Taiwan is underperforming as a destination for foreign investment, lagging behind traditional and emerging competitors in the region chiefly due to difficult access, the American Chamber of Commerce (AmCham) in Taipei said yesterday.
The trade group made the statement and a string of policy recommendations at a press conference to announce its annual white paper titled “Taiwan at a Crossroads.”
AmCham said the coming year will be crucial in determining Taiwan’s economic future and warned that the nation risks losing out to its regional competitors if economic reform and liberalization are not enacted swiftly.
Approved foreign direct investment in Taiwan was US$5.56 billion last year, higher than the US$3.81 billion in 2010 and US$4.96 billion in 2011, but much lower than that of Thailand, Vietnam, Indonesia, Hong Kong and Singapore, AmCham chairman Alan Eusden said.
South Korea, with which Taiwan is most often compared, drew US$16.3 billion in foreign direct investment last year, Eusden said.
“The Ministry of Economic Affairs (MOEA) should thoroughly re-evaluate the foreign investment application approval process,” Eusden said, adding that government agencies should publish clear and comprehensive criteria for assessing investment proposals with specific timetables for regulatory decisions.
Taiwan scared away US$20 billion of foreign investment in June 2011 when it rejected private equity fund Orion Investment Co’s (遨睿投資) buyout of Yageo Corp (國巨), Taiwan’s biggest maker of passive components used in electronics, said William Bryson, head of AmCham’s private equity committee.
The Investment Commission withheld approval due to concerns over the financial soundness and transparency of the deal, ending hopes of 10 to 11 other investment deals valued at US$2 million each, Bryson said.
Attractiveness and ease of investment sit atop the list of concerns of prospective investors and the latter appears the biggest obstacle, Bryson said.
“Although Taiwan scores well on international competitiveness surveys, those rankings do not translate into high levels of inbound investment,” he said.
Taiwan embarrassingly ranks second to last among 17 Asian countries in attracting private equity fund investment, behind Sri Lanka and ahead only of Pakistan, AmCham’s white paper says.
AmCham urged President Ma Ying-jeou (馬英九), now well into his second term, to make a greater effort to revitalize the economy as time is running out to establish his legacy, the paper says.
“Actions taken in the next 12 months before the ‘lame duck’ status begins to hamper progress will be decisive in shaping the Ma administration’s future place in history,” it says.
Eusden pressed Ma to mobilize a national campaign, with trade liberalization and joining the Trans-Pacific Partnership as overriding objectives, adding that only urgent action can propel Taiwan’s economy out of the doldrums.
Taiwan’s wages have stagnated, consumer confidence is weak and young people increasingly go to China to find better, higher-paying jobs, the AmCham report says.
The trade group does not have an opinion on the planned nuclear referendum, but suggests policymakers make sure there is sufficient energy to meet the demands of all sectors of the economy.
ENDEAVOR MANTA: The ship is programmed to automatically return to its designated home port and would self-destruct if seized by another party The Endeavor Manta, Taiwan’s first military-specification uncrewed surface vehicle (USV) tailor-made to operate in the Taiwan Strait in a bid to bolster the nation’s asymmetric combat capabilities made its first appearance at Kaohsiung’s Singda Harbor yesterday. Taking inspiration from Ukraine’s navy, which is using USVs to force Russia’s Black Sea fleet to take shelter within its own ports, CSBC Taiwan (台灣國際造船) established a research and development unit on USVs last year, CSBC chairman Huang Cheng-hung (黃正弘) said. With the exception of the satellite guidance system and the outboard motors — which were purchased from foreign companies that were not affiliated with Chinese-funded
PERMIT REVOKED: The influencer at a news conference said the National Immigration Agency was infringing on human rights and persecuting Chinese spouses Chinese influencer “Yaya in Taiwan” (亞亞在台灣) yesterday evening voluntarily left Taiwan, despite saying yesterday morning that she had “no intention” of leaving after her residence permit was revoked over her comments on Taiwan being “unified” with China by military force. The Ministry of the Interior yesterday had said that it could forcibly deport the influencer at midnight, but was considering taking a more flexible approach and beginning procedures this morning. The influencer, whose given name is Liu Zhenya (劉振亞), departed on a 8:45pm flight from Taipei International Airport (Songshan airport) to Fuzhou, China. Liu held a news conference at the airport at 7pm,
Taiwan was ranked the fourth-safest country in the world with a score of 82.9, trailing only Andorra, the United Arab Emirates and Qatar in Numbeo’s Safety Index by Country report. Taiwan’s score improved by 0.1 points compared with last year’s mid-year report, which had Taiwan fourth with a score of 82.8. However, both scores were lower than in last year’s first review, when Taiwan scored 83.3, and are a long way from when Taiwan was named the second-safest country in the world in 2021, scoring 84.8. Taiwan ranked higher than Singapore in ninth with a score of 77.4 and Japan in 10th with
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —