Alexa
  • Directory of Taiwan

AmCham calls for FDI boost to Taiwan economy

AmCham calls for FDI boost to Taiwan economy

Taipei, Oct. 18 (CNA) The American Chamber of Commerce in Taipei (AmCham Taipei, ??????) has urged the Taiwan government to boost its sluggish economy by fostering a more attractive business environment for foreign investment. The editorial in the chamber's Taiwan Business Topics monthly magazine in October said that Taiwan needs to take advantage of all possible ways to reinvigorate its economy in an increasingly unfavorable environment of falling exports and anemic domestic consumption. "One policy suggestion that appears on almost every list of potential solutions is to heighten Taiwan's capability to attract foreign direct investment (FDI)," AmCham Taipei said. "FDI is often thought of as a source of capital, even more significant for Taiwan is that it creates job opportunities, introduces innovative technologies and new business platforms, while tying Taiwan more closely to the regional and global economy," the chamber said. Unfortunately, in recent years Taiwan has lagged most other major economies in the region in terms of FDI, AmCham Taipei said. With US$5.8 billion in FDI in 2014, Taiwan was last among 12 leading Asian locations, according to data compiled by the Hong Kong-based Political and Economic Risk Consultancy. The data showed that FDI in Taiwan was surpassed not only by China, Hong Kong, Singapore, India, Indonesia and South Korea, but also by Thailand, Malaysia, Japan, Vietnam and the Philippines. AmCham Taipei listed numerous reasons for the relative lack of investment interest in Taiwan, including the difficulties Taipei faces in entering into bilateral and multilateral free trade agreements to help it retain competitiveness against trade rivals. For that reason, it is crucial for Taiwan to join the emerging Trans-Pacific Partnership (TPP) trade grouping when it expands beyond the current 12 negotiating parties, the chamber noted. Improving regulatory coherence by tackling many of the problems raised in AmCham Taipei's annual Taiwan White Paper would also create a more welcoming investment environment, according to the chamber. AmCham Taipei's Private Equity Committee reiterated that the investment approval process in Taiwan is widely considered to be opaque, leaving potential investors uncertain as to whether a given project will be deemed acceptable by the authorities. However, a series of productive meetings has taken place over the past few years between representatives of the AmCham committee and government officials from the Investment Commission and the Financial Supervisory Commission. The results were encouraging as committee members were assured a number of vague criteria previously used to evaluate investment cases -- such as the possible impact of the deal on supply chains or capital markets -- would be either clarified or dropped, AmCham Taipei said. "Once investors are confident they know what the rules are, they can shape a project to fit those parameters. But in the absence of transparency, Taiwan will be hard put to attract the FDI levels it needs to boost the economy," the American chamber said. Founded in 1951, AmCham Taipei is a non-profit business organization dedicated to promoting the interests of international business in Taiwan. It has more than 1,000 members representing over 500 companies and 26 committees advocating various industry interests. (By Jeffrey Wu)


Updated : 2021-09-17 21:30 GMT+08:00