STATE HELP?More private investment and government efforts to ramp up innovative industries are tipped to add support to private investment and the overall economy

Taipei Times
Date: Nov 26, 2016
By: Crystal Hsu / Staff reporter

The nation’s GDP expanded 2.03 percent last quarter from a year earlier, slightly slower than estimates last month of 2.06 percent, as domestic demand single-handedly supported a mild recovery, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.

The agency raised its forecast for GDP growth to 1.35 percent for the whole of this year, an increase of 0.13 percentage points from its prediction in August, after exports fared better than expected.

“The recovery gained traction each quarter and the pace is expected to accelerate for the rest of the year,” DGBAS Minister Chu Tzer-ming (朱澤民) told a media briefing.

The 2.03 percent pickup is the fastest in six quarters after the nation’s export-focused economy emerged from three consecutive quarters of decline in the April-to-June period, the DGBAS’ quarterly report showed.    [FULL  STORY]

Taipei Times
Date: Nov 25, 2016
By: Crystal Hsu / Staff reporter

Investor confidence was down this quarter to its second-lowest level in history, as misgivings were revived over policy uncertainty and sluggish stock turnover, a JPMorgan Asset Management Taiwan Ltd (摩根資產管理) survey showed.

The confidence gauge, compiled by the local branch of the US-based company, shed 4.5 points from last quarter to 81, with the government still struggling to end disputes over the number of national holidays and other policy issues, the quarterly report found.

The gauge was below 81.8 when the global financial crisis hit in 2008.

Overall sentiment declined despite local investors gaining confidence in the global economic outlook and international crude prices, the survey found.    [FULL  STORY]

DEVELOPMENTS:The two companies have agreed to develop high-end ‘smart’ machinery that can be sold to downstream customers to improve industry efficiency

Taipei Times
Date: Nov 25, 2016
By: Kuo Chia-erh / Staff reporter, in Taichung

Machinery maker Hiwin Technologies Corp (上銀) and Siemens AG yesterday signed a memorandum of understanding, vowing to create a “smart” machinery industry.

Hiwin and Siemens are to work together to integrate machine tools and “smart” controllers in a bid to enhance the value chain of Taichung’s machine tool industry.

“Hiwin hopes to expand cooperation with Siemens further, especially on five-axis machines,” Hiwin chairman Eric Chuo (卓永財) told a news conference in Taichung.

Hiwin’s subsidiary, Luren Precision Co (陸聯精密), has developed a five-axis bevel gears machine combined with Siemens’ controllers, which would give Hiwin access to the high-end machine tools market, Chuo said.    [FULL  STORY]

SUBJECT TO APPROVAL:The deal is expected to increase Giantplus’ customer base and free CPT to focus on its high-end panel manufacturing for cars and smartphones

Taipei Times
Date: Nov 25, 2016
By: Lisa Wang / Staff reporter

Chunghwa Picture Tubes Ltd (CPT, 中華映管), a LCD panel maker, yesterday said it has agreed to sell a 35 percent share of its local subsidiary to Japan’s Ortus Technology Co Ltd for NT$2.54 billion (US$79.56 million) in a bid to boost investor’s returns on equity.

CPT owns a 53.67 percent stake in Giantplus Technology Co Ltd (凌巨), which makes small and medium-sized flat panels and touch panels used in cars, industrial devices and mobile phones.

The Taoyuan-based CPT said in a statement that it plans to sell 152.98 million Giantplus shares to Ortus at NT$16.57 per share.     [FULL  STORY]

HOLIDAY SPECIALS:The Ministry of Economic Affairs forecast that Christmas and New Year holiday demand would help boost wholesale sector revenue this month

Taipei Times
Date: Nov 24, 2016
By: Lauly Li / Staff reporter

The nation’s industrial production index climbed by 3.07 percent last month from the same period last year, driven by rising output of semiconductors, steel and petrochemical goods, the Ministry of Economic Affairs said yesterday.

The result marked the third consecutive month of annual expansion in industrial production, the ministry’s data showed.

That brought the industrial production index swinging back into positive territory for the first 10 months of this year to an increase of 0.21 percent from the same period last year.

“We are optimistic that overall industrial production this year can grow from last year,” Department of Statistics Deputy Director-General Wang Shu-chuan (王淑娟) told a news conference.    [FULL  STORY]

MOUNTAINS OF DEBT:Local banks have exposure to the airline through numerous loans and convertible bonds maturing next week, which it said could not be claimed

Taipei Times
Date: Nov 24, 2016
By: Crystal Hsu / Staff reporter

TransAsia Airways Corp’s (復興航空) creditor banks yesterday expressed their hope that the 65-year-old airline would restructure its finances instead of dissolving the company.

Financial Supervisory Commission data showed that domestic banks have NT$11.06 billion (US$346.93 million) in exposure from TransAsia, which on Tuesday announced plans to dissolve its operations to curb losses.

State-run Taiwan Cooperative Bank (TCB, 合庫銀行), lead bank of a syndicated loan to the airline, said restructuring would be a more favorable option, as lenders would not need to find buyers for collateral assets.

TransAsia owes TCB and other banks NT$4 billion from a 2011 syndicated loan of NT$5.5 billion to acquire two aircraft, TCB spokesman Davis Hu (胡光華) said.    [FULL  STORY]