TAIPEI (Taiwan News) — Taiwanese banks significantly boosted lending to countries in Southeast Asia, South Asia, Australia, and New Zealand last year, reaching nearly NT$2 trillion (NT$63.6 billion), the Financial Supervisory Commission said.
The growth was largely driven by Taiwanese companies adjusting their overseas operations, CNA reported. By the end of December, loans to these markets — part of Taiwan’s New Southbound Policy, which aims to strengthen economic ties with 18 nations — totaled NT$2 trillion.
The increase of NT$179 billion from the previous year surpassed the commission’s target of NT$1.89 trillion by nearly 246%. It also accounted for 40.6% of the NT$441 billion growth in Taiwanese banks’ total overseas lending, highlighting the growing importance of these markets.
The targeted countries include the 10 members of the Association of Southeast Asian Nations (ASEAN), including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. They are joined by six South Asian countries, Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka, as well as Australia and New Zealand.
Singapore led the growth in lending last year with NT$81.9 billion, followed by Australia with NT$67.4 billion and India with NT$46.7 billion. Banks said the rise reflects active economies and stronger corporate demand for credit in these regions.
The top five banks contributing to the New Southbound lending growth were CTBC with NT$3.57 billion, E Sun with NT$3.35 billion, Taipei Fubon with NT$3.28 billion, Cathay United with NT$3.22 billion, and Taishin Bank with NT$2.01 billion.
The region is becoming more attractive for business. Hsu Tsun-tsu (徐遵慈), director of the Taiwan ASEAN Studies Center at the Chung-Hua Institution for Economic Research, noted that Vietnam has overtaken China as a hub for Asia’s electronics industry, according to CIER.
Since the New Southbound Policy began in 2016, Taiwanese companies have increasingly expanded into Malaysia, Thailand, and the Philippines. Early last year, the focus was on electronics, financial services, and optical products, according to the Cabinet.
A report by CIER and Dun and Bradstreet showed that in 2024, over 6,200 Taiwanese companies operated in ASEAN countries. Total revenue from these businesses reached NT$8.19 trillion, averaging about NT$1.3 billion per company, according to CIER.
Singapore generated nearly half of the revenue at 47.6%. It was followed by Malaysia with 19.7% and Vietnam with 17%, which had the largest number of Taiwanese companies.
