Business and Finance

On wages, business leaders urge respect for market mechanism

Focus Taiwan
Date: 2018/05/14
By: Pan Tzu-yu and Elizabeth Hsu

Taipei, May 14 (CNA) The leaders of two major Taiwanese business associations urged the government to respect the market mechanism and the management autonomy of companies as it tries to promote wage growth.

“I believe (wages) will rise naturally if the government focuses more on economic stimulus plans and tries harder to devise good (economic) policies,” said General Chamber of Commerce Chairman Lai Cheng-yi (賴正鎰) on Monday.

He was responding to strategies proposed by the Cabinet earlier in the day to fix the country’s low-wage problem.

The strategies, aimed at increasing the wages of low-paid workers, included hiking the minimum pay for government employees to NT$30,000 (US$1,000) a month, encouraging or pressing private firms to follow suit, and raising the hourly minimum wage from NT$140 to NT$150.    [FULL  STORY]

Fubon net profit up on investment, interest income

RESILIENT: Fubon Life reported an annual increase of 22 percent in investment income, even though the New Taiwan dollar’s appreciation eroded profitability

Taipei Times
Date: May 15, 2018
By: Crystal Hsu  /  Staff reporter

Fubon Financial Holding Co (富邦金控) posted NT$16.5 billion (US$554.77 million) in net profit for last quarter, soaring 66.5 percent from the same period last year, thanks to fast-growing investment and interest income at its life insurance and banking units.

The result translated into earnings per share of NT$1.61, helping the firm’s total assets to gain 9.6 percent to a record NT$6.97 trillion and secure second place among its peers next only to Cathay Financial Holding Co (國泰金).

Fubon Financial chairman Richard Tsai (蔡明興) attributed the improvement to steady operations at main subsidiaries Fubon Life Insurance Co (富邦人壽) and Taipei Fubon Commercial Bank (台北富邦銀行).

Fubon Life reported NT$31.9 billion in investment income, a 22 percent increase from a year earlier, even though the New Taiwan dollar’s appreciation eroded profitability, company data showed.    [FULL  STORY]

Macquarie Group accelerates into Taiwan’s self-driving bus, car market

Financial Review
Date: May 13, 2018
By: Joyce Moullakis

Macquarie Group is wading into the driverless bus and car industry in Taiwan, as part

Macquarie has signed an MOU to explore opportunities in Taiwan’s driverless vehicle industry. Tony Moore

of a broader push into renewable energy and other investments in the Asia Pacific region.

Macquarie’s advisory arm earlier this month signed a non-binding memorandum of understanding (MOU) with Taiwan’s smart city and autonomous vehicle group 7StarLake, to weigh opportunities in the self-driving bus and car market.

Sydney-based Macquarie is said to be seeking to provide financial and technical assistance to 7StarLake after Taipei City’s first self-driving vehicle test site was established in March.

7StarLake’s president Martin Ting wants to get driverless buses on Taiwan’s streets if they are limited to their own lane. He was this month quoted in the local press saying the company would work with Macquarie on the feasibility of putting solar panels on buses to allow them to be powered by electricity.    [FULL  STORY]

Taoyuan Metro Corporation offers 120-day periodic ticket offering half-price rides starting June

Formosa News
Date: 2018/05/13

In a boon for commuters who take the Airport MRT, the Taoyuan Metro Corporation is celebrating the line’s first anniversary by offering a 120-day pass at a 50 percent discount starting in June. Ticket-holders only need to travel to and from the same stations each time and then they can enjoy unlimited rides at half price for four months.

The Taoyuan Metro Corporation has announced that starting in June it will promote a 120 day periodic ticket offering half-price rides.     [FULL  STORY]

 

Chunghwa Telecom could be fined for mobile package chaos

Focus Taiwan
Date: 2018/05/13
By: Liao Yu-yang and Elizabeth Hsu

Taipei, May 13 (CNA) Chunghwa Telecom Co. (中華電信), Taiwan’s largest telecom

CNA file photo

company, could be punished for failing to address “chaos” in society that the firm triggered last week with its flash mob-style launch of a NT$499 (US$16.75) monthly 4G plan for unlimited data transmission.

The telecom service provider has sparked frenzied buying since it kicked off a week-long sale of the special package Wednesday.

The promotional move then drew Taiwan Mobile Co. (台灣大哥大) and Far EasTone Telecommunications Co. (遠傳電信), the second- and third- largest telecom firms in the country, to follow suit by introducing almost identical plans for fear of losing subscribers.

The NT$499 flat-rate package was such a big incentive that consumers crowded all outlets of the companies across the country, forcing front-desk employees to work overtime to process a sudden surge of massive orders.    [FULL  STORY]

Phison quarterly net profit falls 31%

SEASONAL WEAKNESS: Phison’s margin was not bad given the magnitude of the fall in NAND prices, an analyst said. The company said it expects demand to recover this quarter

Taipei Times
Date: May 14, 2018
By: Lisa Wang  /  Staff reporter

Phison Electronics Corp (群聯電子), which supplies NAND flash memory controllers and modules, reported that last quarter’s net profit plunged 31 percent year-on-year due to seasonal weakness and lower prices for its products.

Net profit slumped to NT$882.3 million (US$29.63 million) from NT$1.28 billion during the same period a year earlier, marking the lowest level in 13 quarters, while earnings per share fell to NT$4.48 from NT$6.5 a year earlier, the company said on Friday last week.

On a quarterly basis, net profit contracted 31 percent from NT$1.29 billion, or NT$6.54 per share.

Gross margin for last quarter fell to 18.9 percent from 30.7 percent for the same period a year earlier, while operating margin dropped to 11.2 percent from 17.7 percent.
[FULL  STORY]

Taiwan’s manufacturers enjoy 13.4 percent growth in profits

Taiwan News  
Date: 2018/05/12
By:  Central News Agency

TAIPEI (CNA) – Taiwan’s manufacturers listed on the local equity market posted NT$1.5

Profits are up at manufacturers. (By Central News Agency)

trillion (US$50.34 billion) in combined net profit in 2017, up 13.4 percent from a year earlier, with Taiwan Semiconductor Manufacturing Co., (TSMC), the world’s largest contract chipmaker, leading the pack, according to official figures.

The growth in profit was the highest in three years as the local economy was on the path to recovery, according to the Ministry of Economic Affairs (MOEA).
TSMC ranked as the most profitable firm in 2017 among the manufacturers listed on the local main board and the over-the-counter market.

In addition, the chipmaker also served as the top manufacturer listed on the local equity market to pour funds in research and development as well as in fixed asset investments last year.    [FULL  STORY]

Mechanism to moderate fuel price increases to take effect (update)

Focus Taiwan
Date: 2018/05/12
By: Liao Yu-yang, Frances Huang and Romulo Huang

Taipei, May 12 (CNA) A mechanism designed by the Ministry of Economic Affairs

CNA file photo

(MOEA) to moderate domestic fuel price increases is scheduled to take effect next week, according to the ministry.

The mechanism is aimed at reducing the financial burden on consumers by stabilizing fuel prices at a time when international crude oil prices have been on the rise amid geopolitical tension, in particular after U.S. President Donald Trump announced U.S. withdrawal from a nuclear agreement with Iran.

The withdrawal from the 2015 international treaty is expected to lead Washington to re-impose economic sanctions on Iran, which could cut the global crude supply and in turn boost international crude prices significantly.    [FULL  STORY]

Higher wages entice Taiwanese overseas: job bank

Radio Taiwan International
Date: 2018-05-11

High wages is the main reason for most Taiwanese nationals to work abroad. That’s according to the latest survey results from 1111 Job Bank.

The government’s latest figures show that around 728,000 Taiwanese nationals worked abroad in 2016, that is 4,000 more than the previous year. The job bank’s survey shows that more than 60% of these workers go abroad for higher wages, which come in at 33% high on average than comparable positions in Taiwan.

The survey also showed that the other 40% of Taiwanese who work abroad do so to seek a better living environment or new challenges.

The survey also shows that roughly 80% of those who work abroad worry about not finding the right position or the right pay if they return to Taiwan.    [FULL  STORY]

Powerchip plans NT$300 billion wafer plant in northern Taiwan

Focus Taiwan
Date: 2018/05/11
By: Chang Chien-chung and Frances Huang

Taipei, May 11 (CNA) Powerchip Technology Corp., a contract semiconductor maker

Powerchip founder Frank Huang

from Taiwan, is planning to invest almost NT$300 billion (US$10.08 billion) to build a wafer foundry in northern Taiwan.

Powerchip founder Frank Huang (黃崇仁) said at a news conference on Thursday that the company aims to build a 12-inch wafer plant on a 11.04 hectare plot of land in Tongluo Township, Miaoli County, with construction scheduled to start in 2020.

Huang said the planned 12-inch wafer plant is expected to have a full capacity of 100,000 units a month.

Total investment in the new 12-inch wafer plant will be NT$278 billion in four phases, he added.    [FULL  STORY]