Business and Finance

Trump as president? Taiwan’s central banker: ‘God save the world’

Focus Taiwan
Date: 2016/06/30
By: Frances Huang, Ho Horn-ru and S.C. Chang

Taipei, June 30 (CNA) Perng Fai-nan (彭淮南), central bank governor of Taiwan, said like 201606300028t0001every one else in Taiwan, he has no influence on American voters, but if Donald Trump should become U.S. president, “God save the world.”

At a press conference, Perng was asked to comment if the presumptive Republican Party candidate’s election would be a second black swan, following Brexit, to the world economy.

The 77-year-old economist with the title of “11 As” — because he had been named “best central banker in the world” 2005-2014 — said, “You and I do not have any influence on American voters.”

“God save the world. Heaven save the globe,” he added.     [FULL  STORY]

Manufacturing index falls on volatile equities

Taipei Times
Date: Jul 01, 2016
By: Crystal Hsu / Staff reporter

The composite index for the domestic manufacturing industry flashed the 14th “blue” signal in May with the total score falling, indicating that operating conditions deteriorated due to volatility on global equity markets, the Taiwan Institute of Economic Research (TIER, 台經院) said in a report yesterday.

The index lost 0.23 points to 9.89 from April’s 10.12, keeping the monitor signal in recession.

According to the TIER, points below the 10.5 mark indicate a recession and those below 13 suggest a slowdown, while values above the neutral 16 threshold signify an upturn.

“Uncertainty over the global economy and raw material prices dampened investment interest,” the Taipei-based institute said.     [FULL  STORY]

Dow Electronic Materials celebrates expansion of company’s Taiwan site

The China Post
Date: July 1, 2016
By: The China Post news staff

TAIPEI, Taiwan — Dow Electronic Materials, a business unit of The Dow Chemical Company

Dow Electronic Materials holds a groundbreaking ceremony at its Asia CMP Manufacturing and Technical Center, June 21. (Courtesy of Dow Electronic Materials)

Dow Electronic Materials holds a groundbreaking ceremony at its Asia CMP Manufacturing and Technical Center, June 21. (Courtesy of Dow Electronic Materials)

(NYSE:DOW), held a groundbreaking ceremony at its Asia CMP Manufacturing and Technical Center recently to mark the beginning of construction on a significant expansion project to increase production capacity for materials for chemical mechanical planarization (CMP), according to a press release from the company.

The business was honored to have many distinguished guests participate in the groundbreaking event, including Hsu Yao-chang, Magistrate of Miaoli County; Chi Hsiang Tu, Director General of Hsinchu Science Park Bureau; and Jang-Hwa Leu, Deputy Director General of the Industrial Development Bureau. Many others were also in attendance, including representatives from some of Dow’s valued customers, business leaders and employees, the company said.

“We chose a theme of ‘Building on Our Partnerships’ for this exciting celebration because our customers and local relationships are highly valued,” said Mario Stanghellini, vice president and global business director, CMP Technologies, Dow Electronic Materials. “Taiwan has provided a nurturing home for our CMP business and we look forward to continued collaboration in the years ahead.”     [FULL  STORY]

Survey: 92% of Taiwanese elementary school children save money

Taiwan News
Date: 2016-06-29
By: Sophia Yang, Taiwan News, Staff Reporter

A recent survey revealed that 92 percent of Taiwanese elementary school children have 6765674cultivated saving habits and 40 percent of them do bookkeeping. Among those with the bookkeeping habit, only 20 percent understand the rationale behind the action, saying they do so to track their spending.

To get kids into good saving habits and money management skills, the Taiwan Depository and Clearing Corporation (TDCC) has teamed up with the Financial Literacy & Education Association (FINLEA) since March to teach children at dozens of elementary schools islandwide.

At the same time, the two parties jointly rolled out a contest in which participating teams of elementary school students have to film video clips to promote good saving habits and money management skills. In these video clips, students were playing roles at a variety of settings to convey the idea that good financial habits can help them achieve their future goals.     [FULL  STORY]

Businesses oppose proposed law amendment to raise overtime pay

Focus Taiwan
Date: 2016/06/29
By: Yang Shu-min, Chen Chun-hua and Evelyn Kao

Taipei, June 29 (CNA) Seven major business groups in Taiwan have rejected a government 201606290014t0001proposal to increase overtime pay by more than 100 percent, saying it may lead to a flight of domestic manufacturers because of higher operating costs.

The government’s proposal is part of a draft bill that is seeking to implement a 40-hour work week for all employees in Taiwan and also includes regulations on wages.

The seven business groups, in a meeting Tuesday with officials from the Ministry of Economic Affairs, the Ministry of Labor (MOL) and legislators, said they could not support the overtime proposal, according to Sam Ho (何語), a standing director of the Chinese National Federation of Industries.     [FULL  STORY]

Academia Sinica slashes GDP forecast

CHINA CONTAGION:The institute was downbeat on as widely anticipated upturn in the second half, saying the nation’s economic dependence on China makes it vulnerable

Taipei Times
Date: Jun 30, 2016
By: Crystal Hsu / Staff reporter

Academia Sinica yesterday cut its GDP growth forecast for the nation this year to 0.52 percent — the lowest of all domestic research bodies — from its previous estimate of 1.74 percent, in the wake of Britain’s decision to exit the EU.

The chance of a contraction in the nation’s economy is 50 percent if things fare worse than expected, the nation’s top research institute said.

“Heightening uncertainty and tepid growth momentum are making the recovery [in Taiwan] bumpy,” research fellow Ray Chou (周雨田) said.

The nation’s economy might be weaker than last year, when GDP increased 0.65 percent, Chou said.     [FULL  STORY]

Cheaper homes are expected in next six months, says survey

The China Post
Date: June 30, 2016
By: John Liu

TAIPEI, Taiwan — Forty-six percent of people believe the next six months will be a prime time to

The entrance of an apartment building in Taipei is seen on Wednesday, June 29. Data show housing prices in Taipei have dropped 12.5 percent from their highest point. (John Liu, The China Post)

The entrance of an apartment building in Taipei is seen on Wednesday, June 29. Data show housing prices in Taipei have dropped 12.5 percent from their highest point. (John Liu, The China Post)

make a home purchase — nearly double the 24 percent who felt the same way just a quarter earlier, according to a Yung Ching Realty Group (永慶房屋) survey released Wednesday.

Anticipating that prices will fall and encouraged by the Central Bank’s credit-loosening measures, more people are prepared to foray into the market, the realty company said.

For the first time in three years, real estate is considered the top investment vehicle in the nation by 24 percent of the public, followed by 19 percent for stocks and 13 percent for gold.

Properties that yield a 3-percent return on investment were favored by those surveyed, Yung Ching General Manager Yeh Ling-chi (葉凌棋) noted.

Prices Predicted to Fall

Up to 60 percent of those surveyed believe housing prices will decrease in the second half of the year. Yung Ching noted that property owners were ready to cut their asking prices too. 64 percent of homesellers expressed willingness to sell on par or lower than transaction levels recorded in the government-maintained housing trade database.     [FULL  STORY]

Taiwan to make more use of renewable energy, natural gas: premier

Taiwan News
Date: 2016-06-28
By: Justin Su, Huang Chiao-wen and Elaine Hou, Central News Agency

From a long-term perspective, Taiwan needs to increase its use of renewable energy and natural gas power generation as it works to achieve the goal of a “nuclear-free homeland,” Premier Lin Chuan said Tuesday.

The government will propose a renewable energy development program aimed at further developing solar energy and wind power and come up with relevant follow-up plans, Lin said in response to a lawmaker’s questions during a legislative floor session on how the Democratic Progressive Party government is working to achieve its goal of making Taiwan nuclear-free by 2025.

Opposition Kuomintang Legislator Lin Wei-chou noted that nuclear power accounts for about 16 percent of the energy produced in Taiwan, adding that he is opposed to a hike in electricity prices in order to push for the nuclear power-free goal.     [FULL  STORY]

TWSE to launch dual currency ETF transactions in August

Focus Taiwan
Date: 2016/06/28
By: Tien Yu-pin and Frances Huang

Taipei, June 28 (CNA) The Taiwan Stock Exchange (TWSE) is planning to launch dual currency-201606280032t0001denominated exchange traded fund (ETF) transactions in August in a bid to provide investors more securities trading options.

In addition, the TWSE, which operates the local main board, said that dual currency ETF trading is expected to give investors more leeway to adjust their foreign currency investment portfolios.

Dual currency ETF trading is scheduled to kick off Aug. 8, the TWSE said. In an initial phase, the issuer of a Taiwan-dollar denominated ETF will be allowed to issue a beneficiary certificate denominated in Chinese yuan under the existing ETF, and the ETF and its beneficiary certificate will be exchangeable, the TWSE said.

The exchange rate of an ETF and its yuan-denominated beneficiary certificate has been set at 1:1, the TWSE said. After any exchange, investors will be allowed to sell the stock they just obtained immediately, a method which is expected to give more flexibility for investors to map out investment strategies, TWSE added.     [FULL  STORY]

Commission to appeal Taobao ruling

DE FACTO CONTROL:The head of the Investment Commission said that the company should abide by Chinese investment rules, as its Chinese investors control the firm

Taipei Times
Date: Jun 29, 2016
By: Lauly Li / Staff reporter

The Investment Commission yesterday said it plans to appeal a ruling by an administrative court in favor of Taobao Hong Kong Ltd (香港淘寶), insisting the online retailer has failed to comply with investment rules in Taiwan.

“Although Taobao registered as a foreign company, its Chinese shareholders have de facto control of the firm, in violation of Taiwan’s investment regulations,” commission Executive Secretary Emile Chang (張銘斌) said by telephone.

Taobao Hong Kong’s parent company, Alibaba Group Holdings Co (阿里巴巴), in 2008 entered Taiwan by registering as a Singaporean company, Alibaba.com Singapore E-Commerce Private Ltd, instead of as a Chinese company, according to Ministry of Economic Affairs data.     [FULL  STORY]