Business and Finance

Monitor ‘yellow-blue’ for 10th month

‘SLUGGISH’:Exports fell 1.5 percent last month, but might recover this month on the back of the peak season for technology products, the finance ministry said

Taipei Times
Date: Nov 28, 2019
By: Crystal Hsu  /  Staff reporter

The government’s business climate monitor last month signaled “yellow-blue” for the 10th consecutive month as exports fell and business confidence waned, suggesting an extended soft patch without an evident sign of deterioration, the National Development Council (NDC) said yesterday.

“The latest data show that the economy, while stable, is not strong enough to shake off sluggish growth,” NDC research director Wu Ming-huei (吳明蕙) said, but added that there were not any signs of a downturn either.

The council uses a five-color system to depict the state of the economy, with “green” indicating steady growth, “red” suggesting overheating and “blue” signaling a recession. Dual colors indicate a transition.

Exports, which have a heavy weighting in GDP makeup, declined 1.5 percent last month, but might recover modestly this month on the back of the peak season for critical components used in consumer electronics and technology products, the Ministry of Finance said earlier this month.
[FULL  STORY]

Intense competition in Taiwan’s banking sector expected next year: FSC chairman

With internet-only banks hitting the market, plural payment environments will be created

Taiwan News
Date: 2019/11/26
By: George Liao, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — Financial Supervisory Commission Chairman Wellington Koo (顧立雄)

Financial Supervisory Commission Chairman Wellington Koo (CNA photo)

said on Tuesday (Nov. 26) that competition in the banking sector will grow more intense next year when internet-only banks hit the market, CNA reported.

Koo said the commission has amended the "Rules Governing the Administration of Electronic Payment Business" to promote electronic payments and establish interbank payment platforms. The amendment draft will be sent to the Legislative Yuan in February 2020, CNA reported.

With internet-only banks hitting the market at about the same time, plural payment environments will be created. This will create intense competition for traditional banks’ digital financial services, Koo added.

He went on to say that consumer finance will be particularly competitive, which is not the key profit driver for traditional banks. Therefore, they shouldn’t be too worried about losing ground.
[FULL  STORY]

Forum touts Philippines as Taiwan’s gateway to overseas markets

Focuas Taiwan
Date: 2019/11/26
By: By William Yen

Michael Ignacio (second right), Arthur Abiera (third left), Jeff Lin (left), Simon Su (third right), and Carol Chao (second left) / Photo courtesy of the Manila Economic and Cultural Office

Michael Ignacio (second right), Arthur Abiera (third left), Jeff Lin (left), Simon Su (third right), and Carol Chao (second left) / Photo courtesy of the Manila Economic and Cultural Office

Taipei, Nov. 26 (CNA) Representatives of Taiwanese businesses attended an investment forum organized by Sung Yueh Construction Corp., and supported by the Commercial Affairs Section of the Manila Economic Cultural Office, in Taipei on Tuesday.

The objective of the forum was to attract investors to the Philippines by advocating for the Southeast Asian country as Taiwan's gateway to markets around the world.

Michael Ignacio, trade representative and director of commercial affairs at the Manila Economic and Cultural Office in Taipei, said the Philippines can provide Taiwanese businesses with access to the ASEAN Economic Community, which covers a market of 650 million people in 10 countries.

"It is like the EU, if we sell to each other we do not pay any import duties or tariffs because it is now a single market," Ignacio said to about 100 participants at the forum, held at a luxury hotel.
[FULL  STORY]

MediaTek launches flagship 5G solution

CUTTING-EDGE: MediaTek has for the first time caught up with Qualcomm Inc in migrating to next -generation wireless technology, after lagging on 2G, 3G and 4G chips

Taipei Times
Date: Nov 27, 2019
By: Lisa Wang  /  Staff reporter

Mobile phone chip designer MediaTek Inc (聯發科) yesterday unveiled its first 5G system-on-a-chip

MediaTek Inc chief executive officer Rick Tsai takes part in a news conference in Taipei to unveil the company’s new Dimensity 1000, its first 5G system-on-a-chip product.
Photo: CNA

(SoC) product, dubbed the Dimensity 1000, in preparation for the launch of 5G phones by Chinese customers during the Lunar New Year holiday.

The launch of the flagship 5G solution is a significant step for MediaTek, indicating that the company has for the first time caught up with Qualcomm Inc in migrating to next-generation wireless technology.

The Hsinchu-based company lagged behind its major rival in rolling out 2G, 3G and 4G chips, after entering the mobile phone chip business 14 years ago.

MediaTek said that it has invested NT$100 billion (US$3.28 billion) in researching and developing the 5G chip.    [FULL  STORY]

Taiwan and Thailand ink deal on agricultural cooperation

Taiwan will provide technical assistance in hopes of exporting seeds to Thailand

Taiwan News
Date: 2019/11/25
By: Teng Pei-ju, Taiwan News, Staff Writer

Taiwan and Thailand sign deal on agricultural cooperation. (Image from Taiwan’s representative office to Thailand)

TAIPEI (Taiwan News) — A Taiwanese university inked a cooperative deal with a Thai farm located near Bangkok on Sunday (Nov. 24), turning a new page for agricultural cooperation between the two countries.

For the initial phase of this cooperation, National Chung Hsing University’s Global Research & Industry Alliance (GRIA) will provide Faprathan Farm with technical assistance on sowing. If the efforts yield good results, the university will then export seeds from Taiwan to the farm.

Chang Yu-tai (張佑泰), general manager of Faprathan Farm’s parent firm, A-Best, said the farm would focus on tomatoes and vegetables for the time being. The GRIA will help the farm look for varieties most suitable for Thai soil.

If the initial cooperation proves successful, the market for Taiwanese seeds will then expand in Thailand through the farm, said Chang. He added that such cooperation will help elevate both the quality of varieties and sowing techniques in the Southeast Asian nation.   [FULL  STORY]

Manufacturers’ sentiment on business climate in Taiwan weakens

Focus Taiwan
Date: 2019/11/25
By: Pan Tzu-yu and Frances Huang

Taipei, Nov. 25 (CNA) Business sentiment among Taiwanese manufacturers weakened in October, amid worry over the global economy and the trade frictions between the United States and China, the Taiwan Institute of Economic Research (TIER) said Monday.

In October, the composite index for the manufacturing sector, which gauges business sentiment among manufacturers, fell for the second straight month, dropping 2.22 points from a month earlier to 92.37, according to data from TIER, one of the leading economic think tanks in Taiwan.

While the old economy industries saw an increase in orders in October, it was not enough to boost their sentiment, TIER said.

The information and communication industry got a boost during its October peak season, but the prices of some tech gadgets continued to fall, affecting sentiment in the industry, TIER said.
[FULL  STORY]

Industrial production declines again

BRIGHT SPOT: The computer, electronic and optical components industry’s output rose 17.87 percent on growing domestic production of servers, laptops and ethernet hubs

Taipei Times
Date: Nov 26, 2019
By: Natasha Li  /  Staff reporter

Industrial production fell 2.92 percent year-on-year last month, the second monthly contraction in a row, as the output of the manufacturing sector — the pillar of industrial production — declined 3.27 percent from a year earlier, the Ministry of Economic Affairs said yesterday.

However, output from other sectors showed mixed results, with the mining and quarrying sector dropping 13.15 percent, while the output of the water supply and electricity-and-gas supply sectors rose 4.56 percent and 2.74 percent respectively, the ministry said.

Within the manufacturing sector, the electronic components industry posted a contraction of 1.52 percent year-on-year after four consecutive months of growth, which the ministry attributed to a high comparison base last year and dwindling demand for integrated circuits.

The electronic components industry — the manufacturing sector’s biggest contributor — was also weighed down by declining LCD panel production as China-made panels continue to flood the market, the ministry said.    [FULL  STORY]

IPO activity could slow: FSC officials

ALL-ROUND SLUMP: This year’s IPOs might reach an 11-year low, but other countries have also seen declines, with global IPOs dropping 35.2% annually in the first half

Taipei Times
Date: Nov 25, 2019
By: Chen Cheng-hui  /  Staff reporter

Taiwan’s initial public offering (IPO) activity might slow this year compared with last year, as the number of IPOs as of the end of last month was 31, down 36 percent from the 49 registered in the same period last year, the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) reported yesterday, quoting unnamed Financial Supervisory Commission (FSC) officials.

Compared with the whole of last year, this year’s IPOs might also reach a new 11-year low, the commission said, attributing the disappointing performance to fluctuations caused by international political and economic situations that have also negatively influenced new listings through IPOs in other countries, the Liberty Times reported.

Citing World Federation of Exchanges statistics, the commission said that the number of global IPOs declined 35.2 percent in the first half of this year compared with the same period last year, with declines reported across all regions.

Asia-Pacific was down 32.7 percent; North America was down 22.3 percent; and Europe, the Middle East and Africa were down 55.4 percent, it said.    [FULL  STORY]

Convenience store puts Beyond Meat’s veggie burger patties on sale

Focus Taiwan
Date: 2019/11/23
By: Tsai Peng-min and Frances Huang

Photo courtesy of FamilyMart

Taipei, Nov. 23 (CNA) FamilyMart, one of Taiwan's leading convenience store chains, has started to sell the world's first plant-based burger patties — Beyond Burger — produced by California-headquartered Beyond Meat.

FamilyMart said Beyond Meat's vegetarian burger patties are made from a variety of protein-based food products including non-genetically modified peas, rice protein, potato starch, canola oil, coconut oil, and beetroot, and has a meat-like taste.

According to FamilyMart, the beet juice even allows the product to "bleed" and its iron content is twice that of beef, offering a a new option for vegetarians.

Since it is upbeat about strong demand for plant-based meat, which could hit US$85 billion worldwide by 2030, FamilyMart said it has decided to introduce Beyond Meat products to consumers here, making it the first convenience store chain in Taiwan to offer plant-based meat.
[FULL  STORY]

Vietnam, Taiwan reap biggest benefits from US-China trade war

Vietnamese, Taiwanese exports to US soar most due to trade war with China

Taiwan News
Date: 2019/11/22
By: Keoni Everington, Taiwan News, Staff Writer

Vietnam and Taiwan biggest winners from trade war. (statista chart)

TAIPEI (Taiwan News) — Vietnam and Taiwan have seen the largest surges in exports to the U.S. as its trade war with China rages on, according to data from Statista.

On Monday (Nov. 18), German online statistics portal Statista published a report showing that over the first nine months of this year, U.S. imports from Vietnam and Taiwan have seen a year-on-year surge of 35 and 21 percent, respectively. During the same period, U.S. imports from China plummeted by 13 percent.

The report cited United States International Trade Commission data showing that Vietnam's exports of mobile phones, footwear, textiles, furniture, and fish to the U.S. all increased significantly. Vietnamese-made mobile phones, however, were the biggest winner, with shipments to the U.S. doubling over the same period last year.

Over the first three quarters of this year, Vietnam has leaped five spots from being the 12th largest exporter to the U.S. to the seventh compared with the same period last year, based on US Census Bureau data. Taiwan has held steady at the 13th spot for exports, but in terms of total trade with the U.S., it has risen from 11th to 10th.    [FULL  STORY]