Business and Finance

Financial supervision MOUs signed with 9 countries: FSC

Radio Taiwan International
Date: 2017-10-19

Taiwan has signed memoranda of understanding (MOU) on financial supervision cooperation with 13 supervisory agencies in nine target countries of the New Southbound policy. That’s the word from the head of the Financial Supervisory Commission (FSC), Peter Gu, on Thursday.

Gu was speaking at a Legislature meeting which also included the National Development Council and the economics ministry. The New Southbound policy aims to enhance cultural and economic ties with countries in South Asia and Southeast Asia, as well as Australia and New Zealand.

The MOUs signed so far are with Thailand, Singapore, the Philippines, Malaysia, Vietnam, Indonesia, India, New Zealand and Australia. Gu said one more country is likely to sign the same MOU by the end of the year.    [FULL  STORY]

Senior EasyCard extends scope of service for senior Taipei citizens

Taipei Mayor Ko Wen-je announced that the city will expand the scope of service provided by Senior EasyCard starting October 29

Taiwan News 
Date: 2017/10/19
By: George Liao, Taiwan News, Staff Writer

TAIPEI (Taiwan News)—Taipei Mayor Ko Wen-je (柯文哲) announced that the city will

Taipei Mayor Ko Wen-je announced that the city will expand the scope of service provided by Senior EasyCard starting October 29.

expand the scope of service provided by Senior EasyCard starting October 29, according to a press release published by the city’s Department of Information and Tourism on Tuesday.

Currently, a total of NT$480 in credits are automatically added to the Senior EasyCard every month, allowing those aged 65 years or older to enjoy free rides on public buses by using these credits. However, many of the credits are often left unused due to a lack of other usage.

The mayor said the credits will become applicable in stages to admission and use of some city facilities to encourage seniors to engage in more physical activities.

According to the city’s Department of Social Welfare (DSW), the credits can be used to access additional services and facilities starting October 29 (the Double Ninth Festival): public buses, taxi (partial subsidies only), MRT, Maokong Gondola, Shilin Official Residence (Main Hall), Taipei Metro Beitou Resort gym, Shanzhuku Swimming Pool, Huluzhou Sports Park, Bojia Sports Park, Zhoumei Sports Park’s swimming pools, as well as Mingsheng Community Center’s gym and table tennis room.
[FULL  STORY]

Lack of government guarantees concerns lawmakers

NO SAFETY NET:As Taiwan’s financial sector prepares to support the New Southbound Policy, legislators voiced concern that the nation’s banks might be left holding bad loans

Taipei Times
Date: Oct 20, 2017
By: Ted Chen  /  Staff reporter

Lawmakers at a meeting of the legislature’s Finance Committee yesterday raised concerns about the lack of government guarantees as the nation’s financial sector heeds the New Southbound Policy, as Taiwan does not have official diplomatic ties with the 18 countries targeted.

Regarding the government’s plans to arrange a US$3.5 billion credit line for an official development assistance program to aid infrastructure projects in Southeast Asia, Chinese Nationalist Party (KMT) Legislator Alex Fai ( 費鴻泰) said the government must set aside the budget to help participating lenders in the event of default, especially state-run banks that are likely to bear the brunt of the risk exposure in carrying out government policies.

In response, Directorate-General of Budget, Accounting and Statistics Minister Chu Tzer-ming (朱澤民) said that apart from NT$1.5 billion (US$49.62 million) in interest rate subsidies, no such budget has been planned for next year.    [FULL  STORY]

CPC to spend NT$2 billion on battery stations

Focus Taiwan
Date: 2017/10/17
By: Huang Ya-chuan and William Yen

Taipei, Oct. 17 (CNA) State-owned CPC Corp., Taiwan (中油) is planning to spend

CNA file photo

NT$2 billion (US$66.223 million) to build battery charging and swap stations for electric motorcycles around the island.

Huang Jen-hung (黃仁弘), CPC’s marketing business division chief, said the construction might start in the first quarter of 2018, with plans to build 1,000 charging stations within three years.

In accordance with the country’s energy transition guidelines published by the Bureau of Energy in April 2017, the future could see CPC gas stations transformed into energy supply stations, including solar panels, according to Huang.     [FULL  STORY]

ECB losses drag on Nanya Technology

UNLOADING:Although mobile phone DRAM uses 33 percent of global output, Nanya is eyeing the server market to fuel growth as the mobile phone market nears saturation

Taipei Times
Date: Oct 18, 2017
By: Lisa Wang  /  Staff reporter

Nanya Technology Corp (南亞科技), the nation’s biggest DRAM supplier, yesterday said valuation losses from its exchangeable corporate bonds (ECB) continued to eat into its bottom line last quarter, offsetting gains made by disposing of Micron Technology Inc shares.

The company booked NT$6.86 billion (US$227 million) in valuation losses for its ECB last quarter, as Nanya stock extended its run up to NT$86.3 on Sept. 30, backed by solid business prospects.

The price is much higher than the convertible price of NT$52.47 per share set in January this year.

“The valuation loss will be much lower in the fourth quarter [of this year], as about 60 percent of the bonds have been converted into shares. Besides, the [share] price has climbed to a relatively high level,” Nanya Technology president Lee Pei-ing (李培瑛) told a media briefing.    [FULL  STORY]

Tsai calls on overseas Taiwanese businesspeople to invest in Taiwan

Radio Taiwan International
Date: 2017-10-16

President Tsai Ing-wen is calling on Taiwanese businesspeople stationed abroad to

President Tsai (center) and Taiwan businesspersons. (picture from presidential office)

invest in Taiwan. She was speaking on Monday while meeting with businesspeople living in Thailand.

“To summarize, I hope you all can do two things for Taiwan,” said Tsai. “First, come back and invest in Taiwan. Second, help the local industry by making inroads into the Southeast Asian market. These [two things] will not only help boost and transform Taiwan’s economy, but will also bring opportunities for your business.”

She said the fundamentals of Taiwan’s economy have continued to improve and the government is working to make Taiwan’s investment environment more attractive.

Tsai also spoke about the government’s forward-looking infrastructure project as well as other innovations. They include biomedicine, green technology, Internet of Things (Iot), smart machinery, the defense industry, high-value agriculture, as well as the circular economy.    [FULL  STORY]

U.S. dollar closes lower on Taipei forex (update)

Focus Taiwan
Date: 2017/10/16
By: Frances Huang

Taipei, Oct. 16 (CNA) The U.S. dollar fell against the Taiwan dollar Monday, shedding NT$0.027 to close at NT$30.158, as traders were motivated by the strength of other regional currencies to pick up the Taiwan unit, dealers said.

Continued foreign institutional buying in Taiwan’s stock market added support for the Taiwan dollar, dragging down the U.S. dollar for a fourth consecutive session to its lowest level since Sept. 20, when it closed at NT$30.132.

The greenback opened at NT$30.140, and moved between NT$30.130 and NT$30.160 before the close. Turnover totaled US$581 million during the trading session.
[FULL  STORY]

Commission to probe Shopee Taiwan

LAWYER’S ALLEGATIONS:Yeh Kuang-chou said Tencent Holdings holds a 39.7% share in Shopee’s parent company, so both should be considered Chinese-invested firms

Taipei Times
Date: Oct 17, 2017
By: Lauly Li  /  Staff reporter

The Investment Commission yesterday said it would open an administrative investigation into the source of funding of Singapore-based Shopee Taiwan Co Ltd (樂購蝦皮), one of the nation’s largest e-commerce operators, and whether Chinese capital is involved.

Investment Commission Executive Secretary Emile Chang’s (張銘斌) announcement of a probe followed a morning news release from Taiwanese attorney Yeh Kuang-chou (葉光洲), who said he had reported to the Taipei District Prosecutors’ Office regarding Shopee Taiwan’s alleged violations of regulations governing Chinese investments and forgery.

Shopee Taiwan claimed to be a subsidiary of Singapore-based Sea Ltd and was registered in Taiwan as a Singaporean company with paid-in capital of NT$5 million (US$165,793.50), Yeh said.

However, Shopee Taiwan should be registered as a Chinese firm and be reviewed by the commission because Tencent Holdings Ltd (騰訊), a Chinese company, holds a 39.7 percent stake in Sea, Yeh said, citing Sea’s initial public offering (IPO) prospectus released last month.    [FULL  STORY]

Largest-ever solar energy merger in Taiwan announced

The China Post
Date: October 16, 2017
By: Jackson Chang, Chen Cehng-wei, Liao Yu-yang and Frances Huang

TAIPEI (CNA) – Three major Taiwanese solar cell makers on Monday announced a

Solar panels from Neo Solar Power Corp. are seen in this undated file photo at an unknown location in Taiwan. The company is part of three major Taiwanese solar cell makers which announced their merger for later this year during a press conference on Oct. 16, 2017. (NOWnews)

merger that will become the largest-ever deal of its kind in the Taiwan solar energy industry if it is completed.

Neo Solar Power Corp. (新日光), Gintech Energy Corp. (昱晶) and Solartech Energy Corp. (昇陽光電) held a news conference shortly after the stock market closed at 1:30 p.m. to say they have signed a letter of intent to push for a merger and create a company capitalized at NT$21.1 billion (US$701 million).

The three companies’ boards of directors have approved the deal, they said.

After the merger, the new company is expected to provide one-stop services from solar cell supply to back-end module production to strengthen its competitive edge in the global market, the companies said.    [FULL  STORY]