Focus Taiwan
Date: 2018/08/16
By: Lee Hsin-Yin 

Taipei, Aug. 16 (CNA) Progress was made in the second round of negotiations between EVA Airways and its pilots on Thursday, Taoyuan City’s Department of Labor said after intervening in the dispute to avoid a strike.

The meeting was a clear improvement on the first talks last week, when no consensus was reached, with both sides starting to resolve their differences, the department said.

Union official Chen Po-chien (陳柏謙) told CNA the airline demonstrated some flexibility on work hours and the length of a pilot’s first contract.

EVA Air pilots have asked the carrier to beef up crews on long haul flights and give them more time to rest before and after flights.    [FULL  STORY]

LONG-TERM THINKING: A manager at Cushman & Wakefield suggested that buyers could wait until 2031 and tear down the Living Mall in favor of an urban redevelopment project

Taipei Times
Date: Aug 17, 2018
By: Crystal Hsu  /  Staff reporter

(US$1.23 billion) for its gigantic central Taipei retail complex, also branded

“Living Mall,” targeting buyers at home and abroad, auctioneers said yesterday.

It is the largest private property available for sale in recent decades as most high-profile transactions, including Taipei 101, Regent Taipei (台北晶華酒店), Taipei Nan Shan Plaza (台北南山廣場) and Taipei Garden Hotel (台北花園大酒店) are on leasehold contracts for 50 to 70 years, Cushman & Wakefield Inc told a tender briefing.

“It is not the best timing to sell properties these days, so I recommended a price concession and the owner accepted it,” Cushman & Wakefield Taiwan general manager Billy Yen (顏炳立) said, adding that the property could sell at a much higher price in a boom market.    [FULL  STORY]

MOEA will continue to monitor developments in the U.S.-Turkish dispute

Taiwan News
Date: 2018/08/15
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – The drop of the Turkish lira following sanctions by the United States has caused global markets to slide, but so far, no chain reaction has appeared affecting other countries, the Ministry of Economic Affairs (MOEA) said Wednesday.

Some observers made comparisons to the 1997 Asian regional financial crisis, worrying that Turkey’s problems might trigger a similar international wave of financial and economic emergencies.

However, Turkey’s problems were its own, and so far, there were no signs that a chain reaction affecting other enemies was likely, said Kung Ming-hsin (龔明鑫), deputy economics minister.

There was no need to be nervous, though the MOEA would continue to monitor the evolution of U.S.-Turkish relations, the official said, according to the Central News Agency.    [FULL  STORY]

Focus Taiwan
Date: 2018/08/15
By: Liao Yu-yang and Evelyn Kao

Taipei, Aug. 15 (CNA) Taiwan’s food and beverage industry reported record revenues of NT$235.5 billion (US$7.63 billion) in the first six months of 2018, up 4.7 percent year-on-year and marking the largest growth in seven years, thanks to an increase in social media and smartphone usage, according to the Ministry of Economic Affairs (MOEA).

MOEA statistics released Wednesday show that in 2017, 54.1 percent of the food and beverage operators in Taiwan used social media such as Line to boost their sales, with 23.3 percent offering online reservation or ordering services. In addition, 17.2 percent provided mobile payment options, compared with 10.5 percent in 2016.

Between 2012 and 2017, chain store brands in the food and beverage sector increased from 624 to 970 in number, with restaurant chains accounting for the biggest increase of 201, according to data provided by the Association of Chain and Franchise Promotion, Taiwan.
[FULL  STORY]

Taipei Times
Date: Aug 16, 2018 
By: Ted Chen  /  Staff reporter

A number of smaller lenders are expected to face an additional round of

mortgage stress tests and other precautionary measures as their default rates creep up, Financial Supervisory Commission Chairman Wellington Koo (顧立雄) said yesterday.

While banks are required to conduct routine stress tests, several smaller lenders would be required to show that they have the capacity to absorb rising mortgage defaults, Koo said on the sidelines of a forum on corporate governance in Taipei.

Koo made the comment after a number of credit-unions-turned-banks in May logged mortgage default rates exceeding 1 percent.

The commission is to draft uniform parameters for the upcoming mortgage stress test, Koo said, adding that failed lenders would be barred from taking on more home loans and would see their loan loss provisions raised.
[FULL  STORY]

Acer, Asus, Avantech, and Synnex Technology may be facing losses in the country if the situation does not stabilize soon

Taiwan News
Date: 2018/08/14
By: Duncan DeAeth, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – The Turkish lira continues to rapidly depreciate in value against the U.S. dollar after the Trump administration announced it was doubling tariffs on Turkish steel and aluminum last week.

As Turkey faces a serious financial meltdown, there are several Taiwanese businesses with a significant presence in the Turkish market, that are taking measures to mitigate expected losses in response to the new sanctions and tense political environment developing in Turkey.

Liberty Times that four major Taiwanese companies are likely to be on the losing end of investments and ventures in Turkey if the U.S. sanctions are implemented and maintained for any significant amount of time.

Avantech (研華), Synnex Technology (聯強), Acer (宏碁), and Asus (華碩) all reportedly have productions facilities in Turkey, and will certainly be impacted by the trade spat and the crash of the lira.    [FULL  STORY]

Focus Taiwan
Date: 2018/08/14
By: Frances Huang

Taipei, Aug. 14 (CNA) Shares in Taiwan staged a technical rebound Tuesday, pushing the local main board above the 10,800 point mark by the end of trading, as large cap stocks mainly bounced back after the slump seen the previous session, dealers said.

Although share prices recovered, turnover remained moderate with market sentiment reflecting concerns that the weakness of the Turkish lira, could pave the way for more turbulence on the global market, they said.

The weighted index on the Taiwan Stock Exchange (TWSE) or the Taiex ended up 75.31 points, or 0.70 percent, at 10,824.23, after moving between 10,755.53 and 10,829.85, on turnover of NT$135.60 billion (US$4.40 billion).    [FULL  STORY]

Reuters reports that Mega International Commercial Bank will terminate a payment clearing mechanism it has with Iran after November

Taiwan News
Date: 2018/08/13
By: Duncan DeAeth, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – In the wake of the U.S. backing out of the Iran nuclear deal, and calling for re-imposed sanctions, a major Taiwanese bank is taking the initiative to sever financial ties with the Central Asian Islamic Republic.

According to reports, Taiwan’s Mega International Commercial Bank, or Mega Bank (兆豐銀), will terminate a “payment clearing mechanism” established between Taiwan and Iran after November of this year.

Out of concern for repercussions following the re-imposition of sanctions on Iran by the Trump administration, a representative of the bank was quoted in the Reuters report as saying the bank’s “business with Iran is too sensitive, and we should no longer get involved in it.”

A February report from Bloomberg notes that after the U.S. began heavily penalizing European banks that were assisting in Iran’s banking and energy sectors, that Iran began to utilizing financial partnerships in Asia as their primary avenue to access U.S. dollars.    [FULL  STORY]

Focus Taiwan
Date: 2018/08/13
By: Liao Yu-yang and Evelyn Kao

Taipei, Aug. 13 (CNA) The Ministry of Economic Affairs (MOEA) plans to

add money to its budget for electric scooter subsidies to encourage the replacement of gasoline-powered scooters and promote cleaner air, the MOEA’s Industrial Development Bureau (IDB) said Monday.

Only NT$20 million (US$660,000) of the NT$440 million budgeted to subsidize electric scooter purchases this year is left, the IDB said, but the funding will be supplemented by funds diverted from subsidies given to electric vehicle makers to set up battery charging stations.

The MOEA will also draw on unused budgets to beef up the subsidy budget, the IDB said, though it was short on details on how much would be available and what other programs would be affected.    [FULL  STORY]