Business and Finance

Indonesian migrant workers paid best in Taiwan: report

Focus Taiwan
Date: 2016/04/15
By: Jay Chou and Elaine Hou

Jakarta, April 15 (CNA) Compared with other countries, Indonesian migrant

CNA file photo

CNA file photo

workers employed in Taiwan receive the highest salaries, an Indonesian labor official posted in Taiwan was quoted as saying in a report carried Friday by Indonesia’s Antara news agency.

Indonesian migrant workers in Taiwan receive about NT$17,000 (US$525.88) per month, said Devriel Sogia, head of the labor division at Indonesia’s economic and trade office in Taipei.

The salary for Indonesian migrant workers in Taiwan was about NT$15,840 in 1997, and was raised to NT$17,000 in 2015, he was quoted as saying in the report.

There are about 238,000 Indonesian migrant workers in Taiwan, and they are considered to be loyal, diligent and friendly by their Taiwanese employees, according to Devriel.     [FULL  STORY]

Taiwan office furniture firm grows global footprint

Taiwan Today
Date: April 15, 2016

Como Furniture Enterprises Co. Ltd. in central Taiwan’s Changhua County is

Bodyflex, an ergonomic office chair selling under Como Furniture Enterprises Co. Ltd. brand Koplus, is a Germany-based Red Dot Award winner in 2010. (Courtesy of CFEC)

Bodyflex, an ergonomic office chair selling under Como Furniture Enterprises Co. Ltd. brand Koplus, is a Germany-based Red Dot Award winner in 2010. (Courtesy of CFEC)

setting an example of global expansion for other local firms to follow.

The maker of office desks and chairs was an original equipment manufacturer for the world’s biggest names like IKEA from 2005 to 2008. It later blazed a new trail by establishing the Koplus brand in 2009. Como’s products are sold in more than 40 countries and territories worldwide.

Como Chairman Michael Ko said the secret of his firm’s success is an emphasis on R&D capabilities. “We’ve taken our customers’ health issues into consideration and made it a mission to produce the most comfortable chairs for work and home.”

This hard work has paid dividends. Como’s ergonomic office chair Bodyflex was awarded a Germany-based Red Dot Award in 2010, one of the highest-profile design competitions in the world.

“We also believe in a concept of living office,” Ko said. “The line between furniture for the office and home is blurring. More people may prefer working at home in the future, and we are striving to make a functional series with trendy colors suitable for all environments.”     [FULL  STORY]

CTBC to acquire RBS’ Malaysian unit

EXPANDING OVERSEAS:Upon the completion of the transaction, CTBC will be the first local financial services provider to secure a Malaysian license, a spokewoman said

Taipei Times
Date: Apr 16, 2016
By: Lisa Wang / Staff reporter

CTBC Financial Holding Co (中信金控) yesterday said it had clinched a NT$6.1 billion (US$189 million) deal to fully acquire Royal Bank of Scotland Group PLC’s (RBS) Malaysian unit, accelerating its expansion into other Asian markets.

The deal came just two weeks after CTBC announced on March 29 it was buying a 35.6 percent stake in Thailand-based LH Financial Group PLC for NT$15.4 billion.

The government has been pushing local lenders to make overseas acquisitions amid fierce competition at home. Cathay Financial Holding Co (國泰金控) in January acquired a 20 percent stake in the Philippines’ Rizal Commercial Banking Corp and a 40 percent stake in Indonesia’s PT Bank Mayapada International through its life insurance unit, Cathay Life Insurance Co (國泰人壽), while Fubon Financial Holding Co (富邦金控) purchased a 48 percent stake in South Korea’s Hyundai Life Insurance Co in December last year.

The latest investment by CTBC makes the company the first local financial services provider to expand to Malaysia, the company said.     [FULL  STORY]

IMAX Corp. (IMAX) Inks Deal for Two Theaters in Taiwan

Street Insider
Date: April 14, 2016

IMAX Corporation (NYSE: IMAX), IMAX China Holding Inc., and IN89 Digital Cinemax Co. Ltd. (IN89), a leading exhibitor in Taiwan, announced an agreement for two IMAX theatres. Both theatres will be added to new construction projects located in the Ji’an Township of the Hualien county and in the city of Jiayi. The agreement brings to 15 the total number of IMAX theatres in Taiwan.

“We believe IMAX’s world-renowned cinema technology coupled with its film slate of the biggest Chinese and Hollywood blockbusters will support our expansion efforts and help increase our market share,” said Mr. Ben Cai, CEO of IN89 Digital Cinemax Co. Ltd. “With IMAX, we are delivering the best entertainment experience possible to our guests and we look forward to launching an exciting new chapter of immersive movie-going for audiences in Hualien and Jiaiyi.”

“We are delighted to welcome IN89 as our newest Asia Pacific partner and together look forward to seizing the growth opportunities that exist in Taiwan, where our per screen average (PSA) of over $1.6 million significantly surpasses our global PSA of $1.1 million,” said Richard L. Gelfond, CEO IMAX. “Exhibitors worldwide recognize that IMAX delivers an event-based experience for tentpole films like nothing else can. Given this and the enthusiasm among exhibitors around our 2016 and 2017 film slates, our theater deal activity continues to be robust.”     [FULL  STORY]

Steel stocks continue to rise; buying in broader market limited

Taiwan News
Date: 2016-04-14
By: By Frances Huang, Central News Agency

Taipei, April 14 (CNA) The steel sector in Taiwan continued its upward momentum Thursday morning on the back of a recovery in product prices, serving as an anchor to the movement of the broader market, dealers said.

However, buying in the broader market appeared limited, moving off an early high, as interest in the bellwether electronics sector faded, in particular among heavyweights such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC) and smartphone camera lens supplier Largan Precision Co., since investors pocketed gains built up a session earlier, the dealers said.

As of 11:55 a.m. the steel sector had gained 1.94 percent to reach 89.81 points, while the weighted index on the Taiwan Stock Exchange had risen 0.17 percent to 8,662.92 points off an early high of 8,719.15, on turnover of NT$55.40 billion (US$1.71 billion).     [FULL  STORY]

Largan cautious about Q2 sales: CEO

Focus Taiwan
Date: 2016/04/14
By: Han Ting-ting and Frances Huang

Taipei, April 14 (CNA) Adam Lin (林恩平), chief executive officer of Taiwan-

(CNA file photo)

(CNA file photo)

based smartphone camera lens maker Largan Precision Co. (大立光), said Thursday that the company was cautious about its second-quarter sales as it continued to be affected by the slow season.

Speaking at an investor conference, Lin forecast that Largan’s consolidated sales for April and May will change little from March, when it posted NT$3.02 billion (US$93.21 million).

In the months of May and June, advanced camera lens will weigh more heavily in the company’s portfolio as some clients are expected to ship their latest smartphone models then, he said.

In the first quarter, Largan posted consolidated sales of NT$8.27 billion, down 46 percent from the previous quarter and 22 percent from a year earlier.     [FULL  STORY]

TSMC Q2 revenue likely to fall short

PRODUCTION PLAN:An executive said the firm’s next-generation integrated fan-out packaging technology, likely to be used in iPhones, is to start production this quarter

Taipei Times
Date: Apr 15, 2016
By: Lisa Wang / Staff reporter

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday forecast single-digit percentage growth in revenue this quarter — falling short of market expectations — after posting the lowest net profit in about one-and-half years last quarter.

TSMC, which supplies chips for Apple Inc’s iPhone series, expects growth momentum to magnify from next quarter as customers roll out new products, which are likely to help stimulate demand for its technologies used in high-end smartphones.

Revenue for the second quarter is expected to grow 6 to 7 percent to between NT$215 billion and NT$218 billion (US$6.63 billion and US$6.72 billion) this quarter, from NT$203.5 billion in the first quarter, the chipmaker said.

The growth rate is slower than the 9 percent sequential increase estimated by Credit Suisse Group AG analyst Randy Abrams and 13 percent growth predicted by HSBC Group PLC analyst Steven Pelayo.     [FULL  STORY]

Contract chip maker UMC falls to No. 3 spot; TSMC retains No. 1 title

Taiwan News
Date: 2016-04-13
By: Central News Agency

Taiwan-based United Microelectronics Corp.’s (UMC) ranking as a major supplier in the global wafer foundry market fell one notch to third in 2015 from a year earlier after it suffered a fall in revenue that year, according to information technology market advisory firm Gartner Inc.

However, Taiwan Semiconductor Manufacturing Co. (TSMC), another Taiwanese chip maker, retained its position as largest worldwide supplier as the firm outperformed the global wafer foundry industry in 2015, Gartner said.

In a research report posted on its website on Tuesday, Gartner said that UMC was replaced by U.S.-based GlobalFoundries Inc. to fall to the No. 3 spot with the Taiwanese firm having posted US$4.56 billion in sales, down 1.3 percent from a year earlier.

The fall in revenue left UMC with a 9.3 percent share of the world’s contract chip market, while GlobalFoundries grabbed a 9.6 percent global market share, Gartner said. GlobalFoundries posted US$4.67 billion in sales in 2015, up 6.2 percent from a year earlier, according to the advisory firm.     [FULL  STORY]

Taiwan’s tax revenue declines in Q1

Focus Taiwan
Date: 2016/04/13
By: Chiu Po-sheng and Romulo Huang

Taipei, April 13 (CNA) Taiwan’s net tax revenue totaled NT$345.5 billion 201604130031t0001(US$10.67 billion) in the first quarter of this year, representing a decline of 2.2 percent or NT$7.9 billion from the same period last year, the Ministry of Finance said Wednesday.

The cumulative total net tax revenue for the first three months of 2016 accounted for only 95.4 percent of the distributed budget, falling short by NT$16.6 billion, the ministry said.

In the breakdown, income tax revenue from business enterprises suffered the biggest year-on-year decline of 68.6 percent, falling by NT$7.2 billion, in the first quarter of this year.

Land value increment tax revenue dropped 35.9 percent or NT$9.4 billion, while the individual income tax revenue decreased by 1.7 percent or NT$1.3 billion.     [FULL  STORY]

Epistar expects flat revenue: chairman

POSITIVE OUTLOOK:The company’s chairman said that he is optimistic about growth momentum of its new automotive LED applications for the European market this year

Taipei Times
Date: Apr 14, 2016
By: Lauly Li / Staff reporter

Epistar Corp (晶電), the nation’s largest LED chipmaker, expects revenue to be flat this year, but aims to improve its profitability through continued restructuring measures, chairman Lee Biing-jye (李秉傑) said yesterday.

“We would maintain our decision to freeze 25 percent of our total production capacity throughout this year and adjust Epistar’s product portfolio to improve our profitability,” Lee told reporters on the sidelines of the Taiwan International Lighting Show at Nangang Exhibition Hall in Taipei.

Due to the falling average selling price (ASP) of LED lighting products and sluggish demand for backlight units used in TVs, Epistar reported a net loss of NT$3.01 billion (US$93.04 million) last year, plummeting significantly from NT$1.81 billion made a year earlier.

That represented losses per share of NT$2.81 for last year, compared with the previous year’s earnings per share of NT$1.98.

As part of its restructuring plan, Epistar last month announced a plan to reduce its production capacity by suspending the operations of two of its plants in Taiwan and China.     [FULL  STORY]