population is decidedly mixed. While growth policies have been successful, much work is still needed in many countries to establish an adequate and farsighted policy framework in the areas of pensions, health insurance, and labor market policies.

read source article
taiwan

Vietnam's Membership in WTO to Increase Investment Competition

Taiwan currently leads all foreign investments in Vietnam at US$7.9 billion. However, with Vietnam's recent acceptance to the WTO, Taiwan will be facing tough competition from the US, Europe, Japan, and Korea. If three major projects are approved by the Vietnamese government, US investment will double to $8 billion, possibly eclipsing Taiwan's total. Taiwanese investors need to adjust their investment strategies in line with Vietnam's shift from labor intensive industries to IT and hi-tech manufacturing. According to figures from the Taiwans Bureau of Foreign Trade, two-way trade between Vietnam and Taiwan amounted to $4 billion last year, with Taiwans export of $3.4 billion from Taiwan.

Taiwan currently leads all foreign investments in Vietnam at US$7.9 billion. However, with Vietnam's recent acceptance to the WTO, Taiwan will be facing tough competition from the US, Europe, Japan, and Korea. If three major projects are approved by the Vietnamese government, US investment will double to $8 billion, possibly eclipsing Taiwan's total. Taiwanese investors need to adjust their investment strategies in line with Vietnam's shift from labor intensive industries to IT and hi-tech manufacturing. According to figures from the Taiwans Bureau of Foreign Trade, two-way trade between Vietnam and Taiwan amounted to $4 billion last year, with Taiwans export of $3.4 billion from Taiwan.

read source article
taiwan

Bank of Taiwan Mulling Acquisition of Land Bank

Taiwan's state owned bank may absorb Taiwan's Land Bank in an attempt to become a more impactive player in the region. The merger is viewed as a means to gain influence and increase growth in lending. Tsai Jer-shyong, BofT's Chairman said, "The bank should grow to at least $US 200bn in assets..." and would compete internationally.

Taiwan's state owned bank may absorb Taiwan's Land Bank in an attempt to become a more impactive player in the region. The merger is viewed as a means to gain influence and increase growth in lending. Tsai Jer-shyong, BofT's Chairman said, "The bank should grow to at least $US 200bn in assets..." and would compete internationally.

read source article
taiwan

China-Taiwan Trade Rose 16.2% in 10 Months

Trade between China and Taiwan increase by 16.2 percent to US$72.47 billion for the last 10 months. Mainland China has become Taiwan's largest market, replacing the US since year-end of 2001. Furthermore, since 2002, the mainland has also become Taiwan's largest overseas investment accounting 50 percent of the country's total foreign investment.

Trade between China and Taiwan increase by 16.2 percent to US$72.47 billion for the last 10 months. Mainland China has become Taiwan's largest market, replacing the US since year-end of 2001. Furthermore, since 2002, the mainland has also become Taiwan's largest overseas investment accounting 50 percent of the country's total foreign investment.

read source article
taiwan

Taiwan Raises Interest Rates

Taiwan central bank has decided to raise its key interest rates by a further 12.50 basis points, effective from December 29th, 2006. This is the 10th round of rate hikes since September 2004 and has brought the cumulative rate increases to a total of 137.5 basis points.

Taiwan central bank has decided to raise its key interest rates by a further 12.50 basis points, effective from December 29th, 2006. This is the 10th round of rate hikes since September 2004 and has brought the cumulative rate increases to a total of 137.5 basis points.

read source article
taiwan

Economic Integration in Asia: Bilateral Free Trade Agreements Versus Asian Single Market

Institutional regionalisation has come late to East Asia compared to Europe, but its pace has accelerated since the mid-1990s. Many agreements, including bilateral ones such as those signed between Singapore and Japan, and plurilateral ones such as those between ASEAN countries (e.g. ASEAN Free Trade Agreement (AFTA below)), cover an ever-increasing portion of the East Asian region, including China. We first analyse regional economic integration in East Asia, questioning the notion of open regionalism. In a second part we explore the possible consequences of different kind of agreements. We rely on the CEPII's CGE model (MIRAGE), adapted to the specificity of Asia's economic integration. As regards the geometry of the agreement(s), two sets of scenarios are considered, following a Hub-and-Spoke versus a Full-FTA assumption, with or without sensitive products inclusion.
Among the main results, we find that Asian countries do have diverging interests. While ASEAN maximises its benefit in the bilateral scenario including agricultural liberalisation (SC1); Japan and Korea are the best in the Asia global agreement scenario, including sensitive products for Japan (SC2) but excluding these products for Korea (SC 4). For EU- 25, it appears that increased competition within Asia has a negative impact on its goods exports but positive impact on its service exportations. The main losers are the close countries and primary goods producers such as Taiwan, South Asia (excluding India), North of Africa, South America.

Institutional regionalisation has come late to East Asia compared to Europe, but its pace has accelerated since the mid-1990s. Many agreements, including bilateral ones such as those signed between Singapore and Japan, and plurilateral ones such as those between ASEAN countries (e.g. ASEAN Free Trade Agreement (AFTA below)), cover an ever-increasing portion of the East Asian region, including China. We first analyse regional economic integration in East Asia, questioning the notion of open regionalism. In a second part we explore the possible consequences of different kind of agreements. We rely on the CEPII's CGE model (MIRAGE), adapted to the specificity of Asia's economic integration. As regards the geometry of the agreement(s), two sets of scenarios are considered, following a Hub-and-Spoke versus a Full-FTA assumption, with or without sensitive products inclusion.
Among the main results, we find that Asian countries do have diverging interests. While ASEAN maximises its benefit in the bilateral scenario including agricultural liberalisation (SC1); Japan and Korea are the best in the Asia global agreement scenario, including sensitive products for Japan (SC2) but excluding these products for Korea (SC 4). For EU- 25, it appears that increased competition within Asia has a negative impact on its goods exports but positive impact on its service exportations. The main losers are the close countries and primary goods producers such as Taiwan, South Asia (excluding India), North of Africa, South America.

read source article
taiwan

Global Imbalances and Emerging Markets

There has been a massive increase in foreign currency reserves held by a group of ten East Asian economies since the 1997-98 crises. At the end of March 2006, the reserves of this group stood at $2.6 trillion, accounting for 57 percent of total global reserves.

There has been a massive increase in foreign currency reserves held by a group of ten East Asian economies since the 1997-98 crises. At the end of March 2006, the reserves of this group stood at $2.6 trillion, accounting for 57 percent of total global reserves.

read source article
taiwan

Monetary Cooperation in East Asia: How Far Can East Asian Countries Go?

The paper intends to discuss monetary cooperation in East Asia by answering the following three questions: (1) Do the member countries of the Chiang Mai Initiative (CMI) have potentials to form an Optimal Currency Area (OCA)? (2) What are the obstacles for establishing an institutionalized monetary regime from practical point of view? (3) What is the timeline for forming a monetary union in the region?

The paper intends to discuss monetary cooperation in East Asia by answering the following three questions: (1) Do the member countries of the Chiang Mai Initiative (CMI) have potentials to form an Optimal Currency Area (OCA)? (2) What are the obstacles for establishing an institutionalized monetary regime from practical point of view? (3) What is the timeline for forming a monetary union in the region?

read source article
taiwan

Chinese Perspective of East Asian Exchange Rate Coordination

The paper discussed the Necessity for East Asia and China to Participate and Promote The Regional Exchange Rate Coordination, the possible pace of the exchange rate coordination in East Asia and how to start this process.

The paper discussed the Necessity for East Asia and China to Participate and Promote The Regional Exchange Rate Coordination, the possible pace of the exchange rate coordination in East Asia and how to start this process.

read source article
taiwan

Taiwan Must Think Globally---Think Tank

According to Chen Po-chih, chairman of Taiwan Thinktank, the country must not focus all of their investments to a certain part of the world. The country must think globally to be able to compete with South Korea. He further stated that the main key to the gap between Taiwan and Korea lies in the fact that the latter seeks to be No. 1 in the world, while the former is satisfied to be No. 1 only in China. In addition, he also mentioned that Taiwan must also focus on building a fortress of knowledge so that the country can be competitive and gain advantage over its rivals.

According to Chen Po-chih, chairman of Taiwan Thinktank, the country must not focus all of their investments to a certain part of the world. The country must think globally to be able to compete with South Korea. He further stated that the main key to the gap between Taiwan and Korea lies in the fact that the latter seeks to be No. 1 in the world, while the former is satisfied to be No. 1 only in China. In addition, he also mentioned that Taiwan must also focus on building a fortress of knowledge so that the country can be competitive and gain advantage over its rivals.

read source article
taiwan

Manila Postpones ASEAN Summit to January

An official announcement released by Ambassador Marciano Paynor, head of the Philippine organizing committee, said that the 12th Association of Southeast Asian Nations (ASEAN) summit, scheduled next week in Cebu, has been postponed to January due to a strong storm heading the island. The ambassador also denied reports that the postponement was made due to possible terrorist attacks at the site of the summit.

An official announcement released by Ambassador Marciano Paynor, head of the Philippine organizing committee, said that the 12th Association of Southeast Asian Nations (ASEAN) summit, scheduled next week in Cebu, has been postponed to January due to a strong storm heading the island. The ambassador also denied reports that the postponement was made due to possible terrorist attacks at the site of the summit.

read source article
taiwan

ADB: Economic Growth in East Asia to Remain Strong in 2007

Asian Development Bank (ADB) predicted that East Asia's economic growth will continue to be strong next year after the expected robust performance of East Asian economies this year. However, the bank warned that the danger of financial market turbulence which could affect Asia is also increasing. Also, ADB suggested that there could be a slight decrease on the demand for East Asia's exports, due to an expected slowdown in growth in the US and euro area. Coupled with strong domestic consumption, this should maintain economic expansion across the East Asian region, the lender bank argued.

Asian Development Bank (ADB) predicted that East Asia's economic growth will continue to be strong next year after the expected robust performance of East Asian economies this year. However, the bank warned that the danger of financial market turbulence which could affect Asia is also increasing. Also, ADB suggested that there could be a slight decrease on the demand for East Asia's exports, due to an expected slowdown in growth in the US and euro area. Coupled with strong domestic consumption, this should maintain economic expansion across the East Asian region, the lender bank argued.

read source article
taiwan

US and Asian Economies Differ Over Free Trade Bloc Process

The United States and Asian economies are at odds on how to implement a plan to set up a Asia-Pacific free trade area. The Asian economies want to start a free trade area among themselves before considering a free trade area for the Asia-Pacific. However, the US government wants to implement these plans simulataneously. Washington is pushing a prompt implementation of the Asia-Pacific plan because it would jolt non-Apec members, such as Brazil and India, to restart talks for a new global trace pact.

The United States and Asian economies are at odds on how to implement a plan to set up a Asia-Pacific free trade area. The Asian economies want to start a free trade area among themselves before considering a free trade area for the Asia-Pacific. However, the US government wants to implement these plans simulataneously. Washington is pushing a prompt implementation of the Asia-Pacific plan because it would jolt non-Apec members, such as Brazil and India, to restart talks for a new global trace pact.

read source article
taiwan

Central Bankers Upbeat Over Global Growth Next Year

The world's top central bankers discussed the future of global growth. There seems to be a consensus that the global economy was strong and sustainable, but in order to mitigate risks banks would have to fix their attention on inflation. Some hint to continued raises in interest rates to offset "overly optimistic investment".

The world's top central bankers discussed the future of global growth. There seems to be a consensus that the global economy was strong and sustainable, but in order to mitigate risks banks would have to fix their attention on inflation. Some hint to continued raises in interest rates to offset "overly optimistic investment".

read source article
taiwan

APEC Shelves Free Trade Zone Plans

The Asian Pacific Economic Co-operation forum has shelved plans to create a "vast free trade area" that would aggregate the numerous bi-lateral and regional tarde agreements in the region. The ambitious proposal lost mometum to various side deals at the forum. APEC has shifted its focus to resurrecting talks on the Doha round of the WTO.

The Asian Pacific Economic Co-operation forum has shelved plans to create a "vast free trade area" that would aggregate the numerous bi-lateral and regional tarde agreements in the region. The ambitious proposal lost mometum to various side deals at the forum. APEC has shifted its focus to resurrecting talks on the Doha round of the WTO.

read source article
taiwan

Central Bank of China Liberalizes Bank Loans to Foreigners

The Central Bank of China announced plans to open up NT-dollar bank loans for foreigners without permanent residences in Taiwan and loans for foreigners using domestic stocks as collaterals.

The Central Bank of China announced plans to open up NT-dollar bank loans for foreigners without permanent residences in Taiwan and loans for foreigners using domestic stocks as collaterals.

read source article
taiwan

Asian Market: Potential Risks Ahead

Although Asian stock markets have performed very well this past year, analysts foresee a risk ahead. The next 12 months are said to prove extremely volatile for equity markets in Asia, as regional instability increases.

Although Asian stock markets have performed very well this past year, analysts foresee a risk ahead. The next 12 months are said to prove extremely volatile for equity markets in Asia, as regional instability increases.

read source article
taiwan

Taiwan's UMC 3rd Quarter Profits almost Quadruple from Last Year

United Microelectronics Corp. saw its net profit for the third quarter reach NT8.59 billion (US $256.85 million) which is almost four times more than it showed in the same quarter last year. Analysts had only expected NT6.52 billion from the world's second-biggest semiconductor chipmaker. UMC Chairman Jackson Hu warns that 4th quarter shipments of wafers would fall by 2-3% since client corporations were likely to be selling existing inventories.

United Microelectronics Corp. saw its net profit for the third quarter reach NT8.59 billion (US $256.85 million) which is almost four times more than it showed in the same quarter last year. Analysts had only expected NT6.52 billion from the world's second-biggest semiconductor chipmaker. UMC Chairman Jackson Hu warns that 4th quarter shipments of wafers would fall by 2-3% since client corporations were likely to be selling existing inventories.

read source article
taiwan

Profit-taking Weighs on Nikkei; South Korea Lower

Asian stocks finished mixed Wednesday, with Japan's Nikkei sinking to a multi-month low.

Asian stocks finished mixed Wednesday, with Japan's Nikkei sinking to a multi-month low.

read source article
taiwan

Chevron to Invest $6 billion in Indonesia Gas Fields

Chevron Corp. plans to invest $6 billion to develop gas fields off the coast of Borneo.  Indonesia is the world's top liquefied natural gas (LNG) exporter but has recently encountered problems in fulfilling contractual commitments to traditional buyers such as Japan, South Korea, and Taiwan.  Chevron hopes to alleviate the production issues by boosting its output from the Gehem and Gendalo fields,  which they believe will offset the slowdown of other gas fields in the region.

Chevron Corp. plans to invest $6 billion to develop gas fields off the coast of Borneo.  Indonesia is the world's top liquefied natural gas (LNG) exporter but has recently encountered problems in fulfilling contractual commitments to traditional buyers such as Japan, South Korea, and Taiwan.  Chevron hopes to alleviate the production issues by boosting its output from the Gehem and Gendalo fields,  which they believe will offset the slowdown of other gas fields in the region.

read source article
taiwan

India-Taiwan Bilateral Trade to Reach $3billion in 2006

"Trade between India and Taiwan is expected to touch 3 billion dollar this year on the back of growing ICT (information, communication and technology) sector in the country, a Taiwanese expert on Friday said."

"Trade between India and Taiwan is expected to touch 3 billion dollar this year on the back of growing ICT (information, communication and technology) sector in the country, a Taiwanese expert on Friday said."

read source article
taiwan

Consumer Prices Fall in September

The consumer price index dropped 1.22 percent from a year earlier, riding on a decline in vegetable and clothing costs.  This is great news for the central bank which now has the opportunity to pause after raising interest rates to a five-year high, even as economic growth slowed.  Annual inflation forecasts are looking to be lowered, and the outlook seems even more promising as oil prices continue to drop, having hit a 7-month low of US $57.75/barrel on Wednesday.

The consumer price index dropped 1.22 percent from a year earlier, riding on a decline in vegetable and clothing costs.  This is great news for the central bank which now has the opportunity to pause after raising interest rates to a five-year high, even as economic growth slowed.  Annual inflation forecasts are looking to be lowered, and the outlook seems even more promising as oil prices continue to drop, having hit a 7-month low of US $57.75/barrel on Wednesday.

read source article
taiwan

Asian Exports Slow as US Demand Eases

High oil costs and rising interest rates in the last few months has slowed US demand for Asia-made products, consequently slowing Asian exports. The US economy grew at a rate of only 2.6% in the second quarter, which is less than half of the 5.6% pace in the first quarter. Malaysia, a production base for Intel Corp. and Dell Inc, has reported a decrease in overseas sales. Bank Negara's annual growth forecast has been lowered to 5.8% from the 6.0% estimated in March. Taiwan and Singapore also saw unexpected drops in exports. Despite the ailing US economy, increased demand in other markets such as China and the EU, have already begun to compensate for the effect of the US slowdown.

High oil costs and rising interest rates in the last few months has slowed US demand for Asia-made products, consequently slowing Asian exports. The US economy grew at a rate of only 2.6% in the second quarter, which is less than half of the 5.6% pace in the first quarter. Malaysia, a production base for Intel Corp. and Dell Inc, has reported a decrease in overseas sales. Bank Negara's annual growth forecast has been lowered to 5.8% from the 6.0% estimated in March. Taiwan and Singapore also saw unexpected drops in exports. Despite the ailing US economy, increased demand in other markets such as China and the EU, have already begun to compensate for the effect of the US slowdown.

read source article
taiwan

Standard Chartered to buy Hsinchu International Bank

London-based Standard Chartered Plc, which earns two-thirds of its lending profits in Asia, plans to buy the Hsinchu International Bank for $1.2 billion in the first overseas takeover of a Chinese bank.  They will join the highly competitive market for the $700 billion in local Taiwanese assets, where there are currently over 45 banks and 300 credit associations in operation.  Shares of Standard Chartered fell 0.9 percent on Friday while shares of Hsinchu Bank rose an astounding 6.9% after the buyout was announced.

London-based Standard Chartered Plc, which earns two-thirds of its lending profits in Asia, plans to buy the Hsinchu International Bank for $1.2 billion in the first overseas takeover of a Chinese bank.  They will join the highly competitive market for the $700 billion in local Taiwanese assets, where there are currently over 45 banks and 300 credit associations in operation.  Shares of Standard Chartered fell 0.9 percent on Friday while shares of Hsinchu Bank rose an astounding 6.9% after the buyout was announced.

read source article
taiwan

Oil Prices Fall Below $60 in Asia

Crude oil fell to below $60 a barrel this morning in the Asian markets. Oil prices have dropped nearly 25% since mid July. Experts say this is still a strong price, but some say its expected to rise before the end of the year.

Crude oil fell to below $60 a barrel this morning in the Asian markets. Oil prices have dropped nearly 25% since mid July. Experts say this is still a strong price, but some say its expected to rise before the end of the year.

read source article
taiwan

Silicon Wafer Industry Needs 3-6 Months to Clear Inventory

The semiconductor fabrication industry will have to wait another 3-6 months to clear its current inventory before heading back on the road to production and recovery.  A major setback has been the lower-than-expected boost in computer sales that was predicted to coincide with the recent launch of new processors and Microsoft's latest operating system.  Furthermore, China's cellphone market is still flooded with excess inventories.  TSMC is expecting to incur a moderate loss over the whole of 2006.

The semiconductor fabrication industry will have to wait another 3-6 months to clear its current inventory before heading back on the road to production and recovery.  A major setback has been the lower-than-expected boost in computer sales that was predicted to coincide with the recent launch of new processors and Microsoft's latest operating system.  Furthermore, China's cellphone market is still flooded with excess inventories.  TSMC is expecting to incur a moderate loss over the whole of 2006.

read source article
taiwan

Asia Stocks Strong, Thailand Takes a Hit

Following the military coup in Thailand, the Thai stock market fell today with some shares falling as much as 4.2%. However most of Asia seemed unaffected by the trouble in Thailand. With the Japanese automaker Toyota and Taiwan Semiconductor leading the way, the Asia stock market rose today. Also contributing to the Asia market success is the declining cost of oil, which dropped to below $60 a barrel.

Following the military coup in Thailand, the Thai stock market fell today with some shares falling as much as 4.2%. However most of Asia seemed unaffected by the trouble in Thailand. With the Japanese automaker Toyota and Taiwan Semiconductor leading the way, the Asia stock market rose today. Also contributing to the Asia market success is the declining cost of oil, which dropped to below $60 a barrel.

read source article
taiwan

Most Asian Markets Rise as Lower Oil Prices Boost Shares in Tokyo

Indices in Hong Kong and Japan rebounded from recent loss-streaks as a fall in crude oil prices has alleviated market tension, boosting investor confidence and increasing activity.  Most east-Asian exchanges shared similar change of pace while trade in Southeast Asia remained relatively flat or declined slightly.

Indices in Hong Kong and Japan rebounded from recent loss-streaks as a fall in crude oil prices has alleviated market tension, boosting investor confidence and increasing activity.  Most east-Asian exchanges shared similar change of pace while trade in Southeast Asia remained relatively flat or declined slightly.

read source article
taiwan

ASIA DEVELOPMENT OUTLOOK 2007

Despite challenges from rising oil costs, commodity costs, and interest rates, the Asia Development Bank expects 7.7% growth for 2007.

Despite challenges from rising oil costs, commodity costs, and interest rates, the Asia Development Bank expects 7.7% growth for 2007.

read source article
taiwan

Asian Stocks Up During U.S. Trading

Asian stocks rose due to heavy US trading for third day in a row.  Precious Metals also rallied.

Asian stocks rose due to heavy US trading for third day in a row.  Precious Metals also rallied.

read source article
taiwan

100,000 Signature Proposal Submitted to Recover KMT's Assets

An alliance, led by the Democratic Progressive Party, proposed a national referendum on recovering assets that were allegedly stolen by the Chinese Nationalist Party (KMT) during its 55-year rule of Taiwan.  The proposal letter included signatures of over 100,000 people, and the DPP will continue to collect them, expecting to reach 800,000 by the end of this year.  Many people feel that the assets belong to the country, and KMT Chairman Ma Ying-Jeou has already promised to return some to the national treasury.  The KMT was once described as the richest political party in the world, and a report last month claims their total assets to be worth US $842.9 million.

An alliance, led by the Democratic Progressive Party, proposed a national referendum on recovering assets that were allegedly stolen by the Chinese Nationalist Party (KMT) during its 55-year rule of Taiwan.  The proposal letter included signatures of over 100,000 people, and the DPP will continue to collect them, expecting to reach 800,000 by the end of this year.  Many people feel that the assets belong to the country, and KMT Chairman Ma Ying-Jeou has already promised to return some to the national treasury.  The KMT was once described as the richest political party in the world, and a report last month claims their total assets to be worth US $842.9 million.

read source article
taiwan

New LED technology places Taiwan in Format Dominance

Electronics and optoelectronics scientists at the government funded ITRI (Industrial Technology Research Institute), based out of Hsinchu, are licensing a new LED light technology that has manufacturers turning their heads.  The new electrodes, based on "transparent indium tin oxide," are capable of emitting 15% to 20% more lumens than current units.  They also allow for more efficient light dissapation, which results in lesser heat accumulation and lower power requirements for devices taking advantage of it.; such gains are expected to triple as the technology matures.  With a patent on ITO-LED's , Taiwan will play a critical role in the development of the LED format, which is the latest industry evolution in lighting standards.

Electronics and optoelectronics scientists at the government funded ITRI (Industrial Technology Research Institute), based out of Hsinchu, are licensing a new LED light technology that has manufacturers turning their heads.  The new electrodes, based on "transparent indium tin oxide," are capable of emitting 15% to 20% more lumens than current units.  They also allow for more efficient light dissapation, which results in lesser heat accumulation and lower power requirements for devices taking advantage of it.; such gains are expected to triple as the technology matures.  With a patent on ITO-LED's , Taiwan will play a critical role in the development of the LED format, which is the latest industry evolution in lighting standards.

read source article
taiwan

Taiwan's Auto Sales to Drop 30% This Year

Automakers are astounded as a 30% drop follows a record high. The predicted loss of 150,000 sales equates to a revenue loss of NT$90 billion for domestic auto vendors. Indonesia anticipates a similar drop in auto sales.

Automakers are astounded as a 30% drop follows a record high. The predicted loss of 150,000 sales equates to a revenue loss of NT$90 billion for domestic auto vendors. Indonesia anticipates a similar drop in auto sales.

read source article

editor picks 

Other Important News In Taiwan


Taiwan Gets Investment from China

Taiwan will allow investment from mainland China in 100 industries and projects, helping the island's economy to benefit from the warmest cross-strait relations in 60 years. Taiwan will open up 64 sectors in manufacturing, 25 in services and 11 public infrastructure projects from today, the Ministry of Economics Affairs told a briefing in Taipei. Foundries and the liquid-crystal-display and telecommunications industries will remain closed, the ministry said.

Tensions between Taiwan and China eased after Taiwanese President Ma Ying-jeou abandoned his predecessor's pro- independence stance. The island's benchmark stock index rose 23.4 percent this quarter on speculation that closer ties will aid the economy which contracted by a record in the first three months of the year. "This is another major step toward an improving relationship between Taiwan and China," said Kevin Lin, who helps manage NT$1.5 billion ($46 million) at Taishin Securities Investment Trust Co. in Taipei. "The normalization between the two sides will help boost the local economy and corporate earnings in the long run, and thus increase the valuation of local stocks." The benchmark Taiex index climbed by the most since 2001 in the three months to June 30, and Taiwan's dollar rose 3.4 percent against the U.S. currency in the same period.

read source article

Taiwan's Credit Rating Cut to Negative

Taiwan's long-term credit rating outlook was cut to negative from stable by Standard & Poor's Ratings Services, which cited concern about the island's government debt burden and banking system.

Taiwan's long-term credit rating outlook was cut to negative from stable by Standard & Poor's Ratings Services, which cited concern about the island's government debt burden and banking system.

read source article

Uncertainty in Taiwan's Economic Future

Despite signs of improvements in Taiwanese exports, forecasted GDP growth has been declining since the start of 2008. First-quarter statistics for 2009 are expected nevertheless to show sharp overall declines. Export orders in the second quarter are expected to improve, but remain well below zero while any rebound may be due only to restocking orders.

Despite signs of improvements in Taiwanese exports, forecasted GDP growth has been declining since the start of 2008. First-quarter statistics for 2009 are expected nevertheless to show sharp overall declines. Export orders in the second quarter are expected to improve, but remain well below zero while any rebound may be due only to restocking orders.

read source article

Taiwan exports fall for sixth straight month

Taiwanese exports fell 28.6% in February to $12.59 billion.

Taiwanese exports fell 28.6% in February to $12.59 billion. It is the sixth straight month of year-on-year decline, largely a result of slumping global demand. Exports to Hong Kong and Mainland China suffered significantly last month, dropping 25.2% to $5 billion. Although exports fell considerably, the fall in February was not as drastic as the one in January, due to increased activity in the country's electronic manufacturers last month. Considering Taiwan's export dependent economy, the government has predicted the economy to contract around 3% in 2009 as the global financial crisis continues to impact the country. Other analysts have predicted a much harsher contraction with numbers ranging between 5%- 11% for this year.

read source article

Taiwan, Philippines Sign Four Agreements

Taiwan and the Philippines recently signed four trade and investment agreements during a Joint Economic Conference.

Taiwan and the Philippines recently signed four trade and investment agreements during a Joint Economic Conference. The signed agreements include the Memorandum of Understanding (MOU) on Philippine-Taiwan Cooperation on Industrial Technology Development, MOU on SME Food Development, MOU on Intellectual Property Cooperation, and MOU on Standardization and Conformity Assessment for Electronic Products. The conference also saw the unveiling of a new set of investment incentives for Taiwanese companies willing to locate in the Clark and Subic Bay economic corridor.

read source article

Taiwan, China In Negotiations For Economic Cooperation Agreement

Taiwan and China recently started negotiations for a free trade agreement.

Taiwan and China recently started negotiations for a free trade agreement. The Comprehensive Economic Cooperation Agreement (CECA) would eliminate trade barriers and allow the free flow of goods, services and capital between the two interdependent economies. Many people from both sides of the straits see this as an important step towards unification. But Taiwanese officials continue to downplay the political impact of the agreement, saying that the CECA is purely economic and only aims to enable Taiwan to prepare for the ASEAN Plus China agreement that will take effect in 2010. The Taiwanese government hopes that improved economic ties and increasing investment from the mainland will provide a boost for the country's sagging economy.

read source article

Shanghai Seeks Closer Taiwan Financial Links

Shanghai aims to expand financial cooperation with Taiwan

Shanghai has announced that it aims to expand financial cooperation with Taiwan. Taiwan hopes to set more operations on the Chinese mainland including setting up joint ventures in Shanghai and Beijing. Shanghai also hopes to set businesses in Taiwan in order to strengthen financial bonds between the two regions, create a larger talent pool and to build up Shanghai's position as a major international financial center.

read source article

Taiwan Cuts Rate To Record Low As Economy Contracts

Taiwan's central bank slashed the discount rate on 10-day loans to banks from 1.5 percent to 1.25 percent, which is a record low.

Taiwan's central bank slashed the discount rate on 10-day loans to banks from 1.5 percent to 1.25 percent, which is a record low. This comes as a reaction to an unprecedented 8.36 percent drop in gross domestic product in the fourth quarter, the biggest decline since official records began in 1952. Reduced demand for Taiwan's exports have pushed the country's economy to its first recession since the technology bubble burst in 2001. The government forecasts that the economy will shrink by 2.97 percent this year.

read source article

Taiwan: Exports Fell 44.1 Percent Last Month

Taiwan's exports fell for the sixth consecutive month on January by a record 44.1% from the same period on the previous year

Taiwan's exports fell for the sixth consecutive month on January by a record 44.1% from the same period on the previous year. The fall in exports was a result from the plunging global demand in light of the financial crisis. Taiwan did however, experience a 1.2 times increase in trade surplus compared to the same month last year. While exports contracted 44.1% to 12.37 billion, imports dropped 56.5% to $8.97 billion, resulting in a $3.4 billion trade surplus in the month of January.

read source article

60,000 More in Taiwan Apply for Unemployment Benefits in 2008 Than in 2007

In 2008, almost 139,000 Taiwanese people applied for unemployment benefits, an increase of about 60,000 from 2007.

In 2008, almost 139,000 Taiwanese people applied for unemployment benefits, an increase of about 60,000 from 2007. Taiwan's unemployment rate stood at 3.91% in 2007 and jumped to 4.64% in November of 2008.

read source article
most popular posts

Taiwan Exclusives

Browse More Exclusives