Business and Finance

Industrial production expanding

REDIRECTED ORDERS: Apart from a rise in local production, firms have also seen a jump in orders from US customers, in particular for items facing the highest tariffs

Taipei Times
Date: Nov 24, 2018
By: Ted Chen  /  Staff reporter

Indices tracking the nation’s industrial production last month continued to expand and hit a new high for October, as the ongoing US-China trade dispute compelled companies to relocate production to Taiwan, the Ministry of Economic Affairs said yesterday.

The industrial production index rose 4.35 percent month-on-month and 8.25 percent year-on-year to 116.38, while the index for manufacturing, the pillar of industrial output, climbed 5.18 percent month-on-month and 9.24 percent year-on-year, with both indicators continuing an eight-month growth streak, Department of Statistics data showed.

Apart from a rise in local production, businesses have also seen a jump in orders from US customers, in particular for items facing the highest tariffs such as networking equipment and servers, Department of Statistics Director-General Wang Shu-chuan (王淑娟) told a news conference in Taipei.

As companies redirect orders, the output index tracking the nation’s computer, electronics and optolectronics sectors last month increased 13.05 percent month-on-month and 23.87 percent year-on-year to 137.67, the fastest growth since October 2011.    [FULL  STORY]

Hewlett Packard recognized for commitment to social responsibility at Taipei Forum

In 2017, Hewlett Packard Enterprises invested a total of US$20 million dollars into social investments

Taiwan News 
Date: 2018/11/22
By: Duncan DeAeth, Taiwan News, Staff Reporter

Taiwan News Image

TAIPEI (Taiwan News) – The international corporation Hewlett Packard Enterprises (HPE) was recognized for its signifcant effort to pursue socially responsible investment and global sustainability development goals (SDGs) on Thursday, Nov 22 at the Global Corporate Sustainability Forum in Taipei.

The HPE chief sustainability officer, Christopher Wellise, was recognized for his work in the corporations global commitment and orientation towards promoting a sustainable future at the forum’s award ceremony.

In the afternoon, HPE’s head of the Asia-Pacific office of worldwide sustainability, Christine Chiang, outlined Hewlett Packards’s ever expanding commitment to meeting SDGs of the UN and Paris Climate Accord.

Chiang explained that HPE operates under a principle of continuously asking how the company can “do more with less environmental impact.” The company operates a network of teams across the globe tasked with pursuing innovative applications of HPE technologies, and seeking out the best ways the corporation can contribute to local societies.    [FULL  STORY]

Taiwan shares open higher

Focus Taiwan
Date: 2018/11/23
By: Y.F. Low

Taipei, Nov. 23 (CNA) The Taiwan Stock Exchange’s main index opened up 15.93 points at 9,730.64 Friday on turnover of NT$728 million (US$23.56 million).
[SOURCE]

Manufacturing jobs lost, but service sector expands

TRADE ISSUES? The DGBAS said that an increase of 14,000 in employment in the service sector came as workers moved from manufacturing, which fell 1,000

Taipei Times
Date: Nov 23, 2018
By: Kao Shih-ching  /  Staff reporter

The nation last month saw its first decline in the number of manufacturing sector employees since July, when the US-China trade dispute began, but the Directorate-General of Budget, Accounting and Statistics (DGBAS) yesterday said it would take more time to determine whether trade issues are affecting the labor market.

The DGBAS’ remarks came after it reported that the unemployment rate edged down to 3.75 percent last month, the lowest in October for 18 years and a decrease of 0.11 percentage points from a month earlier.

For the first 10 months, the average unemployment rate was 3.71 percent, also the lowest in 18 years for the same period, the DGBAS said at a news conference in Taipei.

After seasonal adjustments, the unemployment gauge was 3.7 percent last month, flat from a month earlier.    [FULL  STORY]

Taiwan export orders reach all time high in October

The Ministry of Foreign Affairs cautions that while the economy remains stable, it is likely to slow next year

Taiwan News
Date: 2018/11/21
By: Duncan Deaeth, Taiwan News, Staff Writer

(Image from Pexels user David Dibert)

TAIPEI (Taiwan News) – On Nov. 20, the Ministry of Economic Affairs (MOEA) announced that foreign export orders placed in the month of October reached an all-time high over previous years, totaling US$48.99 billion.

Orders from the United States, and for ICT products also reached an all-time high last month according to the Ministry.

A ministry official noted that this has been a good year for ICT products driven by demands for new iPhones. However, the official cautioned that the industry has yet to face any major impact from the U.S.-China trade war.

In October, export orders to the U.S. totaled US$14.92 billion, which equaled 9.1 percent increase month to month, and an annual increase of 8.2 percent over 2017. Other major markets for Taiwanese products in October included China and Hong Kong (US$11.4 billion) and Europe (US$10.9 billion).    [FULL  STORY]

Yulon lowers car sales forecast

VULNERABLE: Stronger foreign competition might push domestic firms’ market share to half this year, making automakers cautious about introducing new models

Taipei Times
Date: Nov 22, 2018
By: Lisa Wang  /  Staff reporter

Yulon Motor Co (裕隆汽車) yesterday lowered its local auto sales forecast for this year to 425,000 units as consumers are cautious on purchasing luxury goods amid growing economic uncertainty due to US-China trade tensions.

The local car market is likely to enter its first annual decline since 2015 and shrink 2.2 percent from 435,000 units last year, Yulon said.

Next year, overall car sales are to remain above 400,000 units, the company added.
[FULL  STORY]

Mobiletron to expand manufacturing base in Taiwan with Taichung factory

The Taiwanese automotive parts manufacturer has invested US$48 million for a new factory in Taichung to be finished in 2020

Taiwan News 
Date: 2018/11/20
By: Duncan Deaeth, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – The Taiwanese company Mobiletron, which produces automotive electronics, announced recently that it would expand production facilities in Taiwan.

Mobiletron has reportedly invested NT$1.5 billion (US$48.6 million) into the construction of a new plant in Taichung, Taiwan which is expected to be completed by the end of 2020.

Currently about 60 percent of Mobiletron’s manufacturing in Asia is based in Taiwan, with the other 40 percent in Ningbo, China.

After the new facility begins operations, 80 percent of output will be based in Taiwan, versus 20 percent in China, reports Digitimes.    [FULL  STORY]

Stock market to close for 11 days during Lunar New Year break

Focus Taiwan
Date: 2018/11/20
By: Tien Yu-pin and Ko Lin 

Taipei, Nov. 20 (CNA) Taiwan’s public stock exchange will close for 11 days during the Lunar New Year holiday next year, the Taiwan Stock Exchange (TWSE) announced Tuesday.

The last trading day will take place Jan. 30, with Feb. 11 set for the first market session after reopening, according to the TWSE.

Based on statistics dating back to 2000, the only years in which the TWSE has had a holiday of 11 days occurred in 2002, 2007 and 2013.

According to a calendar released by the Directorate-General of Personnel Administration, the Lunar New Year holiday period will be Feb. 2-10 next year.
[SOURCE]

Export orders rise 5.1% to new record

CLOUDY: Affected by global trade tensions, nearly 60 percent of local companies expect flat sales ahead, while about 25 percent forecast a decline, an official said

Taipei Times
Date: Nov 21, 2018
By: Crystal Hsu  /  Staff reporter

Export orders last month rose 5.1 percent from a year earlier to a new high of US$48.99 billion, as global technology brands launched new-generation devices, benefiting local firms in their supply chains, the Ministry of Economic Affairs said yesterday.

The momentum is likely to continue at a similar pace or slip slightly this month, as sales of the latest smartphone models disappoint, despite the advent of the holiday season in the West, the ministry said.

Export orders, a bellwether of actual shipments one to three months later, might fall somewhere between US$48 billion and US$49 billion this month, Department of Statistics Director-General Lin Lee-jen (林麗貞) said.

“Sales of technology devices are usually strongest in the fourth quarter, as new product launches spur replacement demand,” Lin told a media briefing in Taipei.
[FULL  STORY]

Taiwan APEC envoy: Don’t be optimistic about next phase of US- China trade war

Morris Chang warned leaders that the impact of new tariffs will significantly impact global IT and telecom industry

Taiwan News
Date: 2018/11/19
By: Duncan Deaeth, Taiwan News, Staff Writer

Morris Chang with Singapore PM Lee Hsien-long at APEC forum (By Central News Agency)

TAIPEI (Taiwan News) – During a press conference on Sunday, Nov. 18, Taiwan’s envoy to the APEC Summit, Morris Chang, declared that he and his delegation had successfully completed all tasks assigned by President Tsai Ing-wen.

However, over the weekend Chang also offered some sobering observations on the ongoing U.S.-China trade war, declaring that countries should not be optimistic about the second wave of tariffs expected to be levied by the Trump administration at the beginning of the New Year.

Chang’s remarks on the issue were made at the APEC forum on Saturday, Nov. 17 following remarks of Australian Prime Minister Scott Morrison, who said he remained optimistic about the trade war, despite indications that it would not end quickly.

China Times reports that Chang, urging other leaders not to be optimistic, expressed serious concern that upcoming tariffs set to target US$267 billion worth of Chinese imports, that the global IT and communications industries and the global supply chain will be greatly affected.    [FULL  STORY]