Business and Finance

Formosa Plastics Group to raise wages by 4.52%

Focus Taiwan
Date: 2015/07/01
By: Pan Chi-i and Frances Huang

Taipei, July 1 (CNA) Formosa Plastics Group (FPG, 台塑集團), one of Taiwan’s leading 201507010022t0001petrochemical conglomerates, said Wednesday that the group has decided to raise wages for its employees by about 4.52 percent following negotiations with its labor union.

The hike includes a 3.5 percent raise in monthly salaries and NT$6,000 (US$193) in allowances for the entire year, which represents a 4.52 percent increase in monthly pay for employees.

Before the decision, the union had demanded a 4 percent raise in wages and a NT$10,000 increase in allowances. FPG President Wang Wen-yuan (王文淵) finalized the increase.

The 4.52 percent hike was higher than a 3.55 percent rise seen a year earlier, and also the highest since 2011, when the group boosted wages by 5.26 percent.     [FULL  STORY]

HTC said to make smartphones in India via contract maker

Want China Times
Date: 2015-07-01
By:  CNA

Taiwan’s HTC has signed an agreement with contract manufacturer Global Device

A model poses with an HTC One M9 at a press conference in Tainan, March 12. (File photo/CNA)

A model poses with an HTC One M9 at a press conference in Tainan, March 12. (File photo/CNA)

Network to produce entry-level and mid-range smartphones in India, according to Indian telecom news site ET Telecom.

By finalizing its “Make in India” initiative with Global Device Network, HTC will become the second major global smartphone maker to produce handsets in the country after Samsung, ET Telecom reported on Monday.

The contractor has already begun assembling HTC phones on a trial basis and commercial production is expected to start from mid-July to supply HTC’s markets in India, Africa and the Middle East, the report said, citing three senior industry executives.

The HTC smartphones made in India will be the Desire series, priced between 10,000-25,000 Indian rupees (US$160-$390). The Taiwanese company has no plans to assemble its flagship One series models in India, the report said.     [FULL  STORY]

Energy operating reserve at 10-year low

CUTBACKS:Bureau of Energy Director Lee Chun-li said that, in the event of power rationing, industrial users with large electricity consumption would be targeted first

Taipei Times
Date: Jul 02, 2015
By: Lauly Li  /  Staff reporter

Taiwan’s energy operating reserve margin yesterday dropped to a 10-year low of 2.46 percent due to a breakdown of four power generation units, state-run Taiwan Power Co (Taipower, 台電) said.

The operating reserve plunged from an estimated 1.58 million kilowatt-hours (kWh) to only 860,000kWh, prompting speculation about the possibility of a power shortages in the coming days or weeks.     [FULL  STORY]

Taiwan shares rebound by 86.92 points

Focus Taiwan
Date: 2015/06/30
By: Tien Yu-bin and Ted Chen

Taipei, June 30 (CNA) Amid growing concern over the Greece debt crisis, Taiwan shares 201506300018t0001on Tuesday gained 86.92 points to close at 9,323.02 points.

The market closed 1 point above the 52-week average, on turnover of NT$90.87. billion.

Despite misgivings, investors saw the tumble of the weighted index to its 52-week average as an opportunity to buy low.

Analysts said a major rally would require a daily turnover of more than NT$100 billion, and that the index is expected to continue to fluctuate between between 9,170 and 9,350 points in the short term.     [FULL  STORY]

Property transactions fall 69%

RESULTS OF TAXATION?Savills Taiwan said that self-occupancy needs drove sales during the second quarter, adding that increased taxes have squeezed rental yields

Taipei Timesa
Date: Jul 01, 2015
By: Crystal Hsu  /  Staff reporter

Commercial property transactions totaled NT$9.1 billion (US$292.9 million) in the second quarter, falling 69 percent from a year earlier and 24 percent from the first quarter, as a new property tax weighed on the market, brokers said yesterday.

“The property market apparently has yet to hit bottom, although the new property tax has settled,” said Gordon Kao (高銘頂), general manager at Savills Taiwan Ltd, the local branch of a British property consultancy.

Kao voiced concern that the local commercial property market could further deteriorate with the impending imposition of new income taxes on property gains starting next year.     [FULL  STORY]

Nearly half of Taiwan’s export orders made in China, Hong Kong

Focus Taiwan
Date: 2015/06/30
By: Huang Chiao-wen and Elizabeth Hsu

Taipei, June 30 (CNA) Taiwan’s dependence on China as a production base has grown in 201506300019t0001recent years, with the percentage of Taiwan’s export orders made in China or Hong Kong rising nearly 4 percentage points over the past five years, according to the latest statistics.

A total of 47.1 percent of export orders received in Taiwan were produced in China or Hong Kong in 2014, up from 43.8 percent in 2010, the Ministry of Economic Affairs said in its annual survey of overseas production of export orders released Tuesday.

The figure has remained relatively steady since 2011, however, ranging from a low of 46.8 percent in 2011 to a high of 47.4 percent in 2012.     [FULL  STORY]

Consumer confidence in Taiwan falls in June

Focus Taiwn
Date: 2015/06/29
By: Chen Cheng-wei and Y.F. Low

Taipei, June 29 (CNA) Taiwan’s consumer confidence index (CCI) fell in June, according to a survey released Monday by National Central University.

The survey indicated that the CCI for June dropped 1.06 points from a month earlier to 90.58, although there was an upward trend in four of its six sub-indices, which reflect how consumers feel about aspects of Taiwan’s economy over the following six months.

The four rising indices were consumer prices, the local job market, timing of durable goods purchases, and family finance, while the business climate and the timing for equity market investment fell from the previous month.     [FULL  STORY]

TAIEX plunges on Athens’ debt woes

LITTLE IMPACT?FSC Chairman William Tseng sought to reassure investors by saying that local banks, insurers and mutual fund houses have little exposure to Greece

Taipei Times
Date: Jun 30, 2015
By: Crystal Hsu  /  Staff reporter

The TAIEX tumbled 2.39 percent, or 221.47 points, to 9,236.1 yesterday, as jitters over

A man looks at a display showing stock prices in Taipei yesterday. Affected by news from Greece, the TAIEX plummeted 221.47 points to 9,236.1 yesterday. Photo: CNA

A man looks at a display showing stock prices in Taipei yesterday. Affected by news from Greece, the TAIEX plummeted 221.47 points to 9,236.1 yesterday. Photo: CNA

Greece’s debt problem swept the local bourse, dragging down prices across the board.

The weighted index fell by the fastest pace this year to close below its annual moving average and could head further south after Athens imposed capital controls and called for a referendum on Sunday.

Turnover was active at NT$93.33 billion (US$2.99 billion), but remained below NT$100 billion, suggesting more selling pressure may have to be digested, analysts said.     [FULL  STORY]

Further delays in Taiwan-China trade deal could affect Taiwan’s future: Officials

Progress of China’s preferential trade deal with Taiwan has been held up after its service trade pact was stalled by the island’s divided parliament. Officials warn that further delays could have a devastating effect on Taiwan’s economic future.

Channel News Asia
By: Victoria Jen, Channel NewsAsia’s Taiwan Correspondent
Date: 29 Jun 2015

TAIPEI: Monday (Jun 29) marks the fifth anniversary of the signing of the Economic

A general view shows cargo containers at Taiwan's northern Taipei Port which lies south of the Tamshui River, in the Bali district of New Taipei City. TAIPEI: Monday marks the fifth anniversary of the signing of the Economic Cooperation Framework Agreement between China and Taiwan that aims to reduce tariffs and commercial barriers between the two sides.

A general view shows cargo containers at Taiwan’s northern Taipei Port which lies south of the Tamshui River, in the Bali district of New Taipei City. TAIPEI: Monday marks the fifth anniversary of the signing of the Economic Cooperation Framework Agreement between China and Taiwan that aims to reduce tariffs and commercial barriers between the two sides.

Cooperation Framework Agreement (ECFA) between China and Taiwan that aims to reduce tariffs and commercial barriers between the two sides.

However, progress of China’s preferential trade deal with Taiwan has been held up after its service trade pact was stalled by the island’s divided parliament. Officials warn that further delays could have a devastating effect on Taiwan’s economic future.

The signing of ECFA in 2010 was a historical moment for cross-strait development and has bolstered cross-strait trade. For instance, bicycle shipments to China soared more than tenfold since 2010, to nearly 140,000 units last year.

Other duty free products under the initial list, which covers 6% of the island’s export items, have also enjoyed greater growth in the mainland.     [FULL  STORY]

What Taiwan can bring to China’s e-commerce game

Want China Times
Editorial
Date: 2015-06-29

China has set its sights on the fast growing e-commerce market, coming up with

Entrepreneurs attend the Global Conference for Cross-border E-commerce in Zhejiang, May 29. (File photo/Xinhua)

Entrepreneurs attend the Global Conference for Cross-border E-commerce in Zhejiang, May 29. (File photo/Xinhua)

measures to push for integration between foreign trade and the new business model to sell more products worldwide.

Taiwan should follow in China’s footsteps by helping its small and medium enterprises and young entrepreneurs to seize the opportunities offered by e-commerce that have benefited millions of small vendors on the other side of the strait.

Taiwan helped China become the world’s factory. Now China is becoming the world’s retail store and shopping online is the norm for millions of people. According to research by Morgan Stanley, global e-commerce sales accounted for only 4% of the world’s total retail revenue in 2008, but the percentage rose to 6.5% in 2012. It forecast that the figure is likely to overtake 9% in 2016.

A Nielsen report said sales generated through cross-border e-commerce could rise by approximately 300% from 2015 to 2018, indicating that the pace of the e-commerce growth will be very rapid.     [FULL  STORY]